U.S. HOME HEALTHCARE MARKET ANALYSIS

The U.S. Home Healthcare market was valued at US$ 22.14 Bn in 2022 and is forecast to reach a value of US$ 36.05 Bn by 2030 at a CAGR of 6.3% between 2023 and 2030. The U.S. Home Healthcare market is experiencing strong growth due to the rise in burden of chronic diseases and growing geriatric (aging) population in the U.S. Moreover, increasing demand for better healthcare services and increase in preference for personalized care is expected to boost growth of the market. However, factors such as risks associated with home healthcare equipment and shortage of skilled or trained workforce are expected to hamper the market growth.

U.S. Home Healthcare Market Drivers:

High prevalence of chronic diseases to propel market growth

One of the key factors expected to augment growth of the U.S. Home Healthcare market during the forecast period is the rise in burden of chronic diseases in the region. Such a high burden of chronic diseases leads to an increase in demand for home healthcare services and is expected to boost the market growth. According to the U.S. Centers for Disease Control and Prevention (CDC), chronic diseases, such as heart disease, cancer, and diabetes, are the leading causes of death and disability in the United States. Moreover, 6 in 10 individuals in the U.S. live with at least one chronic disease, like heart disease and stroke, cancer, or diabetes.

Growing geriatric population to underpin market growth

Another factor which is driving growth of the U.S. Home Healthcare market is the growing geriatric (aging) population in the U.S. For instance, the population is aging rapidly due to a decrease in the birth rate and increase in life expectancy, and may result in high prevalence of chronic diseases, which in turn increases demand for home health services/solutions. According to the U.S. Census Bureau, more than 56 million adults ages 65 and older live in the U.S., accounting for about 16.9% of the nation’s population. Moreover, the total number of adults ages 65 and older is projected to rise to an estimated 85.7 million by 2050 (22% of the overall population).

U.S. Home Healthcare Market Opportunities:

Increasing demand for better healthcare services is expected to offer lucrative growth opportunities for players in the U.S. Home Healthcare market. For instance, in March 2021, Humana announced the launch of CenterWell Home Health division. CenterWell works in collaboration with patients’ healthcare providers to bring exceptional care directly to comfort and safety of their homes. Skilled nurses and therapists will help people recover from illness/injury and learn to manage their health with confidence so they can remain independent and enjoy the higher quality of life. This in turn is expected to augment the growth of the market.

Increase in preference for personalized care is expected to provide significant growth opportunities for players in the U.S. Home Healthcare market. With the rise in preference for personalized care, the demand for home health services is also increasing with rapid pace. For instance, in November 2020, Baptist Health announced a joint venture with BAYADA Home Health Care to expand upon the services provided by Baptist Home Health for more than 25 years. The combined organization, Baptist Home Health Care by BAYADA, will have the capabilities to serve more patients at home, where they can recover and thrive best.

U.S. Home Healthcare Market Trends:

High demand for home-use therapeutic devices is a recent trend

With the burden of chronic diseases increasing and healthcare infrastructure and resources limited, home healthcare can help meet a portion of the current healthcare need/requirement. For instance, in April 2020, CVS Health collaborated with UCLA Health to enhance its capacity and capabilities to treat more patients in home-based settings, easing the burden of COVID-19 crisis on hospitals. This trend is expected to continue over the forecast period.

Rise in adoption of at-home, self-testing solutions is another trend

With the help of at-home, self-administered testing kits or solutions, players in the market are able to support chronic and preventive care virtually and in patients' homes while facilitating patient-centric primary care experiences for a wider range of medical conditions. Thus, there is an increase in demand for such home-use equipment. This trend is also expected to continue over the forecast period, driving the growth of the U.S. Home Healthcare market.

U.S. Home Healthcare Market Restraints:

Risks associated with home equipment to hinder market growth

One of the key factors expected to hamper growth of the U.S. Home Healthcare market is the risks associated with home healthcare equipment. Home healthcare equipment allow patients to receive healthcare services at the convenience of their home; however, some risks are associated with the use of home healthcare equipment, such as fire hazards due to electrical problems, malfunction & damage to the equipment, and software breakdown, among others. Such risks with home healthcare equipment restrain the growth of the market.

Figure 1. Global U.S. Home Healthcare Market Value (US$ Mn) & Y-o-Y Growth (%), 2017-2030

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Lack of skilled/trained workforce to hamper market growth

Another factor which is hampering the growth of the U.S. Home Healthcare market is the shortage of workforce or lack of skilled/trained workforce. Increasing demand for home healthcare services is, in turn, contributing to shortage of clinicians required to provide services. The state of California is expected to witness largest shortage of nursing staff, with an expected shortfall of 44,500 nurses by 2030. The shortage can lead to an inability of care providers to fill gaps in their work shifts and the hiring of temporary staff, which may result in higher costs.

Figure 2. Global U.S. Home Healthcare Market Share (%), By Equipment, 2023

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U.S. Home Healthcare Market Segmentation:

The U.S. Home Healthcare market report is segmented into Services and Equipment.

Based on Services, the market is segmented into Skilled Home Healthcare Services and Unskilled Home Healthcare Services. Of which, Skilled Home Healthcare Services Segment is expected to dominate the U.S. Home Healthcare market over the forecast period and this is attributed to the rise in burden of chronic diseases. Skilled Home Health Care is a great option for those recovering from surgery, or managing chronic disease, such as heart disease, diabetes, COPD, or arthritis.

Based on Equipment, the U.S. Home Healthcare market is segmented into Therapeutic Equipment, Diagnostic Equipment, and Mobility Assistance Devices. Out of which, Therapeutic Equipment Segment is expected to dominate the market over the forecast period and this is attributed to the rise in usage of home dialysis equipment, insulin delivery devices, and intravenous pumps.

Diagnostic Equipment Segment is also expected to witness significant growth in the near future and this is owing to rise in prevalence of long-term illnesses requiring frequent diagnosis, growing patient awareness, and rise in adoption of BP monitors and pregnancy and fertility tests.

U.S. Home Healthcare Market: Key Developments

In March 2022, Axxess announced the launch of a fully independent palliative care software. The Axxess Palliative Care is the latest innovation in Axxess' complete suite of solutions developed for organizations that provide care in the home.

In February 2022, CVS Pharmacy announced the launch of six home healthcare products as an extension of the company's CVS Health product line. The new products include convertible shower chairs, easy-fold travel walkers, and canes with comfort grips.

In March 2020, EverlyWell, Nurx launched at-home COVID-19 test kits in United States. Users will get the test results digitally within a 48-hour window. If the results are positive, users can tap into a telemedicine consult with a board-certified doctor from PWN health.

In February 2020, HospiceWorks Inc. launched a new software platform made specifically for the hospice industry called HospiceWorks. The cloud-based software is designed with complex built-in business rules engine to execute complicated tasks with the ease of use while helping care teams improve the delivery of patient care.

U.S. Home Healthcare Market: Key Companies Insights

The U.S. Home Healthcare market is highly competitive. This is attributed to the rise in demand for home-use therapeutic devices and diagnostic devices in the U.S., as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the U.S. Home Healthcare market are Medline Industries Inc., Medtronic Plc, 3M Healthcare, Baxter International Inc., B. Braun Melsungen AG, Hoffman-La Roche AG, and Nxstage Medical (Fresenius Medical Care), among others.

*Definition: Home healthcare refers to a wide range of healthcare services that can be given in at home for illness or injury. These services include various equipment and therapies along with software to help the physicians to plan efficient treatment procedures in the home-care settings.