Long Term Care Market Size Worth $1.7 Trillion By 2027 | CAGR: 7.1%

The global long term care market size is expected to reach USD 1.7 trillion by 2027, expanding at a CAGR of 7.1%, according to a new report by Grand View Research, Inc. The market is expected to grow primarily owing to the rising prevalence of target diseases, especially Alzheimer’s and other dementias, among the aging population. In addition to this, increasing awareness about different long term care (LTC) facilities and the increasing medical coverage for home healthcare are likely to benefit LTC market growth.

According to World Population Prospects 2019, the global population aged 65 years and above was 703 million in 2019. The number of elderly people is projected to double by 2050 to reach 1.5 billion. The global share of the elderly population increased to 9% in 2019 from 6% in 1990 and is expected to rise further to 16% by 2050 with one in every six people in the world to be over 65 years of age. It is expected that the people turning 65 years are more likely to take some type of long term care services in the years to come. There has also been a shift towards in-home care from hospitals.

Developing economies make for lucrative markers as far as home healthcare is concerned. India, for instance, has many home healthcare startups such as Health Care at Home, Zoctr, Vatsalya, Zozz, Life Circle Health Services, Healers at Home, and the Nightingales, a factor that has worked in its favor. In India, Portea is one of the market leaders in home healthcare. In November 2017, Portea raised USD 26.0 million in the Series C funding for better home healthcare facilities.

Growing medical coverage by government and private insurers has a positive impact on the growth of the long term care market. According to the Hospice Association of America, Medicare pays USD 173 per day for inpatient respite care, USD 744 per day for general inpatient care, USD 193 per day for routine homecare, and USD 41 per hour for continuous homecare. Moreover, in 2016, Medicare paid a total of USD 16.9 billion to hospice providers, and the average spending per Medicare hospice patient was USD 11,820.

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Further key findings from the study suggest:

• In 2019, the nursing care held the largest share in the service segment of the long term care market attributed to the presence of a large number of facilities offering nursing care, medical supervision, and round the clock assistance
• The home healthcare segment was another major segment owing to increasing awareness regarding such facilities, cost savings offered by them as compared to hospital stays or nursing homes, and proactive health monitoring
• The home healthcare segment is expected to witness high growth in developing nations owing to increasing need for geriatric care, presence of double-income households, and ongoing social changes
• Hospice is the fastest growing segment owing to the increasing incidence rate of Alzheimer’s and dementia and an increase in post-hospital care. Moreover, the coverage offered by both Medicaid and private insurers has relieved residents from out-of-pocket payments that have to be borne by them
• North America dominated the market in 2019, majorly driven by advanced medical infrastructure, awareness about the advantages of home health services, rising geriatric population, and government support. Around 13% of the people in U.S. are 65 years or above and it is expected that by 2050, one in six Americans would be at least 65 years of age
• Asia Pacific is the fastest growing market owing to the increasing rate of chronic diseases, the increasing disposable incomes, and the decreasing working population. For instance, in China, the one-child policy has eventually decreased the working population as compared to the older population
• Industry players are continuously investing in expanding and revamping existing facilities. For instance, in February 2019, Genesis HealthCare underwent a real estate partnership with Next Healthcare Capital. The deal involved 15 skilled nursing facilities previously leased from Welltower Inc.

Key players operating in the market include Brookdale Senior Living, Inc.; Sunrise Carlisle, LP; Atria Senior Living Group; Extendicare, Inc.; Senior Care Centers of America; Kindred Healthcare, Inc.; Genesis Healthcare Corp.; Home Instead Senior Care, Inc.; Capital Senior Living Corporation; and Diversicare Healthcare Services, Inc. and Amedisys, Inc.