Long Term Care Market

Global Long Term Care Market Size

The size of the global long term care market was worth USD 922.4 billion in 2023. The global market is expected to grow at a CAGR of 7.04% from 2024 to 2029 and be worth from USD 987.34 billion in 2024 to USD 1701.5 billion by 2032.

The demand for long-term care services has been growing rapidly in the last few years. The growing aging population and increasing life expectancy are significantly contributing to the growing demand for long-term care services. Countries such as the United States, Japan, and Germany have the highest aging populations, and the demand for long-term care services is also high in these countries compared to other countries. For instance, as per the statistics of the U.S. Census Bureau, the number of people aged 65 and above in the U.S. is expected to increase to 95 million by 2060, which was 52 million in 2018. Similarly, Japan is recognized as having one of the highest life expectancies in the world, and the aging population is growing significantly in Japan and will account for close to 38% of the entire population by 2065. This shift in demographics is resulting in the increasing demand for long-term care services that include nursing homes, assisted living facilities, and in-home care. The long-term care market is intensely competitive, with several market participants. Companies that operate in the global long-term care market have been trying to adopt strategies such as telemedicine, AI-driven health monitoring systems, and personalized care plans to improve their position in the global market.

MARKET DRIVERS

YoY Growth in the Global Aging Population

The population is rapidly aging worldwide. The United Nations projects that the number of people of the age of 60 and above will reach 2.1 billion by 2050. Japan is one of the countries with the highest aging population, constituting 28% of the Japanese population already. Europe is right next to Japan, with 20% of the European population aged 65 and above. The growing aging population is likely to fuel the demand for long-term care facilities and services to support the medical needs of the aging population. According to the World Health Organization (WHO), approximately 80% of the aged population worldwide will live in low- and middle-income countries by 2050, which will add a significant boost to the growth of the long-term care market in the future.

Growing Patient Population Suffering From Chronic Diseases

The prevalence of chronic diseases such as diabetes, heart disease, and Alzheimer's is growing significantly and is resulting in the increasing demand for long-term care solutions. As per the data of the Centers for Disease Control and Prevention (CDC), approximately 60% of the adults in the U.S. are currently suffering from at least one, and 40% are suffering from two or more chronic diseases. According to the reports of the Alzheimer's Association, approximately 6.2 million Americans aged 65 and above had Alzheimer’s dementia in 2021, and this number is likely to hit 13 million by 2050. Similarly, the prevalence of diabetes is also skyrocketing. According to the projections of the International Diabetes Federation (IDF), more than 700 million adults will be suffering from diabetes by 2045. The growing prevalence of these diseases is accelerating the urgent need for long-term care facilities and contributing to the global market expansion.

Increasing Healthcare Expenditure

Healthcare expenditure is growing aggressively worldwide. As per the World Health Organization (WHO), global health expenditure grew from USD 8.3 trillion in 2020 to USD 9.8 trillion in 2021. This increase in healthcare spending is primarily due to the growing aging population and the prevalence of chronic diseases. The national health expenditure of the U.S. was USD 4.1 trillion in 2020, which was 19.7% of the GDP of the U.S. Europe is not less to any other region, Germany allocated 11.7% of the GDP to health in 2019. The healthcare expenditure of all countries has been continuously increasing, and these increasing healthcare expenditures are driving the development and expansion of long-term care facilities to improve the quality of care and support the innovations in healthcare delivery and favoring global market growth.

Furthermore, factors such as y-o-y growth in the demand for home healthcare services, technological advancements in medical devices, the rapid expansion of telemedicine and telehealth services and increasing support and funding from governments in favor of long-term care and growing awareness about long-term care services among people are driving the global long term care market growth. Y-o-Y growth in the number of long-term care facilities worldwide, increasing disposable income, an increasing number of improvements in healthcare infrastructure, and a growing number of insurance providers offering long-term care policies are positively effectively the growth of the global market.

MARKET RESTRAINTS

High Costs

High costs associated with long-term care services are majorly hampering the growth of the global market. In addition, factors such as a shortage of skilled healthcare professionals, limited funding and reimbursement issues, regulatory and compliance challenges, and Inadequate infrastructure in rural areas that support long-term care are impeding the global market growth. The complexity of long-term care insurance policies, high staff turnover rates in care facilities, and lack of public awareness and education about long-term care are further inhibiting the growth rate of the global market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Service Type Insights

The home healthcare services segment dominated the market, accounting for 40.7% of the global market share in 2023 and the domination of the home healthcare services segment in the global market is expected to continue throughout the forecast period. The growth of the home healthcare services segment is majorly driven by the growing adoption of home healthcare services worldwide, increasing aging population, rising preference for aging in place and technological advancements that facilitate home-based care. For instance, as per the data of the National Association for Home Care & Hospice, more than 12 million individuals receive home healthcare services in the United States. In addition, the rising demand for personalized care and the cost-effectiveness of long-term care compared to institutional care are contributing to the expansion of the home healthcare services segment during the forecast period.

The facility-based care services segment is estimated to account for a substantial share of the worldwide market during the forecast period. The growing prevalence of chronic diseases, increasing healthcare needs of the aging population and the availability of specialized care facilities are driving the growth of the facility-based care services segment in the global market. According to the Centers for Disease Control and Prevention, an estimated 1.5 million people live in nursing homes in the U.S. alone.

By Gender Insights

The female segment slightly dominated the male segment by accounting for 54.9% of the global market share in 2023. Women are more likely to live longer than men and require long-term care services. The higher life expectancy of women, greater susceptibility of women to certain chronic diseases such as osteoporosis and dementia and a larger proportion of elderly women are primarily driving the growth of the female segment in the global market. Y-o-Y rise in the number of women entering advanced ages and the rising prevalence of age-related diseases are further fuelling the growth rate of the female segment in the global market. As per the American Association of Retired Persons, approximately 70% of nursing home residents are women.

By Payer Insights

The public segment led the market, accounting for 48.8% of the global market share in 2023 and is estimated to grow at a steady CAGR during the forecast period. Government programs such as Medicare and Medicaid in the United States and similar schemes in other countries are majorly driving the growth of the public segment in the global market. As per the statistics of the Kaiser Family Foundation, Medicaid accounted for about $154 billion in long-term care spending in 2022 in the U.S. An increase in the number of initiatives from the governments of several countries to provide affordable care for the elderly is further boosting the expansion of the public segment in the global market.

The private segment is estimated to register the fastest growth in the global market during the forecast period owing to the increasing awareness about long-term care needs, the limitations of public funding and growing income levels. The availability of comprehensive insurance plans and tax incentives for purchasing long-term care insurance is further aiding the expansion of the private-payer segment in the global market.

REGIONAL ANALYSIS

North America is the most dominant region in the worldwide market and accounted for 36.1% of the worldwide market share. The North American region is expected to continue doing well during the forecast period due to the presence of well-established healthcare infrastructure, high healthcare expenditure, and a rapidly aging population. For instance, the United States spends more than USD 420 billion every year on long-term care, and Medicaid holds a major portion of it. The initiatives from the governments of North American countries and the presence of numerous long-term care facilities are further significantly contributing to the expansion of the North American market.

The Asia-Pacific region has been experiencing rapid growth in the global long-term care market and is predicted to be the fastest-growing regional segment in the global market. The rapidly growing aging population in the Asia-Pacific region, increasing disposable income and growing number of initiatives from the governments of Asia-Pacific countries are propelling the long term care market in the Asia-Pacific region. Countries such as Japan, China, and India have been investing heavily in healthcare infrastructure and services to address the growing demand, which is contributing to the regional market expansion. Japan is likely to lead the long term care market in the Asia-Pacific region owing to the growing healthcare expenditure and increasing aging population. For instance, according to Japan’s Ministry of Health, Labour and Welfare, Japan spends more than USD 70 billion annually on long-term care services. China is expected to play a key role in the Asia-Pacific market during the forecast period. As per the National Bureau of Statistics of China, the aging population in China is projected to reach 300 million by 2035.

Europe was the second largest regional segment for long-term care in the worldwide market and is predicted to showcase a prominent CAGR during the forecast period. The extensive public funding, strong regulatory frameworks and Y-o-Y rise in the population suffering from chronic diseases in Europe are propelling the long term care market in Europe. The growing aging population and the increasing number of initiatives from the governments of European countries to improve elderly care are further boosting the European market growth. Germany and France are the largest markets for long term care within Europe and together account for a substantial share of the European market.

KEY MARKET PLAYERS

Companies that play a key role in the global long term care market include Brookdale Senior Living Inc., Sunrise Senior Living LLC, Genesis Healthcare Inc., Home Instead, Inc., Atria Senior Living Group, Diversicare Healthcare Services Inc., Extendicare Inc., Sonida Senior Living, Emeritus Corporation, Knight Health Holdings, LLC, LHC Group, Inc., Amedisys Inc., Senior Care Centers of America, Five Star Senior Living Inc., Kindred Healthcare Inc., Senior Lifestyle Corporation, Encompass Health Corporation, Golden LivingCenters, PruittHealth, Capital Senior Living Corporation, Health PEI (Government of Prince Edward Island), Revera Inc., Life Care Centers of America, National Healthcare Corporation, The Ensign Group, Inc. and The Evangelical Lutheran Good Samaritan Society.

RECENT HAPPENINGS IN THE MARKET

• In November 2023, the U.S. News & World Report acknowledged 19 of the Genesis Healthcare facilities as best nursing homes for 2024 for their exceptional performance in providing high-quality care and services to residents.

MARKET SEGMENTATION

This research report on the global long-term care market has been segmented and sub-segmented based on service type, gender, payer, and region.

By Service Type

• Home Healthcare Services
• Facility-Based Care Services
• Community-Based Services
• Others

By Gender

• Male
• Female

By Payer

• Public
• Private
• Out-Of-Pocket

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa