PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1373907
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1373907
Long term care market size was valued at USD 1,500,651 Million in 2022, expanding at a CAGR of 7.0% from 2023 to 2030.
Long-term care is assistance for elderly people who are unable to care for themselves because of mental or physical illnesses, such as multimorbidity and chronic disease. Depending on the extent of constraint, support with daily living activities such as dressing, medication management, and basic health services might be given at home, in institutions, or the community. Additionally, paid or unpaid, formal and informal laborers, typically offer these services. Competent social or health workers who work in nursing homes could potentially be considered formal professionals. Paid caregivers and unpaid families who are not reported to social security authorities and labor outside of formal employment norms are classified as informal caregivers.
Long Term Care Market- Market Dynamics
The rising aging population and government regulations are boosting the market growth
The long-term care demand is increasing among the aging population as it increases the likelihood that people may experience chronic conditions and impairments that call for continued assistance and care as they get older. The need for long-term care services has risen because of the ability to live longer with chronic diseases and impairments owing to advancements in medical technology. Additionally, changes in lifestyles and demographics have led to a rise in the number of people living alone, which has driven up the demand for long-term care services. Moreover, the market is also impacted by government regulations and policies as well as establishing standards for quality, providing funds, and regulating the sector. However, the lack of skilled healthcare workers and the high cost of long-term care services for many individuals and families are likely to restrain the market demand.
Long Term Care Market- Key Insights
As per the analysis shared by our research analyst, the global long term care market is estimated to grow annually at a CAGR of around 7.0% over the forecast period (2023-2030)
The long term care industry is projected to grow at a significant rate due to the increasing demand among the older population
Based on service type segmentation, nursing care was predicted to show maximum market share in the year 2022
Based on payer segmentation, public was the leading type in 2022
In the long-term care market, new demands have developed due to changes in care settings and needs in different situations, defining the preferences of target populations.
The global long term care market is segmented on the basis of service type, gender, payer, and region.
The market is divided into four categories based on service type: assisted living facilities, home healthcare, nursing care, hospice & palliative care, and others. The nursing care segment is accounted to dominate the market revenue share. The segment is attributed to the elderly choice of care and high demand from developing nations. The need for nursing care is growing with the rising geriatric population and increasing prevalence & incidence of chronic diseases, like Alzheimer's disease, heart problems, and cancer.
The market is divided into three categories based on payer: private, public, and out-of-pocket. The public segment is likely to maintain its dominance during the forecast period. The segment is attributed to the high public spending by emerging nations such as Europe and the U.S. Moreover, the private segment is accounted to witness the fastest growth. Owing to the increasing opportunities to supplement the provision of basic public services, private long-term care (LTC) insurance providers are entering several important national markets.
Long Term Care Market- Geographical Insights
The North American region is likely to dominate the market due to the increasing geriatric population. Additionally, the major factors including high government investments and implementation of rules and regulations are contributing to the long-term care market growth in the North America region. Moreover, the Asia-Pacific is witnessing lucrative growth over the forecast period. This is attributed to a rising rate of chronic diseases such as diabetes, respiratory ailments, and heart disease.
The market is fragmented with the presence of various local companies as these key players are striving to gain higher market share by focusing on adopting several marketing strategies, such as investments, partnerships, new product launches, and mergers & acquisitions. The companies are also investing in the development of better products. Moreover, the long-term care demand is increasing among the older population, and services are now easily available in industrialized economies. For instance, in August 2023, Omega Healthcare Investors, Inc. acquired Four Skilled Nursing Facilities for $114.8 million in West Virginia. The company leased them to an existing operator. The four SNFs were added to the master lease of the operator with an initial annual cash yield of 9.5%, with 2.5% annual escalators.
For instance, in May 2021, Amedisys agreed to buy the home health and hospice services of the Visiting Nurse Association (VNA), a nonprofit based in Omaha, Nebraska.