The Global Care Economy, Transformations and Opportunities to 2035

Global Care-Dependent Population to Reach 3.2-4.6 Billion by 2035; Strong Growth Potential for Care Infrastructure and Next Generation Technologies

The growing global care-dependent population, which includes children, the elderly, the sick, and the disabled, will create a rapidly burgeoning market for care economy-related services. Frost & Sullivan estimates that the global care-dependent population will reach between 3.2 billion and 4.6 billion persons by 2035, representing a sizeable share of the global population.

This piece is designed to explore care-dependent population forecasts, analyze spill-over impacts of the care economy, and assess technological transformations. Next-generation care economy technologies, including elderly care robots and fall detection technologies, have immense growth potential due to the growing care-dependent population size and rising care worker shortages. Silver tech or age tech (tech designed for the elderly) should particularly see heightened demand with the global ageing crisis.

Megatrends transforming the future of the global care economy have also been identified in this analysis, including multi-stakeholder collaborations and cross-functional care ecosystems. The unique drivers and impacts of these transformations have been highlighted in detail, as have emerging investment opportunities.

The care economy policy playbook has been examined, including government policies to address the aging population's needs and the burden of care on women. Considering the disproportionate burden of care on women, highlights of family- and women-centric policy have been explored in detail.

Through this care economy-focused analysis, policymakers and corporations will gain insights into key transformations shaping the care economy over the next decade. Deep dives into care technologies, policy direction, and megatrends will point to prime areas for portfolio expansion, new policy development, and new investments.

Key questions answered in this piece:

• What is the CAGR of different care-dependent groups through to 2035?
• Which care-dependent groups should be of prime focus for new product/portfolio expansion?
• What are some of the key megatrends transforming the care economy?
• What is the future growth potential for next-generation care technologies?
• What are the three biggest growth opportunities in the care economy space?
• Where is the bulk of policy focus in care directed towards?

The Impact of the Top 3 Strategic Imperatives for the Global Care Economy

Innovative Business Models: Next Generation Care Technologies to Help Meet Growing Care Burden Amidst Workforce Shortages

• Why
• While the care-dependent population will grow, there will also be a rising shortage of care/healthcare workers, underlining the need for transformative technologies to reduce care workload.
• The UK, for example, only has sufficient nurse staffing to cover 1/3 of shifts, based on 2024 survey data.
• Frost Perspective
• Care technologies such as fall detection for the elderly and wearables for the visually-impaired reduce the burden of at-home caregiving and allow care staff to focus on priority tasks.

Disruptive Technologies: Product Portfolio Modifications/Retrofitting and Technology Upgrades to Serve Disabled and Elderly

• Why
• There is immense potential for companies to retrofit existing solutions, integrate new technologies through partnerships, to meet the unique needs and physical challenges of the disabled and elderly, while also building revenue streams by catering to a wider audience.
• Frost Perspective
• Toyota Motor Corporation's 2022 Lexus LS500h with driver-assistance systems, for example, included features which automatically navigate the car to the side of a highway on sensing driver incapacitation. This feature was seen to be especially attractive to senior citizens who purchase cars, given the priority.

Industry Convergence: Cross-Industry and Tech Collaborations to Help Companies Thrive in a Competitive Environment

• Why
• There is great potential for industry convergence in the care space to revolutionize care delivery and provide inclusive services.
• Industry convergences across healthcare, technology, retail, and more are vital in delivering value-added care economy services.
• Frost Perspective
• Walmart Inc.'s 2024 pilot collaboration with the Aira mobile app, for example, remotely connects visually-impaired shoppers with sighted guides, making way for a more inclusive shopping experience.

Scope of Analysis

• The care economy refers to the economy which caters to the needs of care-dependent groups, through physical, social care and more.
• Below are components to the care economy definition, as gathered from various sources:
• With regards to care-dependent groups, most include children, sick, elderly, and disabled, while some also include adolescents and working-age persons.
• Most sources include both paid as well as unpaid care within the scope of the care economy.
• Some sources only include direct care activities (e.g., nursing the sick, feeding a child), while some also include indirect care activities (e.g., cleaning, cooking).
• For this study, the care economy has been defined as: paid as well as unpaid direct care of care-dependent groups including children, sick, elderly, and the differently-abled, both inside as well as outside the home.
• While the Frost & Sullivan definition includes both paid as well as unpaid care, majority of the analysis in this piece focuses on paid care.
• E refers to estimate and F refers to forecast in the study.

Growth Drivers and Restraints

Burgeoning Global Care-Dependent Population; Fast-Growing Elderly Cohort

• The global care-dependent population will grow from 4.1 billion persons to 4.6 billion persons or to 3.2 billion persons.
• The elderly population will grow at a higher compound annual growth rate than other groups, with the 65 years and above population growing and the 80 years and above population growing at a rate. Companies will consequently accelerate the roll-out of age tech solutions.

Growing Policy Support for the Care Economy

• Governments and corporations are launching conducive policy measures targeted at increasing the care workforce, supporting additional care during parental leave and more.

Disproportionate Burden of Unpaid Care on Women

• Women outside the workforce are disproportionately affected by caregiving.
• The unpaid burden of care limits women from joining the paid care workforce, also contributing to care worker shortages.

Care Worker Shortages and Low Care Worker Wages

• The World Health Organization forecasts a shortage of healthcare workers across the world.
• Data also indicates that certain occupations place home health and personal care aides within the occupational groups with lowest pay.