Global Ambient Assisted Living (AAL) Market - Growth, Trends, and Forecasts (2022 - 2027)

The Global Ambient Assisted Market is expected to grow at a CAGR of 21.6% over the forecast period (2022-2027). The ambient assisted living (AAL) market is a new trend combined with smart homes. It is a system that offers assistance and support to the aged population. The ambient assisted living systems are designed to assist old and differently-abled populations with independent living. With the increase of age, the risk of health also increases, so there is a need for continuous monitoring and medical assistance for elder people.

Key Highlights

• According to United Nations, Globally, the number of people over 80 was projected to increase more than threefold between 2017 and 2050, rising from 137 million to 425 million. Additionally, the global population is aging faster, and the numbers are higher in certain regions and countries. For instance, according to the UN, Europe has the highest percentage of the aging population, as compared to the total population in the country, followed by North America. Such a rise in population aging will drive the market.
• With the advent of IoT and growing internet penetration, various AAL solutions and services, such as telehealth, telecare, telemedicine, telecoaching, and mHealth, are gaining traction. Also, physicians' acceptance of digital healthcare tools in their practices is increasing, owing to improved efficiency and safety. According to a study by MobiHealth, In 2021, 51% of respondents said they had utilized live video telemedicine before, up 8% points from 2020 and 19% from 2019.
• Previously, the costs associated with AAL services were comparatively higher, as a number of services, such as monitoring, collecting data and samples, diagnosis, and check-ups, were done manually, requiring either the doctor or the patient to travel. The costs associated with such care have decreased with the latest technological innovations. For instance, according to a study by RAND Corp., in the United States, an appointment via telemedicine costs USD 79, on average, as compared to USD 146 for doctor's office visits and USD 1,734 for an emergency room visit.
• Telemedicine, a part of AAL, had been witnessing lower acceptance rates among the elderly, as they preferred in-person care to telehealth. However, the recent proliferation of technology and the outbreak of COVID-19 have increased consumer propensity toward telemedicine solutions. For instance, according to a study by American Well, over 52% of Americans over 65 years were willing to use telehealth, with lead motivating factors identified as faster service, time savings/convenience, cost savings, and better access to healthcare professionals.
• Various healthcare enterprises and research institutes are increasingly undertaking studies to find applications and solutions, such as IoT, to assist and assist elderly and vulnerable people. For instance, scientists at Heriot-Watt University are testing technology to enable elderly and vulnerable people in a purpose-built flat-cum-assisted living laboratory. The research team is working with the industry and care providers for solutions using IoT sensors, wearable devices, robotics, artificial intelligence, and other technologies focused on AAL.

Key Market Trends

Increasing Chronic Diseases and Growing Aging Population are Expected to Drive the Market Growth

• The geriatric population is more inclined to chronic diseases. According to Oxford, over the next few decades, the share of the French population aged 65 and older will increase steadily, reaching about 25% in 2030 and nearly 30% in 2050. As the number of the elderly population is anticipated to increase in the near future, this population is more susceptible to chronic conditions such as cardiovascular, musculoskeletal, and other diseases, which might positively impact the market. ​
• With the increasing geriatric population, China has been witnessing a significant increase in the number of patients that are suffering from chronic diseases. According to the World Population Ageing 2019 report, in China, the population aged above 65 years or above is projected to reach 246.98 million by 2030 from 164.48 million in 2019. ​
• The world is observing a significant increase in chronic diseases, especially hypertension, diabetes, and respiratory problems. According to IDF, in 2019, 463 million adults were living with diabetes, and by 2045 this is expected to increase to 700 million. 1 in 5 people above 65 years of age has diabetes. ​
• In addition, 235 million people have asthma, which is common among children, according to WHO. More than 3 million people die of COPD yearly, an estimated 6% of all deaths worldwide. In addition to this, an estimated 1.13 billion people worldwide have hypertension.​
• Chronic respiratory and cardiovascular diseases among the elderly are increasingly becoming prevalent. According to the American Heart Association (AHA), about 43.7 million Americans aged 60 and above have one or more cardiovascular disease types, such as stroke, heart attack, or heart failure. About two-thirds of cardiovascular disease deaths occur in people aged 75 and older.​

United States is Expected to Hold Major Share

• According to Population Reference Bureau, The world's aging population is predicted to have a considerable impact on the demand for energy-saving and low-carbon emission-oriented solutions, which is most likely to propel the market's expansion throughout the forecast period. According to projections, the number of Americans 65 and older will nearly double from 52 million in 2018 to 95 million by 2060, increasing their percentage of the overall population from 16% to 23%.
• Further, In ambient assisted living, an entertainment system is a collection of interconnected electronic gadgets that offer users entertainment, communication, and other services. Usually, the plans come with a TV, stereo, and other media players. They might also have features for home automation, game consoles, and internet access. In ambient assisted living (AAL), a transportation system is a service that makes it easier for the elderly and disabled to travel around. It can be utilized for social activities, appointments, errands, and shopping. AAL provides door-to-door transportation services, which means the driver will pick up from home and deliver it to the destination.
• Multiple smart appliances are undergoing various certification programs. For instance, in April 2021, The ioXt Alliance, the Global Standard for IoT Security, announced that international household appliance manufacturer Midea had certified seven appliances through the ioXt Certification Program. Currently, most smart home devices and solutions are point devices, which implies no integration among devices, as each device uses its application to function.
• Apart from enterprises operating in the healthcare and medicare industries, mainstream, wearable solution vendors are also increasingly incorporating various health monitoring and fall detection capabilities. For example, Apple offers fall detection as part of its latest smartwatch solutions. Such developments are expected to increase over the coming years.
• With the growing penetration of wearables and connected technology, AAL services related to assistance, such as fall support, emergency services, sample collection, and monitoring, are slowly gaining traction. For example, a user's life was saved by Centra Plus when the user pressed her pendant, which links to an alarm unit when the older women's home was engulfed in fire and as she was unable to move and get out of the house.

Competitive Landscape

The market is moderately fragmented, with smaller vendors concentrated in countries with higher demand. The competitive strategy among vendors is to gain a foothold in the market, with innovation and the capability of investing in R&D by significant vendors being on the higher side. Thus, competition in the market is intensifying. In the services segment, enhancing the capabilities with the help of technologies is expected to increase and become part of players' competitive strategies. ​

• September 2022: ​New, inexpensive sensors that track breathing, heart rate, and ammonia have been incorporated by Imperial researchers into face masks and t-shirts. Applications could include tracking stress, exercise, and sleep as well as detecting and monitoring disease through breath and vital signs. The sensors are inexpensive to produce because they are spun from a brand-new cotton-based conductive thread called PECOTEX, created by Imperial. PECOTEX is compatible with industry-standard computerized embroidery machines and costs just USD 0.15 per meter of thread, which may be used to incorporate more than ten sensors into clothes effortlessly.
• August 2022: The remote patient monitoring (RPM) solution from the mobile health technology company UTM: Healthcare has improved connectivity thanks to introducing new biometric sensors with better data transmission capabilities. In order to be compatible with cellular-enabled blood pressure monitors, blood glucose meters, and pulse oximetry devices, UTM: Healthcare has improved its UTM: RPM solution.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support