The global home healthcare market was valued at USD 302 billion in 2022 and is expected to reach around USD 786.85 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 10.1% during the forecast period 2023 to 2032.
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Home healthcare refers to a variety of medical services that can be provided in the comfort of a patients’ own home to treat a sickness or accident. A patient's options for receiving home health care services are virtually endless. Care can range from nursing to specialized medical treatments, such as laboratory workups, depending on the individual patient's circumstance. The treatment plan and any treatments that the patient may require at home will be determined by the doctor. The duration of home healthcare can be short-term to long-term, depending on the health of the patient.
There are different types of home healthcare services available:
Home healthcare may or may not be prescribed by the doctor. In cases where it is prescribed by the doctor, these services are generally covered by the insurance company.
Devices such as blood pressure monitoring devices, glucose monitoring devices, and other therapeutic & diagnostic devices are also classified under home healthcare. The scope of the home healthcare market covers devices as well as services.
The rising percentage of geriatric patients across the world especially in developed countries like Germany, France, Japan, and the United States is considered as one major driving factor which promotes the growth of home healthcare market.
According to WHO, it is estimated in between 2015 to 2050, population above 60 years will approximately double from 12% to 22% across the globe. As per the study, it is also observed that each elder patient suffered from at least two or more major chronic disorders which further fuels the growth of the market. In addition, the rising demand for advanced healthcare services followed by high acceptance from the end-users is considered significant influence for the market growth.
The unhealthy aging of individuals will bring a huge opportunity for the healthcare services market. Recently, the rising penetrations of technology in the field of healthcare services followed by the delivery system are seen as a encouraging factor for the growth of the market. Rising investment in the upcoming technology followed by penetration of Artificial intelligence in healthcare is one of the major factors which will bring huge opportunities within the forecast period.
Developing countries with a mass population like India, China, Indonesia, Brazil, and others still need a good amount of time to develop and adapt themselves in the field of healthcare to become equivalent to developed countries. According to WHO, Counties like India lack the geriatric population and still need 20 more years to reach nearer to France.
COVID-19: Home healthcare industry impact
The COVID-19 pandemic has had a mixed impact on the global home healthcare market. The two branches of the market, i.e., devices and services have had different impacts. COVID-19 has positively impacted the sale of certain home healthcare products such as blood pressure monitoring devices, pulse oximeters, blood glucose monitoring devices, and temperature monitors. People around the world are increasing the purchase of these items due to the rising awareness regarding potential complications in case of infection. Thus, the pandemic has resulted in driving the sales of the home medical device market.
Companies are also undertaking initiatives to offer care at home. For instance, Lincare, a subsidiary of Linde plc, started offering home respiratory care to vulnerable patients in the US. The company is also easing the burden of hospitals by transferring inpatient respiratory patients from hospitals to home.
On the other hand, the home healthcare services market has witnessed a notable decline due to various factors such as patient fear of contracting the virus due to contact, elimination of non-emergency elective surgeries, and availability of family members due to extended lockdowns and work from home culture. Several home healthcare service providers and agencies have reported a decline in their services since the pandemic. The continuation of the pandemic in 2021 with the second-and third-wave of the virus coupled with lockdowns is expected to continue impacting the market.
Nonetheless, home healthcare service companies have extended their offerings for post-COVID recovery patients. In certain geographies, home healthcare service providers are treating stable COVID-19 patients to aid overburdened hospitals. As a case in point, the Visiting Nurse Service of New York, a home care provider, delivered care to stable coronavirus patients in New York. However, several home healthcare providers are struggling to procure personal protection equipment (PPE) due to high demand from hospitals and low supply, thus limiting their business. Home healthcare service providers are now focusing on adapting to the pandemic by being responsive towards new business demands. Home healthcare will play a pivotal role in the coming future due to a largepatient pool.
|Market Size in 2023
|USD 330.99 Billion
|Market Size by 2032
|USD 786.85 Billion
|Growth Rate from 2023 to 2032
|CAGR of 10.1%
|Fastest Growing Market
|2023 to 2032
|Type, Device, Services, Region
McKesson Medical-Surgical Inc., Fresenius Medical Care, Medline Industries, Inc., 3M Healthcare, Baxter International Inc., Medtronic PLC, B. Braun Melsungen AG, Molnlycke Health Care F. Hoffmann-La Roche AG, Arkray, Inc., Becton
The rising aging population & nuclear homes drive the need for home healthcare
Almost every country in the globe is seeing an increase in the number of older people and the proportion of them in their population. In 2019, the world's population of people aged 65 and up totaled 703 million. In 2050, the number of elderly people is expected to increase to 1.5 billion. The proportion of the world's population aged 65 and up went from 6% in 1990 to 9% in 2019. By 2050, that percentage is expected to climb to 16%, implying that one in every six individuals on the planet would be 65 or older.
Eastern and South-Eastern Asia, as well as Latin America and the Caribbean, have the fastest-aging populations. In Eastern and South-Eastern Asia, the percentage of people aged 65 and up about doubled from 6% in 1990 to 11% in 2019, and in Latin America and the Caribbean, the percentage of people aged 65 and up about doubled from 5% in 1990 to 9% in 2019. In four regions, Northern Africa and Western Asia, Central and Southern Asia, Latin America and the Caribbean, and Eastern and South-Eastern Asia, the proportion of older people are expected to treble between 2019 and 2050.
In the years 2015-2020, a 65-year-old person should expect to live a further 17 years on average over the world. That figure will have risen to 19 years by 2045-2050. In all countries, life expectancy at 65 is expected to rise between 2015 and 2020 and 2045-2050. Women presently outlive males by 4.8 years, but this disparity is likely to close over the next three decades.
The level of population aging appears to be dependent on age patterns of output and consumption, according to indicators that combine both demographic and economic data. The economic old-age dependency ratio, which combines measured levels of consumption and output by age, reveals that population aging has the largest influence on nations or areas with large numbers of older people and high levels of old-age consumption, such as Europe and Northern America, as well as Australia and New Zealand.
Increasing healthcare costs to drive the demand for affordable home health treatments
Healthcare costs are increasing all around the world due to advancements in technology, the complexity of procedures, multiple illnesses in patients, changing government policies, high insurance premiums, and limited coverages. For instance, healthcare costs have risen dramatically in the US over the past several decades. The American Medical Association (AMA) identified three key factors driving healthcare costs, viz., population growth, population aging, and rising prices. Besides these, disease prevalence or incidence of medical service utilization are other vital factors fueling healthcare costs as well.
As the population grows older and lives longer, healthcare becomes more expensive. As a result, rising service expenses, particularly inpatient hospital care, accounted for half of the growth in healthcare spending. Additionally, population increase (23%) and population aging are the two most important elements driving up such spending (12%).
Average yearly rates for family coverage for those with employer-provided healthcare increased by 37% from USD 15,545 in 2015 to USD 21,342 in 2020 for those with employer-provided healthcare. Meanwhile, from 2015 to 2020, average unsubsidized family premiums for the Affordable Care Act (ACA) increased by 97%, from USD 8,724 to USD 17,244.
Increased insurance prices are simply one part of the equation. Americans are spending more money out of pocket than they have in the past. High-deductible health plans (HDHPs), which impose out-of-pocket fees of up to USD 14,000 per family, have increased the cost of healthcare significantly. Employer payments to HDHPs help to offset the higher deductible, and according to one study from 2018, HDHP members paid 20% of their total premium, whereas PPO participants paid up to 27%.
Medicare and Medicaid, for example, have increased total demand for medical services, resulting in higher pricing. Increases in the cost of medical treatment have been directly correlated with increases in the incidence of chronic illnesses such as diabetes and heart disease, particularly among seniors.
Lack of Skilled Nursing Professionals
There has been a shortage of nursing staff which leads to limitation of growth of home healthcare market in developing countries like India. This shortage is primarily due to the insufficient number of qualified nurses available to meet the increasing demand for home-based healthcare services. According to an estimate India’s health workforce density is high than WHO recommended threshold of 44.5 skilled health workers per 10,000 people. However, despite the relatively high overall workforce density, there remains an imbalance in the distribution of healthcare professionals. Skilled nursing professionals are often concentrated in urban areas, leaving rural and remote regions underserved. In home healthcare, face to face interaction is low between doctor and nurse. Nurses often take on a more autonomous role, including conducting patient assessments and sharing their findings with the patient's primary care physician. This reduced direct supervision impairs the need for highly skilled and autonomous nurses in the home healthcare setting.
Moreover, In India, there is no coverage of insurances companies for home healthcare treatments for generic and chronic conditions which is hindrance to the growth of the home healthcare market in India. Insurance companies typically focus on post-hospitalization treatments, while many patients require ongoing care at home. This financial barrier can deter patients from seeking home-based healthcare services, limiting the market's expansion.
The home healthcare sector has a significant opportunity for remote patient monitoring, or RPM. RPM uses technology to gather and send health information from patients' homes to medical professionals, which has several benefits. RPM makes it possible for patients to have continuous monitoring for chronic illnesses, which improves early problem detection and intervention and, in the end, improves patient outcomes and disease management. Additionally, it lowers ER visits and hospital readmissions, which saves a lot of money. In addition, RPM makes healthcare more accessible to underserved or remote locations, supports individualized treatment based on real-time data, promotes patient involvement, and ultimately turns out to be cost-effective. In order to effectively benefit of this potential, home health care providers require technological and personnel training investments, work with device manufacturers, and guarantee compliance with data privacy laws. Therefore, Adopting RPM leads several opportunities for market growth and development in healthcare delivery by enabling providers to provide better patient care, lower costs, and increase accessibility to healthcare services.
The devices segment accounted for the largest market share of the global home healthcare market 85% in 2022. Although the home healthcare services market accounted for 18% in 2022, the segment is expected to lose its market share to devices due to the increasing demand for home dialysis machines, blood glucose monitoring devices, and thermometers, among others. The decreasing demand for nurses due to the fear among patients regarding contracting coronavirus infection is expected to adversely affect the growth of this segment.
The services segment is projected to reach a CAGR of 14.8% over the forecast period 2023 to 2032. Home healthcare services can encompass a wide range of services provided by trained medical personnel, such as skilled nursing, physical therapy, occupational therapy, and speech therapy. Home health care can also include non-medical services such as medical social services or daily living assistance from a highly trained home health assistant.
The deivce type is segmented into diagnostic & monitoring devices, therapeutic devices, and home mobility assist devices. The home mobility assist devices accounted for the largest market share 45% in 2022, due to the high demand for walkers, crutches, wheelchairs, and canes. During the forecast period, the market share is expected to shift with home mobility assist devices losing their market share to diagnostic & monitoring devices. Rising patient awareness regarding regularly monitoring their health, amidst the pandemic, is expected to drive sales.
Home Healthcare Market Share, By Device, 2022 (%)
|Diagnostic & Monitoring Devices
|Home Mobility Assist Devices
Mobility aids are gadgets that allow people with mobility issues to have more flexibility and independence. Mobility aids are typically used by people with disabilities or injuries, as well as elderly adults who are at risk of falling. Users benefit from these gadgets in a variety of ways, including more freedom, reduced discomfort, and enhanced confidence and self-esteem. From canes and crutches to wheelchairs and stairlifts, a variety of mobility equipment is available to accommodate people's needs.
Despite the abundance of assistive technologies available, a large percentage of ATs are rejected by consumers. The lack of an acceptable design is one element driving this rejection. As a result, there is a pressing need for research and development that is driven by the needs of users and the setting.
The diagnostic & monitoring devices segment is set to reach at a CAGR of 16% during the forecast period.
Based on service, the market is segmented into rehabilitation, telehealth, respiratory therapy, infusion therapy, unskilled homecare. The telehealth segment will hit 42% CAGR during the forecast period.
In 2022, rehabilitation services accounted for the largest market share 50% within the global home healthcare services market due to its extensive use for post-op recovery. However, telehealth is expected to witness exponential growth over the forecast period due to the increasing consumer adoption of using mobile phones to access healthcare services. The norms of lockdown and social distancing due to the COVID-19 pandemic are expected to fuel the growth of this segment.
The report is broadly classified into five regions, North America, Europe, Asia Pacific, Latin America and the Middle East, and Africa. North America heavily invested in the home healthcare segment and thus contributed the largest market share in the year 2022. It is estimated that the same region contributes more than 43% of the market share. United states captured more than 75% of the total North American region.
Few other market influencers include technological advancement, advanced medical infrastructure, and increasing per-capita healthcare expenditures. As per the study, the U.S. holds the patients with the largest treatment affordability for chronic disorders. In Europe, the demography of the countries like Germany, France, UK, Italy, and Spain held the largest market share in the year 2019. Asia Pacific is also keenly focused on developing advanced healthcare infrastructures and due to burden of number of patients with diabetes, obesity, cardiovascular diseases, and others.
Some of the significant players:
Service Providers: -
This research report estimates revenue growth at global, regional, and country levels and offers an analysis of present industry trends in every sub-segment from 2020 to 2032. This research study analyzes market thoroughly by classifying global home healthcare market report on the basis of different parameters including type, device, services, and region:
By Regional Outlook
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