Home Healthcare Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global home healthcare market growth forecasted to transform from USD 250 billion in 2023 to USD 383 billion by 2028, driven by a CAGR of 8.9%. Growth in this market is driven primarily by rapid growth in the elderly population and the rising incidence of chronic diseases, growing need for cost-effective healthcare delivery due to the increasing healthcare costs, and technological advancements of home care devices. On the other hand, changing reimbursement policies, limited insurance coverage, and concerns regarding patient safety are factors limiting the growth of the market to a certain extent.

Home Healthcare Market Size, Dynamics & Ecosystem

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Home Healthcare Market Dynamics

Driver: Sharp increase in the number of older people and the prevalence of chronic illnesses

According to UN Department of Economic and Social Affairs, the number of people over 65 in the globe is expected to increase from 771 million in 2022 to 1.6 billion by 2050. Furthermore, it is projected that the number of individuals 80 years of age and above will triple by 2050 compared to the current figure of 143 million in 2019. Because the elderly population is more prone to chronic illnesses, its growth will increase healthcare demand and place a considerable burden on governments and health systems; as a result, the home healthcare sector will profit. Getting medical care at home reduces the number of avoidable hospital stays, readmissions, and the time and cost of traveling to visit experts.

Opportunity: Growing focus on newer technologies such as telehealth

Telehealth allows home healthcare providers to remain influential even when they are not present in person. It enables ongoing patient monitoring and the early detection of impending catastrophes. Telehealth includes virtual medical, health, and educational services as well as remote patient monitoring. During virtual sessions, doctors and nurses can examine a patient's condition and determine the best course of action, which may involve providing care, issuing a prescription, or, in certain cases, sending the patient for extra treatment, using audio-visual technologies. For these reasons, patients are benefiting from telehealth more and more.

Restraint: Limited insurance coverage

The majority of countries in North America offer insurance coverage for home healthcare services; however, this coverage is limited to home healthcare organizations that have received Medicare certification. Equipment used for multi-parameter monitoring, telemetry, rehabilitation, or remote monitoring is not covered by insurance. Both in North America and Europe, insurance coverage for this equipment varies. Insurance companies in Asian countries such as India only pay for post-hospitalization therapy, not for in-home healthcare treatments for the elderly or chronic illnesses.

Challenge: Shortage of homecare workers

There is a great need for homecare workers in the booming home healthcare sector. The US Bureau of Labor Statistics has projected employment trends for the home healthcare industry for the years 2014–2024, and personal care aides and home health aides rank among the top 10 positions in this sector. Furthermore, there is anticipated to be a demand for 924,000 personal care and home health aides between 2021 and 2031. Because of this, home healthcare providers must find about 924,000 new patients in order to fulfill the rising demand (Source: US Bureau of Labor Statistics).

The market is moderately consolidated. The top players— Fresenius SE & Co. KGaA (Germany), Abbott (US), Ge Healthcare (US), Koninklijke Phillips NV. (Netherlands), ResMed, Inc. (US), Linde, Plc (Ireland), and F.Hoffmann-La Roche, Ltd. (Switzerland)-in the market accounted for a combined majority market share in 2022. The companies in the sector are fiercely competitive. Big businesses are the only ones that can afford significant capital expenditures, high R&D and manufacturing costs. This will stop new competitors from joining this market.

Home Healthcare Market Segmentation & Geographical Spread

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Therapeutic products segment accounted for the largest share of the home healthcare industry, by products

The home healthcare market is divided into three segments based on products: mobility care items, therapeutic products, and products for testing, screening, and monitoring. By 2022, the market for home healthcare goods was led by the therapeutic sector. The need for home healthcare treatment equipment has increased due to the rising prevalence of chronic illnesses such kidney failure and respiratory infections.

Skilled nursing services segment accounted for the largest share in the home healthcare industry, by service

The skilled nursing, rehabilitation therapy, hospice & palliative care, unskilled care, respiratory therapy, infusion treatment, and prenatal care services are the several service categories that make up the home healthcare market. In 2022, skilled nursing services held the most market share for home healthcare. Getting expert medical care at home can be a more consoling option than being in a hospital, assisted living facility, or nursing home. Over the course of the projection period, the market's expansion is anticipated to be supported by the excellent insurance coverage for skilled nursing services.

Other indications segment accounted for the largest share in the home healthcare industry, by indication

The home healthcare market is divided into indications such as wound care, diabetes, cancer, respiratory illnesses, mobility disorders, cardiovascular diseases & hypertension, pregnancy, hearing abnormalities, and other indications. In 2022, the home healthcare market's greatest share belonged to the other indications category. HIV infections are on the rise and sleep difficulties are highly prevalent, which is the main reason for this segment's size.

North America is the largest regional market for home healthcare industry.

Home healthcare markets throughout the world are divided into four regions: North America, Europe, Asia Pacific, and the Rest of the World. North America led the world's home healthcare industry in 2022, with Europe following closely behind. The increased prevalence of chronic illnesses and high healthcare costs are the main reasons for North America's significant market share in the global economy. On the other hand, throughout the course of the forecast period, the Asia Pacific market is anticipated to develop at the highest CAGR. The aging population and technology improvements are the main drivers of growth in the Asia Pacific home healthcare market.

The major players in home healthcare market are Fresenius SE & Co. KGaA (Germany), Abbott (US), GE HealthCare (US), Koninklijke Phillips NV. (Netherlands), ResMed, Inc. (US). The market leadership of these players stems from their comprehensive product portfolios and expanding global footprint. These dominant market players possess several advantages, including strong marketing and distribution networks, substantial research and development budgets, and well-established brand recognition.

Home Healthcare Market Report Scope

This report categorizes the home healthcare market to forecast revenue and analyze trends in each of the following submarkets:

By Product

• Therapeutic Products
• Testing, Screening, and Monitoring Products
• Mobility Care Products

By Service

• Skilled Nursing
• Rehabilitation Therapy
• Hospice & Palliative Care
• Unskilled Care
• Respiratory Therapy
• Infusion Therapy
• Pregnancy Care

By Indication

• Cancer
• Respiratory Diseases
• Movement Disorders
• Cardiovascular Diseases & Hypertension
• Pregnancy
• Wound Care
• Diabetes
• Hearing Disorders
• Other Indications

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Rest of Asia Pacific
• Rest of the World
  • Latin America
  • Middle East Africa

Recent Developments of Home Healthcare Market

• In August 2022, Fresenius Medical Care North America (FMCNA) acquired InterWell Health Brand (US) to expertise in kidney care value-based contracting and performance.
• In August 2022, Contessa (US) partnered with Mount Sinai Health System (US) offers a full continuum of home-based care that includes home health, hospitalization at home, rehabilitation at home (in lieu of care at a skilled nursing facility) and palliative care at home.
• In July 2022, Invacre Corporation (US) introduced Next Generation e-fix eco Power Assist Device to Transform the Manual Wheelchair.

Frequently Asked Questions (FAQ):

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