The global long-term care (LTC) market, valued at $1.11 trillion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 6.68% from 2024 to 2030, according to Grand View Research. This robust growth is driven by several key factors, including the increasing global geriatric population, rising life expectancy, and the growing prevalence of chronic diseases. Additionally, technological advancements and strategic initiatives by market players are set to further propel the industry.
Rising geriatric population and unmet needs
The world's aging population is a significant factor driving the demand for long-term care services. As life expectancy increases, so does the need for extended care, particularly among the elderly who often face chronic health issues. According to a 2022 study published in the BMC Journal, approximately 10.4% of the global elderly population had unmet healthcare needs, including long-term care. This gap in care highlights the critical role LTC services play in improving the quality of life for older adults.
Governments worldwide are increasingly focusing on reforming healthcare systems to accommodate the needs of their aging populations. In the United States, for example, the Medicare and Medicaid systems provide crucial support for the elderly, ensuring access to necessary long-term care services. As these reforms continue, the LTC market is expected to experience substantial growth during the forecast period.
Chronic diseases and the demand for specialized care
Chronic diseases such as cancer, diabetes, Alzheimer's, and heart conditions are prevalent among the elderly, further fueling the demand for long-term care facilities. These facilities offer specialized services tailored to the needs of older adults, providing an alternative to traditional hospitals, which can be expensive and resource-intensive. The growing awareness of the benefits of LTC centers over hospitals is expected to drive market expansion.
Moreover, the LTC industry is evolving to meet the specific needs of the aging population. Initially, long-term care relied heavily on durable medical equipment like walkers and wheelchairs. However, recent advancements in healthcare delivery technology have introduced more sophisticated, user-friendly products and services. Innovations such as internet-enabled home monitoring, telemedicine, and mobile health apps are increasingly being integrated into long-term care, enhancing the quality and accessibility of services.
Impact of the COVID-19 pandemic
The COVID-19 pandemic had a profound impact on the long-term care industry, particularly due to the vulnerability of older adults to the virus. Many LTC facilities faced significant challenges, including a reduction in services and restrictions on activities. According to a December 2021 report by the Organisation for Economic Co-operation and Development (OECD), approximately 40% of COVID-19 deaths in OECD countries occurred in LTC facilities. The pandemic also highlighted the critical shortage of nursing staff, particularly in nursing homes.
Despite these challenges, the long-term care market is expected to recover and grow, driven by the increasing adoption of telehealth technologies. Telehealth enables LTC providers to deliver medical care remotely, reducing the need for emergency admissions and allowing real-time monitoring of patients by healthcare professionals. The shift towards telephonic consultations during the pandemic has also created new opportunities in the market.
Market concentration and innovation
The long-term care market is characterized by a low to moderate level of merger and acquisition (M&A) activity. Key players such as Almost Family, Inc., Brookdale Senior Living, Inc., and Extendicare, Inc. are actively involved in expanding their geographical footprint through strategic acquisitions. These companies are also focusing on innovation, developing new technologies, care models, and personalized approaches to meet the evolving needs of the elderly population.
Emerging alternatives to traditional institutionalized care, such as home healthcare services and technologically assisted remote solutions, are gaining traction. These alternatives cater to the growing preference for aging in place, offering personalized care in the comfort of one's home. As a result, companies are increasingly pursuing regional expansion strategies to meet the rising demand for elderly care services in specific geographic areas.
Service and regional insights
In 2023, the nursing care segment held the largest share of the long-term care market, accounting for over 31.73%. This dominance is attributed to the high demand for elderly care, particularly in developing countries, where the geriatric population and chronic disease incidence are rising. The home healthcare segment is also experiencing significant growth, driven by the demand for personalized care and cost-effective solutions.
North America dominated the global long-term care market in 2023, with a share of 48.86%. The region's strong market position is due to the availability of LTC centers, improving reimbursement frameworks, and favorable government policies. The U.S., in particular, has a well-established LTC infrastructure, with an estimated 5.8 million people using paid LTC services in 2020, according to the Kaiser Family Foundation.
The global long-term care market is poised for significant growth over the next decade, driven by an aging population, rising chronic disease prevalence, and advancements in healthcare technology. As governments and healthcare providers continue to innovate and expand services, the long-term care industry will play an increasingly vital role in meeting the needs of the world's elderly population.
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