Global Long Term Care Market By Service (Nursing Care, Assisted Living Facilities, Hospice, and Home Healthcare), By Payer (Public, Private, and Out-of-Pocket), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Long Term Care Market size is expected to be worth around USD 2142.4 billion by 2033 from USD 1120.1 billion in 2023, growing at a CAGR of 6.7% during the forecast period 2024 to 2033.

The global geriatric population’s growth is a key driver for the long-term care (LTC) market. Longer life expectancy also fuels the demand for services. Unmet needs among older adults contribute to industry growth. According to a December 2022 article in the BMC Journal, approximately 10.4% of elderly individuals worldwide lacked adequate healthcare, including LTC. By providing personalized care at home, unnecessary hospitalizations are avoided, benefiting patients in terms of cost and quality of life.

Governments worldwide are under pressure to address the needs of their aging populations, leading to healthcare system reforms. The LTC market is expected to grow due to support from U.S. government programs like Medicare and Medicaid. As chronic diseases become more prevalent globally, LTC facilities play a crucial role. Elderly individuals not only face age-related disabilities but also suffer from conditions like cancer, diabetes, Alzheimer’s, and heart problems.

Hospitalization for chronic diseases can be costly and inefficient, making specialized LTC services an attractive alternative to traditional hospitals. The market’s anticipated growth stems from increased awareness of LTC centers and their advantages.

Key Takeaways

• Market Size: The Long Term Care Market size is expected to be worth around USD 2142.4 billion by 2033 from USD 1120.1 billion in 2023
• Market Growth: The market growing at a CAGR of 6.7% during the forecast period 2024 to 2033.
• By Service Analysis: The nursing care segment led in 2023, claiming a market share of 32.4% due to the preference for elderly care and strong demand from developing countries.
• Application Analysis: The public held a significant share of 46.1% due to the high public spending by the U.S. and European countries.
• Regional Analysis: North America dominated the market with the highest revenue share of 43.7% in 2023.
• Aging Population: The increasing elderly demographic is a major growth driver, raising the demand for long-term care services​
• Technological Integration: Advances in technology, particularly in home healthcare, are boosting market expansion​.
• Challenges: A significant challenge is the shortage of skilled nursing staff, which could limit market growth​.

By Service Analysis

The nursing care segment led in 2023, claiming a market share of 32.4% due to the preference for elderly care and strong demand from developing countries. As the geriatric population grows and chronic diseases like heart problems, Alzheimer’s, and cancer become more prevalent, the need for nursing care continues to rise. Home healthcare is particularly popular among individuals aged 65 and older, recent hospital discharges, mentally challenged adults, new mothers, and those seeking medical assistance for their parents at home.

The increasing demand for personalized LTC at home, along with cost-effectiveness, drives growth in the home healthcare segment. Suppliers are also introducing advanced technologies and software to enhance the quality of services provided to meet the rising demand for home healthcare.

By Payer Analysis

The public held a significant share of 46.1% due to the high public spending by the U.S. and European countries. The presence of government-funded initiatives, such as Medicare and Medicaid further propel the growth of this segment. As the elderly population increases globally, the demand for long-term care services rises. Government healthcare reforms aimed at providing affordable services for the elderly also contribute to this growth.

Key Market Segments

By Service

• Nursing Care
• Assisted Living Facilities
• Hospice
• Home Healthcare

By Payer

• Public
• Private
• Out-of-Pocket

Drivers

Increasing Prevalence of Chronic Diseases

due to the escalating burden of chronic diseases worldwide. LTC caters to both medical and non-medical needs of individuals with chronic illnesses or disabilities who require extended assistance. Conditions like heart disease, cancer, and diabetes are significant contributors to mortality and disability, as highlighted by the U.S. Centers for Disease Control and Prevention (CDC). LTC encompasses a wide range of conditions, including cardiovascular diseases, metabolic disorders, mental health issues, and terminal illnesses.

As chronic diseases such as Alzheimer’s, diabetes, and cardiovascular conditions become more prevalent, the demand for specialized and continuous care provided by nursing homes and LTC facilities is on the rise. These facilities are well-equipped to manage the complex medical and personal requirements of individuals with chronic illnesses. They offer tailored treatment plans, ongoing monitoring, and therapeutic interventions, ultimately leading to improved health outcomes and better quality of life for patients. Given the growing population affected by chronic diseases, these facilities play a crucial role in healthcare.

According to the Cancer Statistics, 2024 report published by the American Cancer Society, it is projected that approximately 2,001,140 new cancer cases will emerge in 2024. Additionally, an estimated 611,720 deaths in the United States will be attributed to cancer during the same year.

Restraints

Lack of Qualified Healthcare Professionals

The demand for skilled nurses, therapists, and aides often exceeds the available supply, leading to challenges in maintaining adequate staffing levels. Unfortunately, this shortage can compromise the quality of care provided to residents, affecting their overall well-being and satisfaction. Moreover, understaffing contributes to increased workloads, staff burnout, and higher turnover rates, further exacerbating the staffing issues.

These constraints hinder nursing homes and long-term care facilities from meeting the complex healthcare needs of their residents, potentially limiting their ability to expand services or improve operational efficiency.

Opportunities

Rise in Geriatric Population

driven by the expanding geriatric population and a growing focus on geriatric care. The demand for LTC has increased because hospital systems often fail to meet the unmet needs of the elderly. According to the World Health Organization (WHO), by 2030, one in six people worldwide will be aged 60 or older, and the global population of individuals aged 60 and above will double to 2.1 billion by 2050.

Additionally, the number of people aged 80 or older is expected to triple between 2020 and 2050, reaching approximately 426 million. As life expectancy rises and the baby boomer generation reaches retirement age, the number of elderly individuals requiring long-term care is growing significantly.

This demographic shift leads to higher demand for residential care services that provide medical assistance, daily living support, and social engagement for seniors. Nursing homes and long-term care facilities are expanding to meet these needs, making the aging population a critical factor in market growth.

Impact of Macroeconomic / Geopolitical Factors

Macroeconomic and geopolitical factors exert a significant influence on the long term care market, shaping its growth trajectory and dynamics. Macroeconomic factors such as economic downturns and inflation can negatively impact the long-term care market By reducing government funding and increasing operational costs. Geopolitical tensions and trade wars can also disrupt supply chains and increase costs.

However, a growing middle class in emerging markets and increased government spending on healthcare in developed economies can positively impact the market. Additionally, an aging global population and rising life expectancy create a growing demand for long-term care services. Technological advancements and innovative care models can also drive market growth.

Latest Trends

Growing popularity of nursing homes and home care

Nursing homes offer the most extensive care outside of hospitals. They provide residential care for elderly or disabled individuals. Many nursing homes now take a holistic approach to long-term care. As the geriatric population grows and the number of nursing care facilities increases, the preference for nursing care is also rising.

This trend is expected to continue, driving the growth of the global long-term care market. Additionally, home-based long-term care services are provided to older persons and those with disabilities in their own homes and communities as an alternative to institutional care.

These services include health, personal, and support services, allowing people to stay at home and maintain independence. Long-term care can be provided either in the individual’s home or at a family member’s home. This trend is also anticipated to continue, further contributing to the expansion of the global long-term care market.

Regional Analysis

North America is leading the Long Term Care Market

North America dominated the market with the highest revenue share of 43.7% owing to several factors, including an increasing geriatric population, favorable government policies, and expanded insurance coverage. According to the Department of Health and Human Services (HHS), 7 out of 10 seniors who reach the age of 65 are projected to need long-term care (LTC).

By 2030, an estimated 24 million Americans will require LTC. These factors contribute to the market’s growth in this region. Additionally, government initiatives and programs aimed at supporting older adults further boost market expansion.

For example, in April 2022, the World Health Organization (WHO) emphasized the need to transform health and social care systems to provide integrated, person-centered care that considers the needs, goals, and preferences of older individuals. The WHO’s Integrated Care for Older People (ICOPE) approach and three-phase implementation pilot program support Member States, including the United States, in adapting to integrated care provision.

The Asia Pacific region is expected to experience the highest CAGR during the forecast period

Asia Pacific is expected to grow with the fastest CAGR owing to Asia Pacific is poised for significant growth in the global long-term care market due to several factors. The burden of chronic diseases is rising, target diseases are becoming more prevalent, demand for long-term care is increasing, and the geriatric population is growing in these regions.

For instance, recognizing the unmet needs of the elderly not addressed by hospital systems, India’s elderly population (aged 60 and above) is projected to reach 194 million by 2031, a 41% increase from 138 million in 2021, according to the National Statistical Office (NSO)’s Elderly in India 2021 report.

Key Regions and Countries

North America

• US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherland
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• Australia
• New Zealand
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of MEA

Key Players Analysis

The major players in the long term care market are actively engaged in the development and introduction of innovative products, as well as implementing strategic initiatives such as mergers and acquisitions aimed at enhancing their competitive positioning.

In July 2021, HCA Healthcare’s acquisition of Brookdale Senior Living’s home health and hospice division demonstrates the trend of hospital chains diversifying into home health services. This move aligns with the growing demand for home-based long-term care, especially as the aging population seeks alternatives to institutional care.

Top Key Players

• Sunrise Senior Living
• Sonida Senior Living
• LHC Group, Inc.
• Knight Health Holdings, LLC
• Home Instead, Inc.
• Genesis HealthCare
• Extendicare
• Diversicare
• Brookdale Senior Living, Inc.
• Atria Senior Living, Inc.
• HCA Healthcare
• Omega Healthcare
• Amedisys

Recent Developments

• In May 2023, Omega Healthcare, one of the prominent market players, acquired 18 highly equipped nursing home facilities for US$ 233 million in West Virginia. Omega Healthcare’s acquisition of skilled nursing home facilities in West Virginia highlights the importance of physical infrastructure in the long-term care market. Expanding the network of skilled nursing facilities ensures better access to care for aging individuals, especially those with chronic conditions.
• In February 2022, Extendicare’s deal with Revera involves both a managed interest purchase and a redevelopment joint venture. This demonstrates the strategic collaboration between long-term care providers to optimize resources, improve quality of care, and address the needs of an aging population.

Report Scope