July 24, 2024
Long Term Care Market

Rising demand for better healthcare services projected to boost the growth of Long Term Care Market

The global Long Term Care Market is estimated to be valued at US$ 1,162.21 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Long term care services provide medical and non-medical care for people with chronic illnesses or disabilities. These services help meet health or personal care needs over a period of time. Common long term care services include nursing home care, home health care, hospice care, and adult day care. Long term care helps patients with daily activities like bathing, dressing, eating, and toileting. It also helps with things like managing medications, wound care, coordinating medical appointments, and social engagement. The need for long term care is rising due to the aging global population and increasing life expectancy.

Market key trends:
One of the key trends in the long term care market is the shift towards home and community-based services. Many patients are opting for home care services over institutional care as it allows them to stay in the comfort of their home while receiving medical and non-medical assistance. The preference for home-based care is driving the growth of services like home health care, adult day care and hospice care. Another trend is the use of technology solutions like telehealth, smart home devices and remote patient monitoring to enhance long term care access and outcomes. Technologies help provide quality care and medical oversight while allowing patients to age independently at home for as long as possible.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the long term care market is low. Starting a long term care facility requires high capital costs for equipment and infrastructure. Obtaining licenses and accreditations is also a lengthy and complex process.
Bargaining power of buyers: The bargaining power of buyers is moderate. While there are many long term care providers, buyers have little influence over pricing as care needs take precedence over costs. However, buyers can choose between facility-based and home-based care options.
Bargaining power of suppliers: Nursing staff and healthcare equipment providers have moderate bargaining power in this market. Their services and products are important but suppliers face low switching costs between long term care providers.
Threat of new substitutes: The threat of substitutes is medium. While home healthcare is a growing alternative, it cannot replace facility-based care for patients with high medical needs. Technology-enabled care may emerge as newer substitutes.
Competitive rivalry: The long term care maraket is highly competitive with the presence of several regional and national players. Companies compete based on quality of care, amenities, and pricing.

Key Takeaways
The global long term care market is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing life expectancy and the rising elderly population globally. The market size for 2023 is estimated at US$ 1,162.21 Bn.
Regional analysis: North America currently dominates the global long term care market, owing to the advanced healthcare infrastructure and higher spending on elderly care in the US and Canada. However, the Asia Pacific region is anticipated to emerge as the fastest growing market, driven by China and India’s rapidly expanding aging demographics and improving healthcare standards.
Key players operating in the long term care market are Brookdale Senior Living Inc., Sunrise Senior Living, LLC, Kindred Healthcare, LLC, Genesis Healthcare, Home Instead, Inc., Senior Care Center, Capital Senior Living Corporation, and Diversicare Healthcare Services, Inc. among others. Key players are focusing on mergers and acquisitions to expand their service offerings and geographic presence. They are also investing in technologies to provide superior quality care and enhance consumer experience.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it