Home Healthcare Market

Home Healthcare Market Size (2023 to 2028)

The global home healthcare market is expected to expand at a CAGR of 9.5% during the forecast period, and the market size is estimated to be worth 323.9 billion USD in 2023 and 509.89 billion USD by 2028. 

Home healthcare provides a wide variety of healthcare facilities that can be assumed at home for sickness or accident. Home health care provides services to people and their families in their homes for advancement, preservation, or healing. Home healthcare is typically affordable, more accessible, and more efficient than hospital care or specialist nursing facilities (SNF). Those accessing home health care offered by the Home Health Agency include chronically sick and disabled people of all ages, those suffering from hospitalization or serious illness, and terminally ill people. Home health nurses may assist patients with day-to-day activities (DLs) such as bathing, toileting, and feeding or guide and supervise aids in providing ADL treatment. Nurses keep records of vital signs, perform emergency orders, take blood, record the activities they perform and the patient's health status, and interact with the patient, relatives, and psychiatrist.

MARKET DRIVERS:

The increase in the growth of the elderly population and the rise in the incidence of chronic diseases act as a significant driver in the home healthcare market. As there is a shift in the world’s composition towards the higher population of elderly individuals, there is a rise in the demand for home healthcare. There will be a rise in the world's population from 769 million in 2022 to 1.6 billion individuals aged 65 and above by 2050, as per the UN Department of Economic and Social Affairs estimates. As the aging population is susceptible to chronic diseases, there will be a significant demand for healthcare and an increase in the pressure on the government and health systems to reap benefits for the healthcare market. The healthcare available at home decreases the needless hospital admissions and time and money spent on consulting medical specialists.

Rising awareness of homecare facilities and disposable income is driving the demand for home healthcare market. Home healthcare services and products are mostly used by bed-ridden and old patients, as they decrease readmission to the hospital and there is a high recovery rate in comparison to in-hospital services. Companies are focusing more on untapped countries like India and China to expand the market. For example, Apollo Homecare offers various categories for the long term, such as ortho rehab, heart rehab, lung rehab, mother and baby care, and many others. These offerings include medical supervision and personalized healthcare services.

Technical developments in-home care services, growing support and an increasing number of initiatives from the governments of several countries for home healthcare, COVID-19's impact on cost and unavailability of hospital beds, and unavailability of ambulance services increase the demand for the home healthcare market. In a pandemic situation where coronavirus patients need medical services, many home health professionals choose to take care of patients at home. Furthermore, Stern payment plans, patient care concerns, and inadequate insurance rates serve as barriers to developing the home healthcare market. For instance, active home telemonitoring devices can help record the person's vital signs and symptoms, which helps the home health agency. These can be used at convenience by the people at home. A sense of comfort and flexibility is provided to patients, which increases the demand for home healthcare services. The usage of insulin delivery devices, BP monitors, home dialysis equipment, and intravenous pumps are a few examples that are driving the demand.

The agency management software to overgrow the forecast period in the global home healthcare market due to its increasing use in roaster planning, billing, remote patient monitoring, and operational record keeping. The growing medical costs, increasing demand for affordable treatment, chronic diseases, technological improvements in the pharmaceutical and medical science fields, and the support from the government for home healthcare supports the growth of the global market.

Furthermore, the increasing cost of medical treatment in a hospital and the rise in cancer patients and kidney diseases are fuelling the growth of the market globally. Maintenance, development, and other medical settings require significant investment; hence, the home healthcare market is grabbing the attention of many investors and entrepreneurs. Amid COVID-19, home healthcare acts as a blessing to the healthcare industry, helping both patients and healthcare providers feel comfort, independence, and social distancing. Despite this, the increasing need for affordable healthcare options, technical advances, and numerous new treatment processes will generate a range of opportunities for the global home healthcare market.

MARKET RESTRAINTS:

The limited insurance coverage offered to home healthcare service users is a significant restraint on the home healthcare market, creating a barrier to utilizing the available service. Individuals with limited coverage or inadequate financial resources are facing challenges with the financial burden. It affects not only the patients but also the entire home healthcare market. For instance, in North American nations, insurance coverage is restricted to Medicare-certified home healthcare organizations. Equipment used in home healthcare, such as remote monitoring, telemetry, rehabilitation, or multi-parameter monitoring, isn’t covered by insurance. In European and North American nations, there is inconsistency in the insurance coverage for the healthcare equipment. In Asian nations countries like India, only post-hospitalized therapies are covered but the insurance companies do not cover in-home healthcare treatment for elderly people and chronic illness.

Finding the right nursing staff with skills and care attitude is a challenging factor for the market's growth. New evolutionary healthcare devices are coming into the home healthcare market, which requires effort and time and is one of the difficult tasks for companies. It's not an easy task for companies to provide home healthcare facilities to many people. Additionally, negligence in giving certificates to the caretakers from professionals, lack of sufficient knowledge of these services in rural areas, and rapid changes in the economic strategies are further expected to limit the global home healthcare market to a small extent.

Many barriers can discourage physicians from taking part in home-based treatment. Compared to the hospital or workplace setting, treatment for patients at home requires longer appointments and a reduced panel scale. The big problem facing home health service providers is the shortage of qualified HCPs who can meet the degree of expertise required for home care facilities. Home health practitioners operate in rural areas and are usually away from their superior physicians. This requires additional skill and an experienced hand to support the patient with adequate care. It is challenging to build up a team of such professional HCPs, which is counterproductive to the customer-trust aspect.

The lack of service facilities, including life-sustaining and support-sustaining medical devices (DMEs), makes it difficult to address the critical care needs of patients at home. Also, New forthcoming healthcare equipment requires time, commitment, and an adequate atmosphere for installing these products. It is challenging for many patients to handle these problems at home. Besides, several illnesses need a 24/7 examination, and, in this situation, it is not possible to offer healthcare, or it is very complicated for both healthcare providers and patients.

Impact of COVID-19 on the global home healthcare market:

Home health services provide broad-based care delivered by licensed medical practitioners, including specialist nursing care, physical therapy, occupational therapy, and speech therapy. Due to COVID-19, demand for home healthcare is growing exponentially. The global COVID-19 pandemic raises the need for treatment services from beds to available physicians. In this scenario, homecare is serving as a boom for the healthcare sector, where home health providers will be able to support disabled and aging people in the safety of their homes. Home-based care is an important alternative to facility-based care, particularly for preventing infection during the COVID-19 pandemic.

COVID-19 has helped to show that homecare programs are successful in keeping seniors safe and well. When doctor's offices curtail appointments, caregivers may be on the front lines of patients at home. This care is attracting more recognition and gratitude from healthcare professionals around the world. Nursing homes and assisted living societies are unsafe in the wake of a pandemic; certain institutions have had diseases with catastrophic results. If it demonstrates its benefit relative to nursing homes and assisted living communities, it believes that the Medicare Benefit and other federal reimbursement benefits will arise.

Besides, During COVID-19, several caregivers have been employed to monitor temperatures in offices or warehouses, and the role of the caregiver to grow as a result of the COVID-19 pandemic. They also helped with diet and drug pick-up. In the early period of the lockdown, there was a substantial drop in the nursing care industry. However, with outdoor medical capability passing its threshold and the government taking steps to train and hire home care nurses, the demand is projected to expand rapidly.

REPORT COVERAGE:

The research report on the global home healthcare market has been segmented and sub-segmented based on product type, type service type, software, and region.

Home Healthcare Market - By Product Type:

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

Based on product type, The testing, screening & monitoring segment leads with accounting for the highest share of the global home healthcare market during the forecast period owing to the rise in the availability of various diagnostic procedures directly at home, which gives reports immediately. The growing demand for effective treatment care from patients is further fuelling the growth rate of the segment in the worldwide market. Technological advancements in the products provide accurate and timely diagnoses and are likely to boost the growth of the diagnostic equipment segment. An increase in patient awareness and health consciousness is also propelling the growth of the diagnostic equipment segment in the worldwide market.

The therapeutic segment will account for a considerable share of the global market during the forecast period mainly due to the rise in the incidence of chronic diseases such as sleep, respiratory disorders, and kidney diseases. This has increased the demand for home healthcare therapeutic equipment.

Home Healthcare Market - By Type:

• Home Telehealth Monitoring Devices
• Home Telehealth Services
• Home Telehealth Software 

Based on type, the home telehealth monitoring devices segment will hold the dominating share of the global market during the forecast period owing to the rise in the support from the IT sector in launching different software and increasing capital income in both developed and developing countries.

Home Healthcare Market - By Services Type:

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

Based on service type, the rehabilitation therapy segment is estimated to account for the leading share of the global market during the forecast period due to the growing awareness of the availability of specialized care treatment services at home and rising privacy concerns and personal care through professional caregivers.

Home Healthcare Market - By Software:

• Agency Software 
• Clinical Management Systems 
• Hospice Solutions

Based on software, the agency software segment led the market in 2022 and is expected to continue to lead the market throughout the forecast period, owing to the rapid adoption of cloud-based deployment mode in every application and the rise in support from government organizations.

Home Healthcare Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

In 2022, North America was the market leader in the global home healthcare market. With the rise in the initiative’s steps from the Government towards home healthcare services. Also, as per the research analysts at Market Data Forecast, the North American home healthcare market is expected to grow at a promising CAGR during the forecast period owing to the presence of an affluent population, the availability of advanced healthcare infrastructure, rapid adoption of technological advancements and increasing preference for home healthcare in North America. The growing aging population, advanced healthcare systems, and high disposable income are relatively boosting this region's market growth. The rise in the prevalence of chronic diseases, such as cardiovascular conditions, respiratory disorders, sleep, diabetes, and many others, driving the need for specialized care for patients in the comfort of homes.

The Asia Pacific is leading the market after North America due to the acceptance of the latest technologies. The rising elderly population is also an important attribute magnifying the demand of the market. The growth in the region is driven by the high incidence of chronic diseases and increasing healthcare costs.

The European home healthcare market has grown tremendously over the past decade and registered a significant growth rate in the foreseen years. The increasing cost of healthcare in hospitals and the presence of key manufacturing as well as service providers are propelling the growth of the European market. There is a strategic initiative to expand the product portfolio and a conducive environment provided by the government to start a business in home healthcare, and growing awareness is driving the market growth.

The Middle East and Africa regions will have inclined growth rates in the coming years.

KEY MARKET PARTICIPANTS:

Companies playing a significant role in the global home healthcare market profiled in this report are Almost Family Inc., Amedisys Inc., General Electric Company (GE), Kinner Software Inc., Omron Corporation, Linde Group, Roche Holding AG, Philips Healthcare, Mckesson Corporation, LHC Group Inc., Kindred Healthcare, Fresenius Se & Co Kgaa, Abbott Laboratories, and Apria Healthcare Group.

NOTABLE HAPPENINGS IN THIS MARKET IN THE RECENT PAST:

• In 2023, Amedisys has agreed to combine with a company specialized in providing diversified health services, Optum. Amedisys provides personalized home healthcare services and performs around 11.1 million visits to the homes of patients in a year.
• In 2023, a new medical adhesive will be launched by 3M, which is designed to be compatible with a wide range of sensors, health monitors, and long-term medical wearables. The strategy has helped the company expand its product offerings and increase its customer base.
• In 2022, a fully independent palliative care software solution was launched by one of the leading technology innovators for healthcare at home, Axxess. This solution provides complete care in the home. This innovation has enhanced the product offerings and assisted in strengthening the market growth.
• In April 2020, AliveCor and OMRON announced that they would increase investment in remote patient care to provide excellent cardiovascular monitoring for about 70% of the world’s population. 
• In February 2020, GE Healthcare and Preventive Solutions collaborated to develop an innovative idea that is connecting the heart from hospital to home virtually. As atrial fibrillation is one of the common complications in the aged population, this system will help to reduce heart-related risks. 
• In January 2020, Amedisys, the fourth largest hospice provider in 2019, finally announced that it had acquired Asana Hospice with good financial terms. With this acquisition, the company has extended its portfolio to eight locations and operates care services in 33 states. 
• In January 2020, AdaptHealth Corp acquired the McKesson patient care solutions business. This acquisition will add Urological and Ostomy products, which will strengthen the portfolio of the company. 
• In July 2019, Amedisys signed an agreement to acquire home health regulatory assets to expand its access in New York. Under this agreement, the company is to have a certificate from Premier Home Health Care Services, Inc. to operate home health care services. 
• In July 2019, Amedisys announced its plan to establish a partnership with ClearCare Inc. This agreement is to improve the quality of connecting personal care to the patients. 
• In June 2018, GE, a leading company in health care, offered services in over 150 countries worldwide. It is to expand its services in medical imaging, data analytics, and bio-manufacturing.
• In November 2017, Almost Family, Inc., announced that they had signed an agreement with Louisiana-based LHC Group, Inc. to provide innovative healthcare services. These two companies also estimated that their revenue would cross USD 1.8 billion in the first half of 2018. 
• In May 2016, Philips came up with an innovative product named ‘Always On.’ It is an effort to monitor older people in their homes. 
• In June 2016, the Arkansas Department of Health announced that Kindred Healthcare had acquired In-home health care operations. It will expand Kindred’s services and in-home healthcare.