Home Healthcare Market Size, Growth & Trends, Market Research and Industry Forecast Report, 2027 (Includes Business Impact of COVID-19)

  • TBI672908
  • November 28, 2020
  • Global
  • 132 pages
  • Lucintel
                                              

Industry Insights, Market Size, CAGR, High-Level Analysis: Home Healthcare Market

The global home healthcare market size was valued at USD 281.8 billion in 2019 and is expected to register a CAGR of 7.9% over the forecast period. Population aging around the world and increased patient preference for value-based healthcare are anticipated to fuel market growth. According to the World Health Organization (WHO), there were 703 million persons aged 65 years or over in the world in 2019. The number of older persons is projected to double to 1.5 billion by 2050. The aging population demands more patient-centric healthcare services, which in return increases the demand for healthcare workers and agencies and is anticipated to drive market growth. The Bureau of Labor Statistics states that a growing workforce pertaining to healthcare service translates to the increasing demand for home health and personal healthcare aides and is expected to outpace the healthcare sectors growth, with more than 4 million jobs only in the home healthcare sector. Value-based healthcare is another major factor contributing to the market. In most of the developed and developing nations, the central government is offering either partial or complete coverage for the in-home services. In U.S., Medicare reimbursements are highly favorable in providing value-based healthcare for improved patient outcomes at a low cost. Thus, in-home care has become a modality of choice for treatment. In U.S., Medicare is the largest single payer of home healthcare services. Medicare spending accounts for more than 40% of home health expenditures. Medicaid payments are divided into three main categories: the traditional home health benefit (mandatory), the personal healthcare option, and home and community-based waivers as an optional program. Collectively, these three home healthcare service categories hold a small share of total Medicaid payments. In Europe, the central government offers some reimbursement benefits for this service. People are free to choose the providers and even the type of healthcare. But the central government does not completely cover the services being provided to the patients attributed to the division of home care into two parts i.e. healthcare and social care. Each part of service is covered by different financial sources and hence different rules govern eligibility, allocation, and administration.

Component Insights of Home Healthcare Market

By component, the home healthcare market has been segmented into equipment, services, and software. Among the component, the services segment dominated the market. With the dramatic increase in the aging population worldwide, the demand for home healthcare agencies is increasing for better patient outcomes. In addition, the increasing prevalence of chronic disease among the elderly is another major factor contributing to market growth. The therapeutic devices dominated the equipment segment in 2019. The increasing number of patients suffering from chronic or acute respiratory illnesses or with urinary incontinence or end-stage renal disease (ESRD) demand advanced devices for treatment. In addition, reduced service charges for in-home healthcare when compared to hospital or nursing homes is another key factor boosting the therapeutic equipment market. According to the University of California, SF, around 750,000 patients per year in U.S. and 2 million patients globally are affected by the end-stage renal disease (ESRD). The diagnostics equipment segment is anticipated to witness lucrative growth during the forecast period attributed to the increasing prevalence of diabetes and cardiovascular diseases which needs continuous monitoring. In addition, increasing patient awareness levels towards screening process and technological advancements, integration of microfluidics, sensors, Internet-of-Things (IoT), smartphones and wearables bring point-of-care testing to the patients and represent a strong opportunity for providing sensitive, low-cost, rapid, and connected diagnostics. Rehabilitation services held the largest market share in 2019 and are estimated to expand further during the forecast period. Growing demand for skilled nurses offering rehabilitation services is the major factor driving the market. The clinic management systems held the largest market share in the software segment in 2019 due to its feature to provide all in one solution for the agencies. The agency management software is anticipated to witness high growth during the forecast period due to its increasing use in roaster scheduling, billing, patient remote monitoring, and maintaining records associated with the business.

Regional Insights of Home Healthcare Market

In North America, U.S. held the largest market share in 2019 attributed to shifting trends towards in-home healthcare from the nursing homes, technological advancement, and presence of advanced medical infrastructure. In addition, high patient awareness levels coupled with increasing healthcare expenditure and the implementation of the streamlined regulatory framework are also driving the market in the region. Supportive initiatives by the Centers for Medicare and Medicaid Services are anticipated to propel market growth further. Germany held the largest market share in Europe in 2019 followed by France. This is mainly due to increasing expenditure towards in-home healthcare in the country and growing demand for the skilled nursing workforce for in-house care. Asia Pacific is anticipated to witness the highest growth rate during the forecast period. Growing economy, high prevalence of chronic diseases, aging population, and skilled labor availability at economic costs, are the major factors enhancing the growth of this region. Japan held the largest market share attributed to the growth of the aging population and medical care associated with it. It is anticipated that by the year 2050 around 40% of the population in Japan will grow over 65 years of age. It is prominent in Tokyo where the percentage of 65 years old population is 25% in the year 2020 and is expected to be 30% of the total population by the year 2035.

Market Share Insights of Home Healthcare Market

The contributors to this market are divided into three categories i.e. manufacturers, service providers, and software solution providers. Key manufacturers in this market are McKesson Medical-Surgical Inc.; Fresenius Medical Care; Medline Industries, Inc.; Medtronic PLC; 3M Healthcare; Baxter International Inc.; B. Braun Melsungen AG; Arkray, Inc.; F. Hoffmann-La Roche AG; Becton, Dickinson And Company; Acelity L.P.; Hollister Inc.; ConvaTec Group PLC; and Molnlycke Health Care. The key service providers are Brookdale Senior Living, Inc.; Home Health Services Ltd.; Sunrise Carlisle, LP; Extendicare, Inc.; Care UK Limited; Senior Care Centers of America; Genesis Healthcare Corp.; Sompo Holdings, Inc.; Kindred Healthcare, Inc.; and Home Instead Senior Care, Inc. In the software segment, major players operating in the market are Epic Systems Corporation; Allscripts Healthcare Solutions, Inc.; Cerner; Omnicare; Omnicell, Inc.; McKesson Corporation; MatrixCare; Optimus EMR; Netsmart; and PointClickCare. Mergers and acquisition and introduction of new services are key strategies followed by the market leaders. For instance, in February 2019, a Georgia based home healthcare company named Aveanna Healthcare underwent a definitive agreement to acquire the home healthcare division of Maxim Healthcare Services, a Maryland based home healthcare, and healthcare staffing service provider. In October 2019, a leading software provider in the market for home healthcare named ClearCare, Inc., underwent an agreement to be acquired by WellSky Corporation, health, and community care technology company. In July 2019, Net Health, an outpatient software provider, acquired Optima Healthcare Solutions, to enter into the home health and hospice segments of post-acute healthcare service market. Optimas post-acute care solution is mainly used by contract therapy companies, skilled nursing facilities (SNFs), continuing care retirement communities, and assisted living communities. In April 2017, McKesson Corporation acquired CoverMyMeds LLC, a company developing Electronic Prior Authorization (ePA) solutions. The company has automated the prior authorization process for more than 500 EHR systems, 700,000 providers, 49 thousand pharmacies, most health plans, and Pharmacy Benefit Managers (PBMs).

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Home Healthcare Market Research Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, this market research report has segmented the global home healthcare market report based on component and region:

Component Outlook (Revenue, USD Million, 2019 - 2030)

  • Equipment
  • Therapeutic
  • Home Respiratory Equipment
  • Insulin Delivery Devices
  • Home IV Pumps
  • Home Dialysis Equipment
  • Others

Diagnostic

  • Diabetic Care Unit
  • BP Monitors
  • Multi Para Diagnostic Monitors
  • Home Pregnancy and Fertility Kits
  • Apnea and Sleep Monitors
  • Holter Monitors
  • Heart Rate Monitor
  • Others

Mobility Assist

  • Wheel Chair
  • Home Medical Furniture
  • Walking Assist Devices
  • Services
  • Rehabilitation Services
  • Unskilled Home Care
  • Respiratory Therapy Services
  • Infusion Therapy Services
  • Telemetry
  • Software
  • Clinic Management Systems
  • Agency Management Software
  • Hospice Solutions

Table of Contents
Chapter 1 Research Objective                  1.1 Objective - 1                  1.2 Objective - 2                  1.3 Objective - 3                  1.4 Objective - 4Chapter 2 Executive Summary                  2.1 Market Outlook                  2.2 Segment Outlook                      2.2.1 Component                      2.2.2 Region                  2.3 Competitive Insights                  2.4 Home Healthcare Market SnapshotChapter 3 Home Healthcare Market Variables, Trends & Scope                  3.1 Market Lineage Outlook                      3.1.1 Parent market outl
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