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The home healthcare market size was valued USD 277.11 billion in 2022 and is projected to grow USD 288.38 billion in 2023 to USD 505.81 billion by 2030, exhibiting a CAGR of 8.4% during 2023-2030. North America dominated the global market with a share of 42.17% in 2022.
Home healthcare comprises a wide range of healthcare services offered to patients in the homecare settings. These services mainly include monitoring severe illnesses & injuries, providing intravenous & nutrition therapy, wound care, respiratory therapy services, and other treatments. The home healthcare market share is expected to grow owing to the quality of care provided at an affordable price compared to the services offered in hospitals or skilled nursing facilities.
Moreover, the percentage of the geriatric population is growing at a robust pace each year, which has made these services more popular among them as they are at a higher risk of suffering from various chronic illnesses. According to the World Health Organization (WHO) 2022 report, the population aged 60 years and above will increase from 1.20 billion to 1.40 billion by 2050. Also, people in this age group are more likely to develop chronic disorders, such as cancer, neurological disorders, mobility disorders, and heart diseases. This scenario will raise the demand for home health services to provide long-term care, thereby propelling the market growth during the forecast period.
The growing number of surgeries across the globe is also anticipated to boost the demand for these services in the forthcoming years as post-acute care at home is highly recommended by doctors after discharge from hospitals. Also, initiatives by public and private insurance providers to include home health services in their schemes will increase the adoption of these services and augment the market growth.
COVID-19 Pandemic Caused Decline in Home Healthcare Services Due to Slump in Patient Demand
The COVID-19 pandemic slowed the home healthcare market growth. Both the developed and developing nations observed a decline in the demand for these services due to rising concerns regarding transmission of infections among the patient population and a reduction in surgeries. Additionally, many home health agencies have observed a decline in their revenues during the pandemic due to decreased demand for home visits, as most of the patients were above 65 years old with an increased risk of contracting the infection.
However, the market is anticipated to regain normalcy during the post-pandemic period due to the resumption of various healthcare facilities, such as surgeries, home care visits, and integration of teleconsultation, among others. Also, many service providers have observed an increase in the demand for these services after the pandemic.
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Integration of Telehealth Platforms to Raise Adoption of Home Health Services
Earlier, telehealth platforms were not popular among home health service providers. However, the onset of the COVID-19 pandemic increased the adoption of telehealthcare among home health service providers. Many key players operating in the market have shifted their focus to utilizing telehealth platforms to offer better services to their customers. The growing inclination toward adopting telehealth platforms to offer better healthcare services at home is expected to raise the adoption of these services.
Companies are offering diagnostic and treatment products that can be used exclusively in home care settings. They are also focused on strengthening and expanding their product portfolios by launching new and innovative products in the market and partnering with home health service providers. Such initiatives are expected to increase the adoption of these services due to the rising demand for advanced products among these service providers.
Rising Inclination toward Home Health Services Due to Their Cost Effectiveness to Augment Market Growth
Countries across the globe are experiencing a substantial increase in the burden of various chronic disorders, such as diabetes, cancer, cardiovascular disorders, and others. This scenario is increasing the average hospital admission rate. However, treating these illnesses incurs high costs. This factor has prompted patients to shift their preference toward cost-effective treatment models, such as home health services.
Additionally, treatment at homecare settings has various essential benefits over hospital treatment. One such benefit is that the former reduces the risk of acquired infection by many folds. Post-surgery recovery and other serious illnesses may weaken patients' immune system and make them prone to various infections.
Thus, benefits associated with home-based treatments and their cost-effectiveness are a few factors contributing to the market growth.
Growing Incidence of Frauds by Home Health Service Providers Likely to Hinder Market Growth
Despite many advantages of opting for home healthcare services, there is a rising concern about fraudulent activities that is limiting the adoption of these services among patients. The nature of fraud in home healthcare varies; however, the majority of them involve home health agencies billing for services that were not provided or not medically necessary.
Moreover, as per Medicare & Medicaid, newly enrolled home health agencies and durable medical equipment suppliers are more likely to engage in fraud.
These instances have made patients reluctant to adopt these services, thereby restricting the global market growth.
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Rising Penetration and Adoption of Home Healthcare Services is anticipated to Fuel Market Growth
Based on type, the market is segmented into services and products. The services segment is expected to capture the largest market share due to the rising demand for treatments at home. The geriatric population is growing at a notable pace, which has increased their risk of being diagnosed with chronic diseases.
Also, it has been proved through various research studies that most chronic conditions, such as neurological disorders, cardiovascular disorders, and mobility disorders, among others, are more common in old age. This factor will fuel the market growth.
Furthermore, the increasing demand among patients for proper care post-surgery, affordability of these services among the middle-income group, and the launch of new services by home health agencies are a few factors contributing to the market development.
The product segment is also anticipated to witness considerable growth during the forecast period. The initiatives by key players to launch innovative products to provide home health services, adoption of advanced products by home health agencies, and approval of a variety of devices by regulatory bodies to be used in homecare settings will augment the segment growth.
For instance, in February 2022, CVS Pharmacy launched six home health products to expand its existing health product line. The new product range comprises comfort grip canes, easy-fold travel walkers, convertible shower chairs, and others.
Rising Prevalence of Diabetes and Diabetes-Associated Disorders to Propel Market Progress
In terms of indication, the market is categorized into cancer, neurological disorders, mobility disorders, diabetes, cardiovascular disorders, and others. The diabetes segment dominated the market owing to the rising number of patients suffering from the ailment and its related complications, such as diabetic ulcers. Old-aged diabetic patients who require frequent hospital admissions, are suffering from diabetic foot or ulcers, and need multiple medications are shifting their preference toward home health services as this is more cost-effective than hospitals. Moreover, specially trained caregivers offer better assistance to diabetic patients at home as compared to hospitals.
Neurological disorders are the second leading segment in the market. The rising prevalence of various neurological disorders, such as Alzheimer’s, Parkinson's disease, traumatic brain injuries, and others requires special nursing care, increasing the demand for these services.
Cardiovascular disorders and cancer segments might exhibit significant growth during the forecast period. The growing incidence of cancer and the rising burden of various cardiovascular disorders are some of the key factors enhancing the segment growth. Additionally, various companies and healthcare organizations are launching homecare-based services to provide cost-effective treatment for these disorders.
Based on payer, the market is segmented into public and private. The public sector held the largest market share in 2022. The segment's rapid growth is attributed to collective initiatives by Medicare, Medicaid, and other public health insurers to provide affordable healthcare in countries, such as the U.S., Australia, Germany, and others.
The growing adoption of private insurance due to the higher sum insured by third-party insurance companies and the availability of advanced medical care, among others, are a few factors supporting the market growth in the forthcoming years.
In 2022, North America accounted for a significant share of the home healthcare market, with revenue reaching USD 116.88 billion. This represented 42.17% share of the global market. The rising preference of patients toward home health due to advantages, such as privacy, convenience, cost-effectiveness, availability of reimbursement for various home health services, presence of key service providers, expansion of services, and launch of various products by medical device manufacturers for using them in home health settings and services by home health providers will promote the market growth.
Asia Pacific is expected to record the fastest CAGR during the forecast period. The growing percentage of elderly population in the region, coupled with the rising incidence of chronic disorders among them are a few of the factors contributing to the market progress. Moreover, increasing awareness among people regarding the availability and affordability of home health services, improving healthcare infrastructure, and the launch of various home health solutions by the regional players will also positively impact the regional market outlook.
Europe is anticipated to witness considerable growth during the study period. The presence of key manufacturers as well as service providers, their strategic initiatives to expand their product portfolios, conducive environment provided by the government to set up new home health startups, and growing awareness in the region are responsible for regional market growth.
Additionally, Latin America and the Middle East & Africa accounted for a comparatively lower the market share in 2022. However, both regions are projected to observe considerable growth during the forecast period. Increasing initiatives by the governments to promote these services in the region and shifting focus of the manufacturers to launch innovative products are boosting the market growth.
Omron Dominated the Market Owing to its Wide Product Portfolio for Home Use
This market has a robust presence of several reputed companies. However, there are few players who are dominating the market. Organizations, such as Omron, Baxter, Medtronic, and others have accounted for a significant share of the global market. Among the key players, Omron held the largest market share owing to its wide range of product offerings, such as blood pressure monitoring devices, pulse oximeters, nebulizers, and others generally used in healthcare facilities including home health. Furthermore, the company’s strategic initiatives to strengthen its market position and increase its sales also contributed to its revenue growth.
Fresenius SE & Co. KGaA also held a significant position in the global market. The rising initiatives by the company to provide products and services for renal diseases,the launch of new products for home-based usage, and strong geographical positioning are some of the critical factors promoting the company’s growth in the market.
Other leading players in the market are Baxter, Masimo, Medtronic, and Koninklije Philips N.V., among others. Launch of new products, expansion of product offerings to be used at home, introduction initiatives to strengthen their presence in various regions, and increasing demand for home healthcare has improved their progress in the market.
An Infographic Representation of Home Healthcare Market
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The global home healthcare market report provides qualitative and quantitative insights into market analysis, market size, and growth rate for all segments in the market. Along with this, the report offers a global overview and an elaborative analysis of the regional market dynamics and competitive landscape. Various key insights presented in the report include the incidence of snake bites – for key countries/regions, new product launches, key industry developments – mergers, acquisitions, and partnerships in recent years, and impact of COVID-19 on the market.
CAGR of 8.4% from 2023-2030
Value (USD billion)
By Type; By Indication; By Payor; and By Region
Fortune Business Insights says that the global market stood at USD 277.11 billion in 2022 and is projected to reach USD 505.81 billion by 2030.
In 2022, North America stood at USD 116.88 billion.
The market will exhibit steady growth at a CAGR of 8.4% during the forecast period (2023-2030).
Based on type, the services segment will lead the market.
The increasing burden of the geriatric population, the rising prevalence of chronic disorders, shifting preferences towards at-home treatment among the population, the launch of innovative products to be used in home health, and others are the key drivers of the market.
Omron, and Baxter, are the top players in the market.
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