Home Healthcare Market Size, Share & COVID-19 Impact Analysis, By Type {Services (Physician Care, Nursing Care, Physical, Occupational & Speech Therapy, Medical Social Services, and Others), and Products (Diagnostic [Blood Glucose Monitors, Pulse Oximeters and Others], and Treatment [Home Dialysis Machine, Infusion Pumps, Nebulizers, Oxygen Concentrators, and Others])}, By Indication (Cancer, Neurological Disorders, Mobility Disorders, Diabetes, Cardiovascular Disorders, and Others), By Payor (Public, and Private), and Regional Forecast, 2023-2030

The global home healthcare market size was valued at USD 277.11 billion in 2022. The market is anticipated to grow from USD 288.38 billion in 2023 to USD 505.81 billion by 2030, exhibiting a CAGR of 8.4% during the forecast period.

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 IMPACT

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.

• For instance, as per a survey published in SAGE Journal, about 98.7% of home health agencies experienced a drop in the demand for home visits owing to the risk of transmitting 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.

• For instance, Extendicare, a Canada-based company, observed a rebound in its home healthcare volume to pre-pandemic levels throughout 2021 and a growth of 9.8% over 2020.

LATEST TRENDS

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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.

• For instance, in February 2022, BAYADA Home Health Care launched a new digital service that consisted of digital care transition and coordination solutions to help hospitals serve patients better in their homes.

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.

• For instance, in January 2021, Tyto Care, a U.S. based company, launched a pulse oximeter integrated with telehealth platform to expand at-home health monitoring.

DRIVING FACTORS

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.

• For instance, according to a study published in NCBI in 2022 that compared the cost of treatment between inpatient hospitalization and home healthcare, it was found that the cost of treatment in home health was around USD 5,000 cheaper as compared to the hospitalization cost.

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.

RESTRAINING FACTORS

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.

• For instance, in September 2022, a Lowell nurse was found guilty in federal court in a USD 100.0 million Home Health Care fraud and kickback scheme.

These instances have made patients reluctant to adopt these services, thereby restricting the global market growth.

SEGMENTATION

By Type Analysis

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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.

• According to the World Population Ageing 2020 Highlights published by the United Nations, the global population aged 65 years or above was 727.0 million and was projected to double by 2050 to reach 1.50 billion.

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.

By Indication Analysis

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.

• For instance, according to the International Diabetes Federation, in 2021, an estimated 537 million adults aged between 20 and 79 years suffered from diabetes across the globe and about 40-60 million people suffer from complications, such as diabetic foot and lower limb issues.

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.

• For example, according to data published by the Alzheimer's Association, in 2022, about 6.5 million American citizens aged 65 years and above were living with Alzheimer’s. The data projected that this figure will to increase to 12.7 million by 2050.

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.

• For instance, in September 2022, Jivika Healthcare launched at-home chemotherapy services, ChemoAtHome, in Mumbai.

By Payer Analysis

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.

• For instance, public health insurance firm gesetzliche Krankenversicherung, or GKV, pays for healthcare in Germany, and about 89% of Germans have public health insurance.

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.

• For instance, according to data published by the U.S. Census Bureau, in 2021, an estimated 91.4% of the total U.S. population had health insurance. 66.5% of the insured opted for private insurance plans comprising employment-based, TRICARE, and others.

REGIONAL INSIGHTS

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By region, North America generated a revenue of USD 116.88 billion in 2022 and is predicted to dominate the market throughout the forecast timeline. 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.

• For instance, in September 2022, Parkland Health launched hospital care at home program to deliver high-quality hospital care in comfort of patient’s home. The program is launched to reduce the costs for care.

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.

• For instance, in November 2021, Woodland Hospital launched home care services in India, offering nursing care and health check-ups. These services launched by the hospital also comprise a single visit by doctor, package consultation of the doctor for up to five family members, and post-surgery care for 15 days.

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.

KEY INDUSTRY PLAYERS

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.

• For instance, according to the December 2021 press release by Omron, the company’s blood pressure monitor sales increased by 20% to 2.4 million units globally.

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.

• In May 2020, Fresenius Medical Care enhanced its offering for home dialysis in  Europe, Middle East and Africa (EMEA) region after the acquisition of U.S.-based NxStage. This allows company to provide patients with a wide choice of at-home treatment.

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.

LIST OF KEY COMPANIES PROFILED:

• Amedisys (U.S.)


• Trinity Health (U.S.)


• LHC Group, Inc. (U.S.)


• Portea Medical (India)


• BAYADA Home Health Care (U.S.)


• AccentCare, Inc. (U.S.)


• LifePoint Health, Inc. (U.S.)


• The Pennant Group, Inc. (U.S.)


• Abbott (U.S.)


• Baxter (U.S.)


• Masimo (U.S.)


• Omron (Japan)

KEY INDUSTRY DEVELOPMENTS:

• November 2022 - The Pennant Group, Inc. acquired Wisconsin Home Health Provider to provide skilled home health and community health services in Kenosha, Wisconsin.


• September 2022 - BAYADA Home Health Care announced its partnership with Jefferson Health to expand access to in-home care along with improving patient experience in Philadelphia.


• September 2022 - LHC Group, Inc. announced its partnership with the University of Maryland Medical System to provide advanced at-home health services throughout a large area of Maryland.


• August 2022 ­- Baxter received approval for its Novum IQ Syringe Infusion Pump with Dose IQ safety software, which will increase its product offerings.

REPORT COVERAGE

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.

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