Industry: Healthcare
Published Date: February-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 216
Report ID: PMRREP34014
The global market is forecast to expand at a CAGR of 5.7% and thereby increase from a value of US$800.7 Mn in 2023, to US$543.2 Mn by the end of 2030.
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Attributes |
Key Insights |
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Geriatric Care Services Market Size (2023E) |
US$800.7 Mn |
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Projected Market Value (2030F) |
US$543.2 Mn |
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Global Market Growth Rate (CAGR 2023 to 2030) |
5.7% |
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Historical Market Growth Rate (CAGR 2018 to 2022) |
5.3% |
Geriatrics, also known as geriatric medicine, is a medical specialty dedicated to enhancing the well-being of older individuals. It aims to facilitate healthy aging by preventing and addressing the diseases and disabilities commonly associated with aging. Geriatric care is a comprehensive term encompassing the management of healthcare for the elderly, including both medical and non-medical or personal care services. These services can be delivered in various settings such as homes, hospitals, nursing homes, and psychiatric institutions. Examples of medical geriatric care services include occupational therapy, physical therapy, dialysis, and IV therapy.
The market for geriatric care services is anticipated to experience positive growth over the forecast period. This growth can be attributed to the considerable focus on R&D by manufacturers to enhance offerings in the healthcare sector. Additionally, the presence of diverse long-term care service providers and favorable reimbursement policies are expected to contribute to the market's expansion.
Increase in Geriatric Population
The global demand for skilled nursing care services has significantly surged due to a notable rise in the geriatric population worldwide. The growth of the global skilled nursing care services market is particularly fuelled by the increasing prevalence of Alzheimer's disease and dementia, which is a common form of Alzheimer's. According to the World Health Organization (WHO), approximately 47.5 million people worldwide suffer from dementia, and there are 7.7 million new cases reported annually.
Ongoing research indicates that factors like diabetes, stroke, high blood pressure, and other lifestyle-related conditions contribute to the rising incidence of Alzheimer's, thus propelling the market for skilled nursing care services. However, the high costs associated with these services and limited acceptance pose challenges to market growth.
The continuous increase in the geriatric population places growing financial demands on the healthcare system. The World Health Organization's Global Health and Aging report forecasts that the population aged 65 and above is expected to rise from an estimated 524 million in 2010 to nearly 1.5 billion in 2050, particularly in developing nations. This demographic shift is poised to lead to a higher demand for geriatric care services, ultimately driving market growth.
Lack of Geriatric Care Centers in Rural Areas
The growth of the geriatric care services market is expected to face a significant challenge due to the absence of geriatric care centers in rural areas. A public health review published in the International Journal of Public Health Research in 2019 highlighted the considerable disadvantage faced by elderly individuals residing in rural areas due to the lack of health services focused on geriatric care. The health-related challenges and perceptions of health problems among rural elderly differ substantially from those of their urban counterparts.
Additionally, lower socioeconomic status (SES), and financial stability in rural areas compared to urban areas may hinder health-seeking behavior in the elderly population. These limitations are often more pronounced in rural elderly individuals, particularly elderly women, who are more likely to be unemployed or living alone.
Workforce Shortages, and Increasing Healthcare Costs
A significant and immediate challenge in the geriatric care services market is the scarcity of qualified healthcare professionals. This shortage spans various roles, encompassing nurses, aides, therapists, and geriatric specialists. The aging population exerts a substantial demand on these professionals, underscoring the importance of attracting, training, and retaining a skilled workforce.
The financial burden associated with providing geriatric care services can be considerable, particularly for individuals lacking insurance coverage. Elevated healthcare costs may act as a barrier for many seniors in need of specialized care, restricting their access to essential services. Addressing the affordability of geriatric care is imperative to ensure that all elderly individuals can access the necessary support.
Rising Awareness of Elderly Care
The recent changes in the healthcare landscape have significantly contributed to the expansion of the global geriatric care services market. The heightened emphasis on healthcare management in contemporary times has spurred advancements in elderly care. The increasing prevalence of chronic diseases persisting into old age has further fuelled noteworthy market growth. The demand for a dedicated domain in elderly care has been on the rise in the past decade, with governments making diligent efforts to enhance the quality of life for the geriatric population.
It is widely anticipated that the global geriatric care services market will experience accelerated growth in the coming years. Notably, the improvement in medical reimbursement policies for the elderly over the past couple of decades has played a crucial role in the market's growth. The push for establishing higher standards and values in the treatment of elderly individuals has also been a contributing factor. The expectation is that the augmented investments in healthcare will lead to a substantial influx of revenues into the global market.
The geriatric care services market is anticipated to undergo substantial expansion and change. Over the past few decades, there has been a notable improvement in medical reimbursement policies for the elderly, playing a crucial role in the expansion of the global market. Governments and regional leaders are making substantial investments in healthcare facilities, directly contributing to the growth of the global market.
The market is further anticipated to be driven by the expansion of health insurance companies, providing support to the elderly and their families through medical insurance coverage. Various benefits, including coverage extending into retirement age, are offered to the geriatric population. This enables better access to affordable treatment for major health complications such as cancer, cardiovascular diseases, organ transplants, and more.
Supply-side Dynamics
Several factors, including the substantial increase in the geriatric population across the globe, and Rapid growth in the elderly population, all contribute to the dynamic and rapid expansion of the global Geriatric Care Services market. Endo Pharmaceuticals Inc., Merck & Co. Inc., AstraZeneca PLC, Pfizer Inc., and Allergan Inc. are market leaders in the manufacturing sector. The countries of Germany, Japan, China, France, and the US are significant producers of various goods.
The increased investment in research and development within the biotechnology and pharmaceutical sectors, the continuous development and introduction of new biologics and drugs, and the well-established healthcare infrastructure in the US are pivotal factors contributing to the demand for geriatric care services. The China region is experiencing unparalleled growth in the number of older people, leading to the global trend of an aging population.
Several corporations are constantly working towards the improvement of their products with a major focus on research and development. It is anticipated that these expansions will substantially alter the dynamics of the market, resulting in heightened competition, reduced prices, and an influx of innovative products.
Which is the Topmost Market Segment by Service?
Home Geriatric Care Services Lead the Way
The home care segment emerged as the market leader, attributed to the advantages linked with home-based care, including comfort, independent caretaking, and reduced expenses. Home care services provide essential support to families in formulating care plans for their elderly members, encompassing a diverse range of medical treatments, nursing services, and personalized care.
What is the Dominant Category Based on Payment Source?
Affordability and Tax Benefits Drive Dominance of Payment via Public Insurance
As public insurance is affordable and offers numerous tax benefits, the market is likely to thrive. The public insurance segment offers comprehensive medical coverage for senior citizens, and as a result, it is expected to witness growth during the forecast period. This includes medical insurance providers catering to both families and individuals.
Which is the Leading Area of Application?
Diabetes Remains the Major Area of Application
The diabetes segment of the geriatric care services market is anticipated to experience growth in the forecast period, driven by the rising number of diabetic patients. Home monitoring of blood sugar levels facilitates the development of a comprehensive diabetes treatment plan and assists in the management of medications for blood sugar, diet, and exercise.
North America Takes the Charge on Account of Favorable Reimbursement Policies, and a Significant Number of Elderly Care Centers
Market growth is influenced by several key factors, including favorable reimbursement policies and a significant number of care centers in the US. According to the Centers for Disease Control (CDC) in 2012, nearly 95% of nursing homes, 77% of adult day care service centers, 78% of home health agencies, and 52% of residential care communities were certified to participate in Medicaid.
This notable achievement is primarily attributed to the continuous evolution of reimbursement policies and the widespread presence of various long-term care centers across the US. To provide context, the National Library of Medicine reported that approximately 237,400 individuals in the US were enrolled in adult day services centers (ADSCs) in 2020.
Asia Pacific Gains Momentum on the Back of an Expanding Geriatric Population with Prolonged Medical Conditions
The evolving family structure, particularly in countries like China, is anticipated to increase the demand for external care providers. The impact of China's one-child policy from 1980 to 2015 is expected to result in fewer families available to support an aging population, leading to a rise in the number of elderly individuals living alone. Factors such as the expanding geriatric population with prolonged medical conditions, increasing disposable income, and a heightened awareness of healthcare facilities contribute to the swift growth observed in countries like Japan, China, and India.
Prominent organizations, including Endo Pharmaceuticals Inc., Merck & Co. Inc., and AstraZeneca PLC, are at the vanguard of this sector, providing inventive solutions by capitalizing on their technological prowess and vast experience in the Healthcare industry. Several healthcare organizations are implementing initiatives to raise awareness and reduce hospital admissions, readmissions, and associated risks among the elderly population. Organizations operating within this sector prioritize technological advancements, strategic alliances, and user experience improvement.
Major firms are focused on expanding their consumer base in new countries. These businesses are employing strategic collaboration initiatives to increase their market share and enhance profits. To distinguish themselves in this highly competitive market, these businesses strive to differentiate their products. They achieve this by providing innovative features, personalized services, and value-added offerings.
New Product Launch
In August 2020, Happiness Biotech Group Limited, a pioneering nutraceutical and dietary supplements producer based in China, introduced a new range of products in the personal care segment under the new brand Cai Zhi Ning, primarily catering to the elderly market.
Market Impact: The purpose of the launch of cutting-edge personal care products tailored to the elderly is to address their particular demands. By increasing the range of alternatives and services offered in the geriatric care industry, this initiative may draw in more customers and drive market expansion.
In January 2023, Genesis Healthcare Inc. disclosed its plan to incorporate 34 nursing homes in Pennsylvania. This expansion strategy is anticipated to bolster the company's market footprint and contribute to overall revenue growth.
Market Impact: This move represents a growth in the company's capability and market presence, which could result in improved services and easier access for senior citizens in need of care. The wider scope and enhanced capacities are anticipated to have a favorable impact on the general growth and progress of the geriatric care services industry.
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Details |
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Forecast Period |
2023 to 2030 |
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Historical Data Available for |
2018 to 2022 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
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The market is anticipated to grow at a CAGR of 5.7% during the projected period.
The geriatric care services market was valued at US$800.7 million in 2023.
The US held the largest market share in 2023.
Some of the prominent players in the market are Endo Pharmaceuticals Inc., Merck & Co. Inc., AstraZeneca PLC, Pfizer Inc., and Allergan Inc.
The home geriatric care services segment is expected to grow at the fastest CAGR during the forecast period.
