Trends
Home healthcare market to reach USD 1,445.71B by 2034
The global home healthcare market size is growing to USD 1,332.60 billion by 2033 from USD 423.97 billion in 2024, according to Precedence Research. The home healthcare market is driven by the rising prevalence of chronic disorders and the increasing awareness about self-care. Home healthcare is supportive medical care provided in the individual patient’s home to foster wellness and reduce recurring hospital visits. Home healthcare encompasses various services, such as nursing care, physiotherapy, speech therapy, patient education, and diagnostic services.
Home healthcare has several advantages for patients and their families, including cost savings, continuity of care, enhanced patient comfort, and specialized services for patients with cognitive impairment. It enhances patient safety and prevents complications arising due to re-admission. The demand for home healthcare services is increasing rapidly due to the rising treatment costs, contributing to the market expansion.
Regional stance
North America dominated the home healthcare market with the largest share in 2023, owing to governments’ efforts to cut healthcare costs and the availability of reimbursement policies for home healthcare. Regional market players are adopting business development strategies, such as acquisitions and mergers, to develop and launch a wide range of medical devices and services for home-based care. Moreover, the increasing incidences of chronic diseases and the growing number of geriatric people in the region also contributed to the market growth. The U.S. home healthcare market size was estimated at USD 171.60 billion in 2023 and is expanding to USD 644.37 billion by 2034, growing at a CAGR of 12.74% from 2024 to 2034.
The market in Asia Pacific is expected to expand at the fastest CAGR in the coming years. The growth of the home healthcare market in the region is attributed to several factors, including the significant rise in the aging population, the rise in the instances of chronic diseases, increasing healthcare costs, and technological advancements. Home healthcare services comprise nursing care services, occupational therapy services, physical therapy services, renting of medical equipment, and home infusion services. Home healthcare, considering a spectrum of in-home lifestyle support services and care that includes medication administration and continuous monitoring, is important in managing chronic diseases such as diabetes, heart-related conditions, and respiratory diseases, among others.
Market dynamics
Driver
Low cost associated with home healthcare to drive the growth of the home healthcare market
Home healthcare services are relatively cheaper when compared to hospitalization or institutional care as they minimize the use of emergency rooms and hospital admissions. Home care is very flexible and can be tailored according to a patient’s needs, resulting in enhanced health outcomes and patient satisfaction. Many studies demonstrate that home healthcare is efficient and saves millions of dollars each year. Home care managed by skilled health practitioners enhances the patient’s health status and prevents them from visiting the emergency department, in-patient facilities, and/or outpatient clinics. In addition, home healthcare is more cost-effective within the Medicare system than other forms of institutional care.
Restraint
Lack of skilled professionals hindering the market growth
Home healthcare facilities encounter staffing challenges. The shortage of skilled nurses in underdeveloped countries makes it difficult for people suffering from multiple health conditions to access and leverage nursing services. This may lead to severe health conditions and lifetime disability. Thus, it is advisable to build a large database of potential candidates and incorporate it into the recruitment process to alleviate difficulties with recruitment planning.
Opportunity
Technological advancements offer opportunities in the home healthcare market
Advanced technologies, such as sophisticated electronic health records, have transformed home health care by streamlining patient information and enhancing diagnosis accuracy and treatment efficacy. In addition to this, they have improved data security and patient privacy by putting in place measures such as encryption and access control. There is significant growth in incorporating artificial intelligence and machine learning in the home healthcare system, enabling proactive healthcare practices and detecting patterns and crises. Likewise, machine learning is also highly used to personalize care plans and improve the quality of treatments. Precedence Research