Home healthcare market to reach USD 786.85B by 2032

The global home healthcare market size surpassed USD 302 billion in 2022 and is estimated to value around USD 786.85 billion by 2032, growing at a healthy CAGR of 10.1% during the forecast period 2023 to 2032.

The U.S. home healthcare market size was valued at USD 143.19 billion in 2022 and is projected to reach around USD 278.83 billion by 2032, expanding at a CAGR of 6.89% from 2023 to 2032.

Home healthcare is a wide range of medical and non-medical services offered to patients in their homes. These services are short-term or long term offered by skilled professionals, including registered nurses, licensed practical nurses, occupational therapists, social workers, and home health aides.

The recent advances in smart home solutions such as voice-activated home devices, IoT-connected devices, and movement-tracking gadgets have significantly impacted patient well-being. Smart voice-activated home devices enable hands-free control and communication, vital for people with limited mobility. For instance, a sensor-based AI platform developed by the US-based startup Cherish uses radar-based sensors and AI to monitor in-home safety, well-being, and health. Cherish addresses privacy concerns and encourages proactive care management by identifying risks and emergencies without the need for wearable gadgets. This benefits patients by increasing engagement and independence and providing caregivers and healthcare providers with timely insights and interventions.

Similarly, Opus Novo, an Austrian startup, contributes to this development with the Elly multifunctional lamp. Elly detects movement, activates lighting, and alerts professionals when a person with dementia approaches the front door by integrating sensors and cameras. This improves safety and simplifies caregiving, saving time and reducing caregiver anxiety.

The Home healthcare market is segmented based on type, device, services, and region. Factors such as the aging population, rising prevalence of chronic diseases, the increasing cost of inpatient care, patient preference, the rise of the digital health era, growing demand for value-based care, and increasing focus on patient engagement drive the home healthcare market. However, factors such as lack of insurance coverage, regulatory issues, limited reimbursement, patient reluctance, and shortage of qualified caregivers are limiting the growth of the market. Furthermore, telehealth & remote patient monitoring, VR & AR in rehabilitation, AI & Robotics, Caregiver recruitment & retention, and preventative care & wellness programs are expected to offer ample opportunities in the home healthcare market.

North America dominated the global home healthcare market in 2022 due to high patient awareness regarding the benefits of home care. Due to the growing aging population, government support, and the installation of a streamlined regulatory framework, North America dominated the long-term care industry in 2020. Medicaid accounts for over 60% of long-term care spending in the United States. One in every five Americans is anticipated to be at least 65 years old by 2050. With the adoption of the Patient Protection and Affordable Care Act, funding is expected to increase. The US accounted for the largest share of the North American market in 2022. The home healthcare business is one of the fastest-growing in the United States, and it is responsible for billions of dollars in savings by relocating treatment from traditional institutional settings to the patient’s home. For home health and hospice providers, the aging population provides significant tailwinds for patient volume and continuing growth.

The Asia Pacific region is expected to grow faster during the forecast period due to the aging population, which is expected to reach 1.3 billion by 2050, rising incidence of chronic disease, and increasing demand for home healthcare services in rural areas. Moreover, government initiatives promote home care, and reducing reliance on expensive hospital care is expected to provide opportunities in the market. Technological advances, such as telemedicine and remote monitoring, make providing home healthcare services in the region more accessible. These technologies allow healthcare providers to monitor patients in real-time and provide care remotely, improving patient outcomes and reducing the need for hospitalizations. Additionally, rising hospitalization costs, a rising elderly population, and a need for personalized medical attention have fueled a rapid increase in India’s home healthcare services sector.

The diagnostic and monitoring devices segment is expected to grow faster during the forecast period. Healthcare providers and insurers are shifting to at-home devices and monitoring tools to care for patients and use fast-evolving telehealth technology. Healthcare providers are increasing their remote monitoring options to patients spurred by the lower costs for care and more payment flexibility from the U.S. Centers for Medicare and Medicaid Services. Furthermore, Medtech startups are also interested in shifting care away from hospitals in favor of increased at-home care and monitoring, with 70% of diagnostic startups in accelerator MedTech Innovator’s 2021 database offering products that allow patients and physicians to get real-time results, according to a study.

Moreover, integrating telehealth services with diagnostic devices improves remote healthcare capabilities. Patients can have virtual consultations with healthcare professionals, sharing data collected by these devices for more accurate assessments. Government support and increased insurance coverage for such devices drive the adoption of diagnostic and monitoring tools.

Home Healthcare Market Revenue, By Services, 2021, 2022,2023 and 2024 (USD Billion)
The unskilled Homecare segment is expected to grow faster during the forecast period. Personal care assistance for activities such as bathing and dressing, companionship to combat isolation and develop emotional well-being, and meal preparation to ensure proper nutrition are all part of this essential field. Caregivers in this segment help with light housekeeping, medication reminders, and transportation to and from medical appointments and tasks. The growing importance of unskilled homecare is particularly visible in an aging population seeking to age in place, emphasizing the importance of independence. The adaptability of unskilled homecare services allows for the development of personalized care plans adapted to each client’s specific needs and preferences, contributing to a holistic and compassionate approach to home-based care.

Market key players:
Manufacturers: –

• McKesson Medical-Surgical Inc.
• Fresenius Medical Care
• Becton, Dickinson And Company
• Arkray, Inc.
• Medline Industries, Inc.
• 3M Healthcare
• Baxter International Inc.
• Medtronic PLC
• Braun Melsungen AG
• ConvaTec Group PLC
• Molnlycke Health Care
• Acelity L.P.
• Hollister Inc.
• Others

 Service providers: –

• Sunrise Carlisle, LP
• Extendicare, Inc.
• Brookdale Senior Living, Inc.
• Home Health Services Ltd.
• Care UK Limited
• Kindred Healthcare, Inc.
• Genesis Healthcare Corp.
• Sompo Holdings, Inc.
• Home Instead Senior Care, Inc.
• Others

Precedence Research