The global Home Healthcare market was valued at $230.7 bn in 2016 and is anticipated to reach over $483.1 bn by 2024.
The home healthcare market is anticipated to witness lucrative growth owing to the rising healthcare expenditure, growing prevalence of chronic diseases, shortage of hospital infrastructure, rise in aging population and other factors. Home healthcare enables older people and adults who need long term care to recover from diseases, injuries and for rehabilitation. Home healthcare includes a wide array of product and service portfolio. The out-of-pocket healthcare expenditure and reimbursement play a vital role in market expansion.
The increase in geriatric population is one of the prominent factors driving the demand for home healthcare products and services. The countries such as France, UK, Germany, U.S., and Japan are witnessing rapid growth in the number of people aged 65 and above. In the U.S., as per the 2015, Administration of Aging (AoA) estimates, the number of people aged above 65 is anticipated to be over 46.2 million. In UK, as per the Age UK Group estimates, there are over 23.6 million people above 50 years and nearly 11.6 million people are aged above 65. Furthermore, it is estimated that by 2030, the population above 65 is expected to surpass 20 million. Rise in aging population, coupled with the prevalence of chronic diseases in anticipated to boost the demand for long term home health services over the forecast period.
The rise in prevalence of chronic diseases is amongst the key factors propelling the market growth. The commonly provided services for patients eligible for home healthcare treatment include, symptom monitoring & management, medication delivery, enabling use of medical equipment, physical therapy, emotional support, personal hygiene, and mobility assistance. The changes in lifestyle habits, genetic disorders, and exposure to various environmental factors is driving the incidence rate of diseases such as cancer, cardiovascular diseases, neurological diseases and others. For instance, as per the U.S. National Cancer Institute in 2016, nearly 1,685,210 new cancer cases will be diagnosed and approximately 595,650 people are anticipated to die due the condition. The most common type of cancer include breast, lung, prostate, melanoma, kidney, and pancreatic cancer. The growing disease burden is increasing the healthcare expenditure and boosting the demand for quality healthcare services in home care settings.
The rise in global healthcare expenditure is anticipated to positively reinforce the home healthcare market prospects. In the U.S., as per the 2015, CMS National Healthcare Expenditures (NHE) data, the healthcare expenditure increased from 17.4% to 17.8% of GDP translating into USD 3.2 trillion. The home healthcare segment accounted for over 3% or USD 88.5 billion. Furthermore, the Medicare and Medicaid account for 76% of the home healthcare expenditure, and therefore any changes in the federal healthcare budget is expected to impact the market dynamics over the forecast period.
“Optimal Price Point (OPP) for Home Healthcare Product/Services”
Estimated Average home healthcare product/ service cost – $ xx globally. However, with improving access and availability of options, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
Due to the wide range of products, monitoring the pricing data points provides insights about the demand-supply constraints, competitive scenario in different regions. The pricing strategy differs by region based on the macro-economic conditions, healthcare expenditure, manufacturing costs, import/export duties, population demographics and other factors
Home Healthcare Market by “Product” & “Service”
The home healthcare market by product is segmented as therapeutic, diagnostic and personal mobility assist equipment. The therapeutic equipment category includes products such as, home respiratory equipment, insulin delivery device, home IV pumps, home dialysis equipment, and other therapeutic equipment. the diagnostic category includes products such as BP monitors, multi parameter diagnostic monitors, home pregnancy & fertility kits, apnea and sleep monitors, holter monitors, heart rate maters, and other self-monitoring equipment. The personal mobility assist equipment segment covers products such as Canes, Crutches, Mobility Scooters, Walkers & Rollators, and Wheelchairs.
In 2015, therapeutic equipment segment accounted for the maximum share of over 43% due to the high demand for home respiratory equipment, insulin delivery devices and IV pumps. However, the diagnostic equipment category is expected to register the highest CAGR over the forecast period.
In 2016, North America held the maximum revenue share of over 40% owing to the prevalence of chronic diseases, well-developed reimbursement network, rising healthcare expenditure, growing geriatric population and increasing support for home healthcare services. The high burden on the hospital network is a key constraint for providing long term treatment and therefore, patients are recommended to opt for home care treatment for post-operative care and long-term chronic care.
Asia Pacific is anticipated to register the maximum CAGR of over 9% over the forecast period. The high growth is expected due to the growing disease burden, rising awareness about home healthcare products and services, rise in aging population. The high unmet needs in the region coupled with the hospital capacity constraints are significantly boosting the usage rate of home health care products.
“Competitive Landscape” and “Merger & Acquisition Insights”
The home healthcare market is highly competitive with the presence of several large, medium and small scale enterprises offering a wide range of products and services. To ensure market relevance and gain competitive advantage, manufacturers are trying to acquire companies with specialized or niche portfolio. Some of the major players providing home health services include, Chemed (CHE), Almost Family (AFAM), LHC Group, Lincare Holdings (LNCR), Amedisys (AMED), Gentiva Health Services (GTIV). Some of the leading manufacturers providing the equipment include, GE Healthcare, Medtronic, Cardinal Health Inc., Johnson & Johnson, Intersurgical, Fresenius Kabi, Hill-Rom Holdings and others. The home healthcare provider network is witnessing high M&A activity in the U.S. region. In 2016, there were number of deals executed than in 2015, however the average ticket size has declined.
Some of the notable transactions in the recent time include,
- In 2017, Addus Homecare (ADUS) had acquired Options Home Care, which is a personal care service provider in New Mexico
- In 2017, LHC Group (LHCG) had formed a joint venture with Baptist Memorial Home Health Care. Baptist is one of the leading not-for-profit healthcare network in with 17 hospitals across North Mississippi, West Tennessee, and East Arkansas
- In 2017, Canyon Home Care & Hospice had acquired the Hospital Home Healthcare Business of Washington based Island Hospital
- In 2017, AccentCare, which is a home health and hospice provider across 140 locations in 11 states had acquired Mississippi based Sta-Home Home Health & Hospice
Home Healthcare Market by Product (Revenue, Million, 2014 – 2024)
- Therapeutic Equipment
- Home Respiratory Equipment
- Insulin Delivery Device
- Home IV Pumps
- Home Dialysis Equipment
- Other Therapeutic Equipment
- Diagnostic Equip Home Respiratory Equipment
- Diabetic Care Unit
- BP Monitors
- Multi Parameter Diagnostic Monitors
- Home Pregnancy and Fertility Kits
- Other Self-Monitoring Equipment
- Apnea and Sleep Monitors
- Holter Monitors
- Heart Rate Maters
- Personal Mobility Assist Equipment
- Mobility Scooters
- Walkers & Rollators
- Rehabilitation Services
- Unskilled Home Care
- Respiratory Therapy Services
- Infusion Therapy Services
Home Healthcare Market Regional Outlook (Revenue, USD Million, 20124- 2024)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
- South Africa
- Saudi Arabia