Assisted Living Market Size, Share & Industry Analysis, By Ownership (Chain Affiliated and Independently Owned), By End User (Women and Men), By Age (Below 65 Years, Between 65 to 74 Years, 74 to 85 Years, and Above 85 Years), and Regional Forecast, 2024-2032

The global assisted living market size was valued at USD 157.28 billion in 2023. The market is projected to grow from USD 171.15 billion in 2024 to USD 271.50 billion by 2032, exhibiting a CAGR of 5.94% over the forecast period.

Assisted living is a housing & care system for older individuals who prefer independent living and individuals with disabilities who need some help with daily activities but usually don't require 24/7 medical attention. According to the Administration for Community Living, a government agency, nearly 60% of older adults will need some form of long-term care, thus propelling the global market growth. Furthermore, various prominent players are operating in the market, including Brookdale Senior Living, Atria Senior Living, Clariane, Sunrise Senior Living, and Dussmann Group.

MARKET DYNAMICS

Market Drivers

Rising Older Population and Increasing Life Expectancy Worldwide to Fuel Market Growth

The increasing number of older population across countries drives the market growth. This demographic shift boosts the demand for specialized housing solutions and healthcare services catering to the needs of aging individuals. Moreover, the older individuals requiring assistance with daily activities propel the market growth. According to the United Nations (UN), a government agency, the number of individuals aged 65 years or older worldwide increased from 761 million in 2021 to 771 million in 2022. Additionally, according to the UN, the older population is projected to reach 994 million by 2030 and 1.6 billion by 2050 worldwide. Moreover, rising life expectancy across countries has led to a larger demographic requiring long-term care and housing solutions tailored to their specific needs, boosting demand for assisted living facilities.

Rising Prevalence of Chronic Diseases to Propel Market Growth

The increasing prevalence of various chronic diseases, including diabetes, cardiovascular conditions, arthritis, and neurodegenerative disorders such as Alzheimer's disease among older individuals, propels the market growth. According to the National Council on Aging (NCOA), a non-profit organization, nearly 95% of adults 60 and older have at least one chronic condition, while nearly 80% have two or more. These chronic diseases necessitate long-term care and continuous medical attention, which are core offerings of assisted living facilities. Moreover, the increasing availability of memory care units designed to cater to residents with cognitive impairments, providing a safe and structured environment, fuels the market growth. Furthermore, assisted living facilities often provide on-site medical staff and tailored care programs, making them an attractive choice for families.

Market Restraints

Staffing Shortage Across Countries to Hamper Market Growth

The growing shortage of various skilled workers, including caregivers, nurses, and support staff, to provide high-quality services to residents, hampers the market growth. Moreover, many positions in these facilities, particularly for caregivers and aides, are low-paying jobs with minimal benefits, making them less attractive to individuals. According to the American Health Care Association (ACHA) and National Center for Assisted Living (NCAL), a non-profit federation, from January 2022, 63% of assisted living providers are experiencing staffing shortages. Moreover, 87% of assisted living providers experienced difficulty hiring new staff nationwide. Furthermore, the shortage of workforce in these facilities has driven several families to opt for home care services and nursing homes, thus limiting the assisted living market growth.

Market Opportunity

Offering Specialized Services to Offer Competitive Advantage

The demand for facilities with specialized services is growing significantly among elderly population owing to increasing prevalence of chronic diseases worldwide. Facilities offering various specialized services, including memory care services, chronic disease management, post-surgery or injury recovery, catering to individual’s health need will offer competitive advantage to the market player.

Market Challenges

Increasing Operational Costs to Limit Market Growth

The increasing operational costs of facilities and services across countries limit the market growth. Rising energy costs are owing to surging inflation and the need for a consistent power supply to operate facilities efficiently, thus increasing the operational cost. Moreover, with the rising complexity of resident health needs, several facilities are incorporating advanced healthcare services and technologies, which are expensive to maintain, thus hampering the market growth.

Assisted Living Market Trends

Integration of Innovative Technologies across Facilities to Provide Growth Opportunities

The integration of various innovative technologies across facilities to offer residents enhanced safety and personalized services, thus fueling the market growth. Integration of telemedicine enables residents to receive medical care remotely, reducing the demand for in-person doctor visits. Moreover, the integration of wearable fall detectors, pressure-sensitive floor mats, and emergency response systems offers instant alerts and ensures immediate assistance in case of accidents. Furthermore, virtual reality is increasingly being used for therapeutic purposes, such as virtual travel, memory exercises, and immersive experiences, boosting the demand for facilities with innovative technologies.

Impact of COVID-19

The COVID-19 pandemic significantly impacted the market owing to lockdowns imposed by governments across countries in 2020. Assisted living implemented stringent control measures, leading to increased operational expenses. Moreover, various facilities experienced low occupancy rates due to hesitancy and restrictions on new admissions. Furthermore, facilities faced staff shortages due to illness and fear of working in high-risk environments.

SEGMENTATION ANALYSIS

By Ownership

Increasing Number of Chain Affiliated Facilities Worldwide to Drive Market Growth

The global market is bifurcated into chain affiliated and independently owned, based on ownership.

The chain-affiliated segment dominated the market in 2023 owing to the rising number of chain-affiliated facilities worldwide. Established chain facilities have strong brand recognition and trust among families, making them a preferred choice over independent facilities. Furthermore, chains usually maintain consistent care standards across locations, reassuring families of reliable services.

The independently owned segment is expected to grow significantly throughout the forecast period owing to the rising presence of independent facilities across countries. Moreover, these facilities often provide more tailored and personalized care catering to individual preferences.

By End User

Growing Number of Elder Women Population to Fuel Market Growth

The global market is bifurcated into men and women, based on end user.

The women segment dominated the market in 2023 owing to rising life expectancy and a growing number of elderly women population. According to the American Health Care Association (ACHA) and the National Center for Assisted Living (NCAL), a non-profit federation, in 2024, over 70% of the residents living in assisted living communities were women across the U.S. Moreover, increasing awareness about various specific healthcare needs, including managing menopause, osteoporosis, and cardiovascular conditions, drives the segment's growth.

The men segment is expected to grow considerably in the coming years owing to the increasing prevalence of various chronic health conditions, including diabetes, cardiovascular diseases, and immobility impairments among men. Moreover, with smaller family sizes & urban migration, older men are increasingly living alone, thus boosting the segment's growth in the coming years.

By Age

Increasing Life Expectancy to Favor Market Expansion

The market is segmented into below 65 years, between 65 to 74 years, 74 to 85 years, and above 85 years, based on age.

The above 85 years dominated the market in 2023 due to longer life expectancy and the need for advanced geriatric care. Moreover, the increasing number of baby boomers moving to retirement age and seeking retirement communities propels market growth.

The 74 to 85 years segment is expected to grow significantly through the forecast period owing to the increasing prevalence of age-related health issues and the need for assistance in daily activities. Moreover, rising acknowledgment of various benefits, including access to social interactions, improved quality of life, and independence, is expected to drive the segment's market growth in the coming years.

Global Assisted Living Market Regional Outlook

Geographically, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America

North America dominated the assisted living market share in 2023 owing to the rising aging population and increasing prevalence of chronic diseases. Moreover, the increasing affordability of assisted living compared to home health care and nursing home care fuels the demand for assisted & senior living communities. According to the American Health Care Association (ACHA) and National Center for Assisted Living (NCAL), a non-profit federation, in 2024, the annual median cost for assisted living was USD 54,000, for home health aide was USD 61,776, and for nursing home care was USD 94,896 (semi-private room) & USD 108,408 (private room).

The U.S. is the most prominent country in the region owing to the high presence of assisted living communities and increasing health awareness among individuals. According to the American Health Care Association (ACHA) and the National Center for Assisted Living (NCAL), a non-profit federation, in 2024, there were 30,600 communities with 1,197,600 licensed units across the United States.

Europe

Europe is expected to grow significantly throughout the forecast period owing to the increasing number of older individuals across the region. According to the European Union, a government agency, in 2023, there were over 95.60 individuals aged 65 years & over (21.3% of the overall population) compared to 90.40 individuals aged 65 years & over in 2019.

The increasing popularity of senior living communities among individuals seeking personalized care for the long term fuels market growth. Moreover, the rising prevalence of chronic diseases across countries boosts demand for adult care facilities offering personalized care and support. According to the European Commission, a government agency, more than a third (35.0%) of individuals in the EU reported having a long-standing (chronic) health problem in 2023.

Asia Pacific

Asia Pacific is expected to grow significantly in the coming years owing to the increasing older population across India, China, Japan, and Australia. According to the Government of China, in 2022, there were 280.04 million elderly individuals aged 60 & above and 209.78 million elderly individuals aged 65 & above. Moreover, the growing number of facilities across the region drives the market growth. According to the Government of China, in 2022, there were 387,000 elderly care institutions and facilities, providing over 8.29 million beds across China.

South America

South America is expected to grow steadily throughout the forecast period. Rising urbanization and the increasing trend of nuclear families across Argentina, Brazil, Columbia, and Peru have reduced the traditional system of supporting older people, thus propelling market growth. Moreover, growing awareness regarding these facilities among families & individuals, coupled with governments promoting elderly care through policies & incentives, further fuels market growth across the region.

Middle East & Africa

Middle East & Africa is expected to grow considerably throughout the forecast period owing to the growing elderly population and rising disposable incomes among individuals. Moreover, increasing awareness regarding various benefits, such as independence, safety, and access to healthcare across countries, drives market growth. Furthermore, the increasing number of premium facilities and increasing social acceptability among individuals will favor market expansion in the coming years.

COMPETITIVE LANDSCAPE

Key Industry Players:

Prominent Players Focusing on Geographic Expansion to Strengthen Their Presence

Intense competitive rivalry characterizes the global market. International prominent market players leverage their strong brand loyalty & presence to stay ahead of the competition. Several key market players are focusing on launching new facilities to expand their reach.

Major Players in the Assisted Living Market

Brookdale Senior Living, Atria Senior Living, Clariane, Sunrise Senior Living, and Dussmann Group are the prominent players in the market. The market is fragmented, with the top 5 players accounting for around 32% of the market share.

List of Key Assisted Living Companies Profiled:

• Brookdale Senior Living (U.S.)


• Atria Senior Living (U.S.)


• Sunrise Senior Living (U.S.)


• Erickson Senior Living (U.S.)


• Barchester Healthcare (U.K.)


• ATHULYA ASSISTED LIVING (India)


• Epoch Elder Care (India)


• Clariane (Germany)


• Dussmann Group (Germany)


• The Flag (Germany)

KEY INDUSTRY DEVELOPMENTS:

• July 2024:  Edelweiss Village, a U.S.-based senior living company, launched its new assisted living memory care apartments.


• September 2022: Athulya Senior Care, an India-based senior living company, launched its new assisted living facility in Bengaluru, India. According to the company, the new facility offers various services, including geriatric assistance by professional caregivers, 24/7 clinical assistance and security protection, housing, and laundry services.


• December 2020: Antara Senior Living, a brand of Max Group, launched its 37-bed home facility for older adults in Delhi, India. According to the company, the new care home includes assisted living facilities and services for elders who need support in their daily living needs.

Investment Analysis and Opportunities

The market report provides comprehensive investment analysis and opportunities in the assisted living industry to provide investors and business leaders with actionable insights. The report also highlights potential investment opportunities, including innovations, technology integration, and geographic expansion.

REPORT COVERAGE

The assisted living market report analyzes the market in-depth and highlights crucial aspects such as prominent companies, ownerships, end user, & age analysis. Besides this, it also provides insights into the senior living market and highlights significant assisted living industry developments.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 5.94% from 2024 to 2032
Unit	Value (USD billion)
Segmentation	By Ownership Chain Affiliated Independently Owned
By End User Women Men
By Age Below 65 Years Between 65 to 74 Years 74 to 85 Years Above 85 Years
By Region North America (by ownership, by end user, by age, and by country) U.S. (By Ownership) Canada (By Ownership) Mexico (By Ownership) Europe (by ownership, by end user, by age, and by country) U.K. (By Ownership) Germany (By Ownership) France (By Ownership) Italy (By Ownership) Spain (By Ownership) Russia (By Ownership) Rest of Europe (By Ownership) Asia Pacific (by ownership, by end user, by age, and by country) China (By Ownership) India (By Ownership) Japan (By Ownership) Australia (By Ownership) Rest of Asia Pacific (By Ownership) South America (by ownership, by end user, by age, and by country) Brazil (By Ownership) Argentina (By Ownership) Rest of South America (By Ownership) Middle East & Africa (by ownership, by end user, by age, and by country) South Africa (By Ownership) UAE (By Ownership) Rest of Middle East & Africa (By Ownership)