Home Healthcare Market Size, Share & Industry Analysis, By Type (Services {Physician Care, Nursing Care, Physical, Occupational & Speech Therapy, Nutritional Care}, and Products {Diagnostic [Blood Glucose Monitors, Pulse Oximeters], Treatment [Renal Care, Infusion Pumps, Ostomy Care, Respiratory Care], and Supportive Care [Mobility Care, Clinical Nutrition, Continence Care]}), By Therapeutic Area (Cancer, Neurological Disorders, Mobility Disorders, Diabetes, Cardiovascular Disorders, Wound Care, Gastrointestinal Disorders), By Payor (Private, Public), Regional Forecast, 2024-2032

The global home healthcare market size was valued at USD 362.79 billion in 2023. The market is anticipated to grow from USD 381.55 billion in 2024 to USD 811.78 billion by 2032, exhibiting a CAGR of 9.9% during the forecast period. North America dominated the home healthcare market with a market share of 42.53% in 2023.

Home healthcare comprises a wide range of healthcare services offered to patients in home settings. These services include monitoring severe illnesses and injuries, providing intravenous and nutrition therapy, wound care, respiratory therapy services, and other treatments. The market is expected to grow significantly throughout the forecast period owing to the quality of care provided at an affordable price compared to the services offered in hospitals or skilled nursing facilities.

Moreover, the percentage of the geriatric population is growing at a robust pace each year, which has made these services more popular among them as they are at a higher risk of suffering from various chronic illnesses. According to the World Health Organization (WHO) 2022 report, the population aged 60 years and above will increase from 1.20 billion to 1.40 billion by 2050. Additionally, this age group is more likely to develop chronic disorders, such as cancer, neurological disorders, mobility disorders, and heart diseases. This scenario will raise the demand for home health services to provide long-term care, thereby propelling the market growth during the forecast period.

Moreover, the market is highly fragmented with the presence of key players, such as Abbott, Nestlé, and Medtronic, among others. The majority of market players started enhancing their brand image and customer reach in the market by participating in medical conferences. In addition, majority of companies started focusing on strategic acquisitions and collaborations among the major players to create awareness about its products, which can be used at their homes, is also supporting the increasing share of the company.

• For example, in June 2023, Abbott collaborated with the American Diabetes Association, which aimed at better understanding diabetes technology, such as continuous glucose monitoring (CGM) systems, in improving patients' lifestyles. This increased the demand for the company’s diabetes care products, which can be use at homecare settings.

The growing number of surgeries across the globe is also anticipated to boost the demand for these services in the forthcoming years, as post-acute care at home is highly recommended by doctors after discharge from hospitals. Additionally, initiatives by public and private insurance providers to include home health services in their schemes will increase the adoption of these services and augment market growth.

MARKET DYNAMICS

Market Drivers

Rising Inclination toward Home Health Services to Augment Market Growth

Countries across the globe are experiencing a substantial increase in the burden of various chronic disorders, such as diabetes, cancer, cardiovascular disorders, and others. This trend is increasing the average hospital admission rates. However, treating these illnesses incurs high costs, prompting patients to shift their preference toward cost-effective treatment models, such as home health services.

• For instance, a study published in NCBI in 2022 compared the costs of inpatient hospitalization and home healthcare. It was found that the cost of home treatment was around USD 5,000 cheaper compared to hospitalization.

Additionally, treatment in home care settings has various essential benefits over hospital treatment. One such benefit is the reduced risk of acquired infection by many folds. Post-surgery recovery and other serious illnesses may weaken patients' immune systems and make them prone to various infections.

Thus, benefits associated with home-based treatments and their cost-effectiveness are a few factors driving market growth.

Market Restraints

Growing Incidence of Frauds by Home Health Service Providers are Likely to Hinder Market Growth 

Despite many advantages of home healthcare services, there is a rising concern about fraudulent activities that is limiting the adoption of these services among patients. The nature of fraud in home healthcare varies, however, the majority involve home health agencies billing for services that were not provided or not medically necessary.

Moreover, as per Medicare & Medicaid, newly enrolled home health agencies and durable medical equipment suppliers are more likely to engage in fraud.

• For instance, in September 2023, the owner of the Home Health company was found guilty of participating in a USD 2.8 million Medicare fraud scheme.


• In September 2022, a Lowell nurse was found guilty in federal court for involvement in a USD 100.0 million Home Health Care fraud and kickback scheme.

These instances have made patients reluctant to adopt these services, thereby restricting the global market growth.

Market Opportunities

Expansion into Emerging Markets with Underdeveloped Healthcare Systems

Countries with higher aging populations and underdeveloped healthcare infrastructure created lucrative opportunities for market players to expand their product and service offerings in the countries of Asia Pacific and Middle East & Africa regions.

• For example, in January 2024, China’s population aged 60 and above was about 297 million, which was about 21.1% of the overall population in 2023. This number is expected to increase to more than half a billion by the end of 2050.

In addition, the integration of artificial intelligence (AI) and smartphones with home healthcare systems provides better treatment at patient’s homes. Some of the market players already started providing devices that can be connected to smartphones for use in homecare settings.

• For instance, in April 2023, OMRON Corporation collaborated with Tricog, an AI company, to enhance blood pressure & personal healthcare monitoring in India.


• For example, in October 2022, OMRON Corporation upgraded its portfolio of blood pressure (BP) monitors by converting them into “connected” devices. These devices can be connected to patient’s smartphones via the “OMRON connect” application to facilitate real-time and convenient tracking both for users and physicians.

Furthermore, in terms of future prospects, predictive analytics will play an important role in population health management within remote patient monitoring (RPM) programs. By utilizing data-driven insights and advanced modeling techniques, healthcare professionals can improve the treatment of a wide range of patient populations.

Market Challenges

Staffing Shortages: The demand for skilled healthcare professionals exceeds supply, affecting service delivery. At the beginning of 2024, staffing woes remain acute for home- and community-based care providers.

For example, as per the data provided by the Home Health Care News (HHCN) in January 2024, ANCOR, an advocacy organization representing over 2,000 community-based providers, conducted a survey of almost 600 providers, specifically those serving individuals with intellectual and developmental disabilities in 2023. The survey results showed the current state of staffing for home- and community-based providers. Approximately 95% of providers reported experiencing moderate to severe staffing shortages in the previous year.

Cost Concerns: The cost concerns associated with home healthcare services can be considered a significant challenge in many countries. For example, as per the data provided by Care Indeed, Inc. in June 2024, the national median cost for home health aide services is USD 5,148.0 per month. Moreover, the high cost of medical equipment presents a challenge for patients who need treatment at their home.

Regulatory Compliance Issue: Majority of market players are facing issues with getting regulatory approvals for products used in home healthcare settings. There are different regulatory guidelines for different countries, making it challenging for market players to get approval for medical devices that can be used in home care settings.

Moreover, technological advancements in medical devices that can be used in homecare settings hinder their adoption among patients. These advanced devices often require specialized training, which may deter use. Moreover, state-of-the-art home care devices are available at a higher cost, reducing their accessibility to the general population.

Home Healthcare Market Trends

Integration of Telehealth Platforms to Raise Adoption of Home Health Services

Earlier, telehealth platforms were not popular among home health service providers. However, the onset of the COVID-19 pandemic increased the adoption of telehealth services within the home healthcare sector. As telemedicine is transforming patient care, various key players operating in the market have shifted their focus to utilizing telehealth platforms to offer better services to their customers. The growing inclination toward adopting telehealth platforms to offer better healthcare services at home is expected to raise the adoption of these services.

• For instance, in February 2022, BAYADA Home Health Care launched a new digital service that consisted of digital care transition and coordination solutions to help hospitals better serve patients at home.

Companies are offering diagnostic and treatment products that can be used exclusively in home care settings. They are also focused on strengthening and expanding their product portfolios by launching new and innovative products in the market and partnering with home health service providers. Such initiatives are expected to increase the adoption of these services due to the rising demand for advanced products among these service providers.

• For instance, in January 2021, Tyto Care, a U.S.-based company, launched a pulse oximeter integrated with a telehealth platform to expand at-home health monitoring.

In recent years, the monitoring of patient's health from their homes has become an increasingly popular option in many countries, as it allows for real-time data collection and timely interventions. In addition, remote patient monitoring works well with telehealth services, making home healthcare the optimal choice for patients experiencing health-related limitations that make traveling impractical. Several factors have led to many healthcare providers implementing remote patient monitoring. Some of these factors include advanced medical technology, the ability to monitor health complications in remote locations, and rising awareness regarding telehealth among patients and providers.

Other Ongoing Trends:

Shift Toward Patient-Centric Care: The increasing focus of healthcare providers on offering personalized, convenient care at home, especially for patients with chronic conditions, is considered one of the significant market trends.

Technological Advancements: The availability of home-use medical devices with smart technologies that connect directly to a patient’s smartphone, allowing healthcare providers to monitor and interact with patients, is making healthcare more accessible.

Government Support and Policies: Favorable regulatory frameworks and reimbursement policies are boosting market growth.

For example, in June 2022, the Government of India, Ministry of Social Justice and Empowerment, provided new rules for home care and hospice care service providers. As per new rules, home care organizations can be professionally and legally responsible for all activities for providing home care services.

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Impact of COVID-19

The COVID-19 pandemic slowed the home healthcare market growth. Both developed and developing nations observed a decline in demand for these services due to rising concerns regarding the transmission of infections among patients and a reduction in surgeries. Additionally, many home health agencies reported a decline in revenues during the pandemic as demand for home visits decreased, particularly since most of the patients were above 65 years old and at increased risk of contracting the infection.

However, the market is anticipated to recover during the post-pandemic period due to the resumption of various healthcare facilities, such as surgeries, home care visits, and integration of teleconsultation, among others. Additionally, many service providers have observed an increase in the demand for these services after the pandemic.

TRADE PROTECTIONISM AND MARKET DYNAMICS

Tariffs and trade restrictions imposed by governments of various countries can affect the availability of home healthcare products. In addition, devices used in patient’s homes are reshaping the medical landscape. As these devices become an integral part of patient care, protecting their innovations through patents becomes paramount. Proprietary technologies, particularly those that enhance patient outcomes or optimize device functionalities, are prime candidates for patent protection.

Furthermore, regulatory discrepancies and restrictions on the import/export of homecare medical devices can impact global market penetration.

Segmentation Analysis

By Type

Rising Adoption of Home Healthcare Services Fueled Services Segment Growth

Based on type, the market is segmented into services and products. The services segment is divided into physician care, nursing care, physical, occupational & speech therapy, nutritional care, and others.

The product segment is categorized into diagnostic, treatment, and supportive care segments. The diagnostic segment is divided into blood glucose monitors, pulse oximeters, blood pressure monitors, and others.

Moreover, the treatment segment is divided into renal care, infusion pumps, ostomy care, respiratory care, wound care products, and others. The infusion pumps segment is subdivided into volumetric pumps, syringe pumps, elastomeric pumps, insulin pumps, enteral pumps, and others. On the other hand, the ostomy care segment is divided into ostomy care bags and accessories. Furthermore, the respiratory care segment is categorized into nebulizers, oxygen concentrators, and others. Also, the wound care products segment is subdivided into advanced wound dressings, traditional wound dressings, negative pressure wound therapy (NPWT), and others.

Similarly, the supportive care segment is categorized into mobility care, clinical nutrition, continence care, and housekeeping supplies. The mobility care segment is divided into wheelchairs & scooters, walking aid devices, and others. On the other hand clinical nutrition segment is sub-categorized into oral, parenteral, and enteral tube feeding. Moreover, the continence care segment is subdivided into briefs & diapers, underpads & liners, and others.

The services segment dominated the market in 2023 and is expected to grow at the highest CAGR from 2024-2032. This is due to the rising demand for treatments at home. The geriatric population is growing at a notable pace, which has increased their risk of being diagnosed with chronic diseases.

• For example, as per the data provided by the World Health Organization (WHO) in October 2024, around one in six people across the world will be aged 60 years and above by 2030. The global population aged 60 and above was 1.00 billion in 2020 and is expected to increase to 1.40 billion by 2030 and 2.10 billion by 2050.

Additionally, rising cases of chronic conditions, such as neurological disorders, cardiovascular disorders, and mobility disorders, which are more common in the old age population, is generating demand for home-based treatment.

Furthermore, the increasing demand among patients for proper care post-surgery, the affordability of these services for the middle-income group, and the launch of new services by home health agencies are key factors contributing to market development.

The product segment is also anticipated to witness considerable growth during the forecast period. The growing initiatives by key players to launch innovative products to provide home health services, adoption of advanced products by home health agencies, and approval of a variety of devices by regulatory bodies to be used in homecare settings will augment segment growth.

• For instance, in October 2022, CommScope announced the launch of HomeSight, a new connected care system enabling the provision of innovative remote healthcare and homecare services.


• In February 2022, CVS Pharmacy launched six home health products to expand its existing health product line. The new product range comprises comfort grip canes, easy-fold travel walkers, convertible shower chairs, and other items.

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By Therapeutic Area

Rising Prevalence of Diabetes and Diabetes-Associated Disorders to Propel Market Progress

In terms of therapeutic areas, the market is categorized into cancer, neurological disorders, mobility disorders, diabetes, cardiovascular disorders, wound care, gastrointestinal disorders, respiratory disorders, pain management, and others.

The diabetes segment accounted for the largest share of the market in 2023 owing to the rising number of patients suffering from the ailments and its related complications, such as diabetic ulcers. Old-aged diabetic patients who require frequent hospital admissions, suffer from diabetic foot or ulcers, and need multiple medications are shifting their preference toward home health services, as this option is more cost-effective than hospital care. Moreover, specially trained caregivers offer better assistance to diabetic patients at home as compared to hospitals.

• For instance, according to the International Diabetes Federation, in 2021, an estimated 537 million adults aged between 20 and 79 years suffered from diabetes across the globe. Additionally, about 40-60 million people suffer from complications, such as diabetic foot and lower limb issues.

Neurological disorders are the second leading segment of the market in 2023. The rising prevalence of various neurological disorders, such as Alzheimer’s, Parkinson's disease, traumatic brain injuries, and others requires special nursing care, increasing the demand for these services.

• For example, according to data published by the Alzheimer's Association, in 2022, about 6.5 million American citizens aged 65 years and above were living with Alzheimer’s. The number is projected to increase to 12.7 million by 2050.

Furthermore, home healthcare services offer several benefits for the management of neurological disorders, such as personalized care, comfort and familiarity, cost-effectiveness, and enhanced quality of life.

Cardiovascular disorders and cancer segments might exhibit significant growth during the forecast period. The growing incidence of cancer and the rising burden of various cardiovascular disorders are some of the key factors enhancing segment growth. Additionally, various companies and healthcare organizations are launching homecare-based services to provide cost-effective treatment for these disorders.

• For instance, in September 2022, Jivika Healthcare launched at-home chemotherapy services, ChemoAtHome, in Mumbai.

By Payer

Rising Adoption of Public Insurance in Developing Countries to Propel Market Progress

Based on payer, the market is segmented into public and private.

The public segment dominated the market by accounting for the major proportion of the global home healthcare market share in 2023. Public sector held the largest market share in 2023. The segment's rapid growth is attributed to collective initiatives by Medicare, Medicaid, and other public health insurers to provide affordable healthcare in countries such as the U.S., Australia, Germany, and others.

• For instance, in Germany, the public health insurance firm, gesetzliche Krankenversicherung, (GKV), covers healthcare, and about 89% of Germans are enrolled in public health insurance.

The growing adoption of private insurance due to the higher sum insured by third-party insurance companies and the availability of advanced medical care, is expected to support market growth in the forthcoming years.

• For instance, according to data published by the U.S. Census Bureau, in 2021, an estimated 91.4% of the total U.S. population had health insurance. 66.5% of the insured opted for private insurance plans comprising employment-based, TRICARE, and other options.

Home Healthcare Market Regional Outlook

Based on geography, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America:

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By region, North America generated a revenue of USD 154.29 billion in 2023 and is predicted to dominate the market throughout the forecast timeline. The rising preference of patients toward home healthcare due to advantages, such as privacy, convenience, cost-effectiveness, and availability of reimbursement for various home health services.

Additionally, presence of key service providers, expansion of services, and launch of innovative products by medical device manufacturers for use in home health settings and services will further promote market growth.

• For instance, in September 2022, Parkland Health launched its “Hospital Care at Home” program to deliver high-quality hospital care in comfort of patient’s home. The program is launched to reduce the costs for care.

Asia Pacific:

Asia Pacific is expected to record the fastest CAGR during the forecast period. The growing percentage of elderly population in the region, coupled with the rising incidence of chronic disorders among them, are key factors contributing to market progress. Moreover, increasing awareness among people regarding the availability and affordability of home health services, improving healthcare infrastructure, and the launch of various home health solutions by the regional players will also positively impact the regional market outlook.

• For instance, in November 2021, Woodland Hospital launched home care services in India, offering nursing care and health check-ups. These services also comprise a single visit by doctor, package consultation for up to five family members, and post-surgery care for 15 days.

Europe:

Europe is anticipated to witness considerable growth during the study period. The presence of key manufacturers and service providers, their strategic initiatives to expand product portfolios, a conducive environment provided by governments to set up new home health startups, and growing awareness in the region are market growth.

The rising elderly population in Europe is another factor responsible for regional growth. Elderly population needs more healthcare services at home, as it is more difficult for them to access hospital facilities.

• For instance, as per data published in March 2022, Europe has the largest elderly population in the world. The proportion of the elderly population in Europe is around 19.0%, followed by North America and other regions.

Additionally, Latin America and the Middle East & Africa accounted for a comparatively lower market share in 2023. However, both regions are projected to observe considerable growth during the forecast period. Increasing initiatives by the governments to promote these services in the region and shifting focus of the manufacturers to launch innovative products are boosting market growth.

COMPETITIVE LANDSCAPE

Key Industry Players

OMRON Corporation Dominated the Market Owing to its Wide Product Portfolio for Home Use

This market has a robust presence of several reputed companies. Organizations such as OMRON Corporation, Baxter, and others accounted for a significant share of the global market in 2023. Among these key players, OMRON Corporation held the largest market share owing to its wide range of product offerings, such as blood pressure monitoring devices, pulse oximeters, nebulizers, and other products generally used in healthcare facilities, including home healthcare settings. Furthermore, the company’s strategic initiatives to strengthen its market position and increase sales contributed to its revenue growth.

• For instance, according to the December 2021 press release by OMRON Corporation, the company’s blood pressure monitor sales increased by 20%, totalling 2.4 million units sold globally.

Fresenius Kabi AG also held a significant position in the global market in 2023. The company’s rising initiatives to provide products and services for renal diseases, the  launch of new products for home-based usage, and its strong geographical positioning are the key factors promoting the company’s growth.

• In May 2020, Fresenius Medical Care enhanced its offering for home dialysis in the Europe, Middle East & Africa (EMEA) region after the acquisition of U.S.-based NxStage. This acquisition allowed the company to provide patients with a wide choice of at-home treatment options.

Other leading players in the market are Baxter, Masimo, and Abbott. Their launch of new products, expansion of offerings for home use, strategic initiatives to strengthen their presence have all contributed to their progress in the market.

List of Key Market Players Profiled in this Report:

• Amedisys (U.S.)


• Trinity Health (U.S.)


• LHC Group, Inc. (U.S.)


• Portea Medical (India)


• BAYADA Home Health Care (U.S.)


• AccentCare, Inc. (U.S.)


• Cadence Solutions, Inc. (U.S.)


• The Pennant Group, Inc. (U.S.)


• Abbott (U.S.)


• Baxter (U.S.)


• Masimo (U.S.)


• OMRON Corporation (Japan)


• Fresenius Kabi AG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• June 2024 - Abbott received FDA clearance for two new OTC continuous glucose monitoring (CGM) systems, Lingo and Libre Rio, based on its FreeStyle Libre technology. This diversified the company’s product offerings, supporting its expansion.


• November 2023 - Masimo’s W1 medical watch received FDA 510(k) clearance for over-the-counter (OTC) and prescription use (Rx). This expanded its indications in the U.S., allowing use by adults in the home, hospitals, clinics, and long-term care facilities.


• April 2023 - AccentCare formed a joint venture with Memorial Hermann Health System to combine their home health and hospice operations in Texas.


• December 2022 - Amedisys completed a home health joint venture with the University of Arkansas for Medical Sciences with an aim to offer spectrum of medical care to patients in their homes.


• November 2022 - The Pennant Group, Inc. acquired Wisconsin Home Health Provider to provide skilled home health and community health services in Kenosha, Wisconsin.


• September 2022 - BAYADA Home Health Care announced a partnership with Jefferson Health to expand access to in-home care along with improving patient experience in Philadelphia.


• September 2022 - LHC Group, Inc. announced its partnership with the University of Maryland Medical System to provide advanced at-home health services across a large area of Maryland.


• August 2022 ­- Baxter received approval for its Novum IQ Syringe Infusion Pump with Dose IQ safety software, which will increase its product offerings.


• January 2022 - OMRON Corporation introduced its remote patient monitoring services globally, connecting blood pressure monitors to an advanced mobile app. The services include VitalSight in the U.S., Hypertension Plus in the U.K., and HeartVoice in Singapore.

REPORT COVERAGE

The global market report provides qualitative and quantitative insights into market analysis, market size, and growth rate for all segments in the market. Along with this, the report offers a global overview and an elaborative analysis of the regional market dynamics and competitive landscape. Various key insights presented in the report include the prevalence of chronic disease – for key countries/regions, aging population statistics – for key countries/ regions, new product launches, and key industry developments – mergers, acquisitions, and partnerships in recent years.

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Report Scope & Segmentation