Geriatric Care Services Market Analysis

Geriatric Care Services Market Analysis

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Based on service, the market is segmented into home care, adult day care, institutional care. The institutional care segment dominated with a value at around USD 914.1 billion in 2023 and is expected to exhibit a robust growth trend throughout the analysis period.
 

• The dominant market share is owing to comprehensive services offered within formal healthcare settings by institutional care providers which includes nursing homes, hospitals, assisted living, and independent senior living. These institutions provide a spectrum of care, encompassing round-the-clock medical supervision, assistance with daily activities, specialized medical services, and tailored care for chronic conditions. According to the National Investment Center, in 2022, there were an estimated 1,435,446 nursing care units in the U.S. The institutional care settings are committed to safety and security, equipped with emergency response systems and trained staff to ensure the well-being of elderly residents.
   
• Moreover, institutional care offers a crucial respite for family caregivers, who may find it challenging to provide full-time care at home. Professional care within institutional settings allows family members to balance caregiving responsibilities with personal and professional commitments. Thus, the aforementioned factors are anticipated to play a crucial role in propelling the future market expansion of geriatric care services.
   

Based on service provider, the geriatric care services market is segmented as public and private. The public segment held the largest revenue share in 2023 and was valued at USD 1.04 trillion and is projected to expand at a CAGR of 7.5% during the forecast period to reach a market value of USD 2.03 trillion by 2032.
 

• Public geriatric care services are often designed to be accessible and inclusive, ensuring that a broad spectrum of the elderly population can benefit from essential care and support. This inclusivity is vital in addressing the diverse healthcare requirements of seniors.
   
• These services benefit from government initiatives and funding, contribute to the development and sustenance of comprehensive programs. Public funding enhances the affordability and availability of services, making geriatric care accessible to a larger population base. Therefore, the critical role of government supported initiatives in meeting the healthcare needs of the ageing population is expected to drive the segment's growth during the forecast period.
   

Based on payment source, the geriatric care services market is segmented into public insurance, private insurance, out-of-pocket, and other payment sources. The public insurance segment held a dominant share in 2023 and is projected to reach more than USD 2.02 trillion by 2032.
 

• Public insurance programs, such as Medicare and Medicaid in the U.S. offer extensive coverage for a wide range of geriatric care services. As per a recent report published by KFF.org, in 2023, Medicare provides health insurance coverage to 65 million people in the U.S., including 57 million older adults and nearly 8 million younger adults with disabilities. This broad coverage ensures that a significant portion of the elderly population has access to essential healthcare services, including medical treatments, preventive care, and long term care.  
   
• Moreover, substantial government support and funding in developed regions of the world ensure the financial sustainability of geriatric care services. This support contributes to the affordability of care for seniors and facilitates the expansion of services to meet the growing demands of an ageing population.
   

Based on age group, the geriatric care services market is segmented into 65-70 years, 71-75 years, 76-80 years, 81-85 years, 86-90 years, and above 91 years. The 86-90 years segment held a dominant market share in 2023 and was valued at around USD 516.9 billion.
 

• Individuals aged 86-90 years typically experience an escalation in healthcare requirements due to the natural aging process. This includes a higher likelihood of chronic conditions, age-related health issues, and the need for more comprehensive and specialized care. 
   
• This age group often grapples with a higher prevalence of chronic diseases such as cardiovascular conditions, arthritis, and neurological disorders. The management of these chronic conditions necessitates ongoing medical attention, contributing to the demand for geriatric care services.
   

Based on application, the geriatric care services market is segmented into high blood pressure, Alzheimer's/dementias, depression, diabetes, and other applications. The Alzheimer’s/dementias segment accounted for a significant market share in 2023 and was valued at over USD 409 billion. This high market share is attributable to an increasing prevalence of dementias and related conditions.
 

• According to the World Health Organization (WHO), in 2022, the number of individuals with dementia worldwide was approximately 55 million, and this number is expected to reach approximately 78 million by 2030 and 139 million by 2050. The prevalence of Alzheimer's and dementia cases has witnessed a notable increase globally. The growing ageing population and associated risk factors have contributed to a higher incidence rate, driving the demand for healthcare solutions within this segment. 
   
• Moreover, these conditions often require comprehensive and specialized care approaches. This includes medical treatments, cognitive therapies, caregiver support, and various interventions to enhance the quality of life for both patients and their families. Therefore, the increasing prevalence of dementia coupled with the rising ageing population globally is expected to fuel the demand for geriatric care services.
   

The U.S. dominated the North American geriatric care services market with a significant market share in 2023 and is anticipated to expand at a notable pace to reach more than USD 1.06 trillion by 2032.
 

• This notable market share can be attributed to various factors, including robust healthcare infrastructure, ageing population, and the demand for specialized care services for seniors, among other key drivers.
   
• The U.S. boasts a highly advanced healthcare infrastructure, comprising medical facilities, research institutions, and a well-established network of healthcare providers. This infrastructure supports the delivery of comprehensive geriatric care services.
   
• The country has a growing aging population, with a large percentage of seniors requiring various levels of care and support. This demographic trend has led to an increased demand for geriatric care services, ranging from in-home care to specialized care in assisted living or nursing home settings.
   
• Moreover, medical insurance-providing companies such as Medicare and Medicaid in developed countries including the U.S. have focused their efforts on developing reimbursement policies for the geriatric population suffering from various chronic diseases. Such a favourable scenario for better patient care and management proves beneficial for the overall business progression in the country.