Australia Aged Care Market 2025 | Worth USD 61.0 Billion by 2033

The latest report by IMARC Group, "Australia Aged Care Market Size, Share, Trends and Forecast by Services, Application, and Region, 2025-2033," provides an in-depth analysis of the Australia aged care market. The report also includes competitor and regional analysis, along with a breakdown of segments within the industry. The Australia aged care market size reached USD 32.2 billion in 2024 and is projected to grow to USD 61.0 billion by 2033, exhibiting a steady growth rate of 6.70% during the forecast period.

Report Attributes and Key Statistics:

Base Year: 2024

Forecast Years: 2025-2033

Historical Years: 2019-2024

Market Size in 2024: USD 32.2 Billion

Market Forecast in 2033: USD 61.0 Billion

Growth Rate (2025-2033): 6.70%

Australia Aged Care Market Overview:

The Australia aged care market is experiencing robust growth driven by a rapidly aging population, increasing demand for personalized and high-quality care services, and significant government funding and reforms aimed at improving care standards. The market demonstrates strong momentum with more than 22% of Australians expected to be aged over 65 years by 2026, compared to 16% in 2020, creating unprecedented demand for comprehensive aged care services. Strategic expansion is fueled by the implementation of the new Aged Care Act from July 2025, addressing Royal Commission recommendations while promoting rights-based care delivery across residential, community, and home-based settings. The sector benefits from advancing healthcare technology integration, growing emphasis on in-home and community-based care solutions, and improved financial performance with 65.9% of providers reporting net profits as workforce participation in aged care has increased from 8.31% in 2014 to 11.57% in 2024.

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Australia Aged Care Market Trends:

• Demographic Transformation driving unprecedented demand as Australia's aging population doubles from 8.3% in 1970s to over 22% by 2026, with old-age dependency ratios creating sustained care requirements

• Legislative Reform Implementation advancing through the new Aged Care Act 2025 incorporating 60 Royal Commission recommendations while establishing rights-based care frameworks enhancing quality standards

• Home Care Preference expanding rapidly as consumers increasingly choose in-home and community-based care options over institutional settings, creating new service delivery models and market opportunities

• Technology Integration transforming care delivery through digital health monitoring, AI-powered care planning, and smart home technologies improving quality while reducing operational costs

• Workforce Development addressing critical staffing needs with aged care employment growing from 8.31% to 11.57% of total workforce while implementing training and retention programs

• Quality Focus prioritizing personalized care services, evidence-based practices, and continuous improvement initiatives meeting rising consumer expectations and regulatory standards

• Financial Sustainability improving through enhanced funding models, operational efficiency gains, and strategic partnerships enabling long-term viability and expansion

Australia Aged Care Market Drivers:

• Aging Population Growth creating substantial demand as demographic shifts require expanded care capacity across residential, community, and home-based service delivery models

• Government Funding Increases supporting market expansion through enhanced aged care funding, infrastructure investment, and quality improvement initiatives promoting accessible care services

• Care Quality Expectations motivating service improvements as consumers demand personalized, high-quality care experiences tailored to individual needs and preferences

• Royal Commission Reforms driving systemic improvements through legislative changes, quality standards implementation, and accountability measures enhancing care delivery across all sectors

• Healthcare Technology Advancement enabling innovative care solutions through remote monitoring, digital health platforms, and assistive technologies improving outcomes while optimizing resource utilization

• Community Care Preference supporting market diversification as consumers increasingly prefer aging-in-place solutions over traditional residential care arrangements

• Economic Recovery facilitating sector growth as improved financial performance enables provider investment in infrastructure, technology, and workforce development initiatives

Market Challenges:

• Workforce Shortages affecting service delivery capacity as the sector struggles to recruit and retain qualified healthcare professionals across all care settings and geographic regions

• Infrastructure Limitations constraining growth potential as aging facilities require significant capital investment for modernization, compliance, and capacity expansion

• Regulatory Compliance Complexity increasing operational costs through extensive documentation requirements, quality standards adherence, and continuous assessment obligations

• Cost Management Pressures challenging financial sustainability as rising labor costs, infrastructure expenses, and regulatory requirements strain provider budgets and profitability

• Geographic Accessibility creating service gaps in rural and remote areas where care provision faces economic viability challenges and workforce recruitment difficulties

• Consumer Affordability limiting access as care costs potentially exceed consumer financial capacity despite government subsidies and support programs

• Quality Consistency requiring ongoing attention to maintain uniform care standards across diverse providers, settings, and service types throughout the sector

Market Opportunities:

• Home Care Expansion developing comprehensive in-home service programs addressing consumer preferences while reducing institutional care costs through innovative delivery models

• Technology Solutions creating opportunities through digital health platforms, remote monitoring systems, and AI-powered care management improving efficiency and outcomes

• Specialized Care Services targeting niche markets including dementia care, palliative care, and complex medical needs requiring specialized expertise and facilities

• Workforce Development establishing training programs, career pathways, and retention strategies addressing critical staffing needs while improving service quality

• Regional Market Growth expanding services to underserved areas through innovative delivery models, technology solutions, and government partnership initiatives

• Preventive Care Integration developing wellness programs, health maintenance services, and early intervention strategies reducing long-term care requirements and costs

• Public-Private Partnerships leveraging collaborative arrangements between government agencies and private providers optimizing resource utilization and service delivery

Browse the full report with TOC and List of Figures: https://www.imarcgroup.com/australia-aged-care-market

Australia Aged Care Market Segmentation:

Services Insights:

• Home Healthcare

• Non-medical health Care

• Institutional Care

• Hospital based care

• Others

By Application:

• Medical Care

• Rehabilitation

• Assistance

By Regional Distribution:

• Australian Capital Territory & New South Wales

• Victoria & Tasmania

• Queensland

• Northern Territory & Southern Australia

• Western Australia

Australia Aged Care Market News:

September 2025: The Australian Government introduced the Aged Care Bill 2024 to Parliament establishing a new rights-based Aged Care Act addressing 60 Royal Commission recommendations while incorporating extensive public consultation feedback for implementation from July 2025.

June 2025: Australian aged care providers demonstrated improved financial performance with 65.9% reporting net profits before tax as of June 2024, driven by increased revenue per resident exceeding corresponding expense growth across the sector.

March 2025: Australia's aged care workforce participation reached 11.57% in 2024, representing significant growth from 8.31% in 2014 as the sector becomes a key employment driver supporting demographic transition requirements.

Key Highlights of the Report:

• Comprehensive market analysis projecting steady growth from USD 32.2 billion in 2024 to USD 61.0 billion by 2033 with 6.70% CAGR

• Detailed examination of demographic transformation with over 22% of Australians expected to be aged over 65 by 2026 creating unprecedented care demand

• Strategic assessment of legislative reform through the new Aged Care Act 2025 incorporating Royal Commission recommendations and rights-based care frameworks

• In-depth analysis of home care preference expansion as consumers increasingly choose community-based solutions over institutional settings

• Regional market evaluation covering all Australian territories with diverse aging populations and infrastructure development needs

• Technology integration insights highlighting digital health monitoring, AI-powered care planning, and smart home solutions

• Financial performance assessment revealing improved provider profitability and workforce growth trends supporting market sustainability

Frequently Asked Questions (FAQs):

Q1: What are the primary factors driving Australia's aged care market growth to USD 61.0 billion by 2033?

A1: The market is driven by a rapidly aging population with over 22% of Australians expected to be aged over 65 by 2026, increasing demand for personalized care services, and significant government funding and reforms. The implementation of the new Aged Care Act from July 2025, advancing healthcare technology, and growing emphasis on in-home care solutions contribute to the steady 6.70% growth rate during the forecast period.

Q2: How is the new Aged Care Act 2025 impacting the market?

A2: The new Aged Care Act 2025 represents comprehensive legislative reform incorporating 60 Royal Commission recommendations while establishing rights-based care frameworks. This legislation enhances quality standards, promotes personalized care delivery across residential, community, and home settings, and addresses sustainability funding challenges, creating a foundation for long-term market growth and improved care outcomes.

Q3: What role does workforce development play in market expansion?

A3: Workforce development is critical for market growth, with aged care employment increasing from 8.31% in 2014 to 11.57% in 2024 of total workforce participation. The sector faces ongoing recruitment and retention challenges requiring strategic training programs, career pathway development, and competitive compensation to meet growing care demands driven by demographic transformation and quality improvement initiatives.

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