By the year 2020, the Global Home Healthcare Market is expected to be valued at an estimated $349.8 billion US dollars, an increase from the estimated value of $227.5 billion US dollars in the year 2015, or a compound annual growth rate of 9 percent. In this five year period, the main factors that are expected to augment this market include increased prevalence of chronic diseases, increased size of the aging population, and the increase need of more cost-effective healthcare.
The home health care market is comprised of a wide range of health-related services that are offered in a patient’s home. These services are intended to provide care for various illnesses and injuries for people of all ages. Services can include:
The primary goal of home health care is to provide treatment for illnesses or injuries within the home. It offers a number of benefits for patients. For example, it is more cost-effective than hospitalization, allows for greater comfort and peace of mind, and promotes independence, among other things.
Between the years 2015 and 2020, there are several factors that are expected to boost the size and value of the home healthcare market on a global scale.
The factor that is projected to have the most significant effect on the growth of this market is cost efficiency. Home healthcare is much more cost-effective than the treatment and care provided in hospitals. For example, it is estimated that the cost of treatment for acute care in a hospital is approximately $3,300 US dollars a day, while the average cost for home healthcare per day is about $50 US dollars. The increased desire among consumers to save money and the uncertainty of the global economy make the cost of home healthcare much more appealing than hospital care.
Another factor that is expected to boost the growth of the size of the global healthcare market is the increasing size of the aging population worldwide. The World Health Organization predicts that the aging population will grow significantly during the forecasted time period. This group is prone to several health conditions, including chronic diseases that necessitate long term care. Home healthcare is not only more cost-effective for the care this demographic will require, but it is also more desirable, as patients would prefer to remain in the comfort of their own homes. Moreover, home healthcare for this group will allow for more space in hospitals and healthcare centers for patients in other groups.
The global healthcare market is comprised of several healthcare-related components or services, including. In 2015, the diagnostics equipment segment accounted for more than 35 percent of the total net value of the home healthcare market. During the forecasted time period, this segment is expected to continue experiencing significant growth. This augmentation will largely be due to the increased prevalence of chronic conditions, such as cardiopulmonary and cardiovascular diseases, diabetes and arthritis.
In 2015, the rehabilitation services segment accounted for more than 50 percent of the total net worth of the global home healthcare market. This largely attributed to the increased size of the aging population, as well as the increased incidence of surgeries as a result of trauma. In the coming years, the continued growth of the aging population will allow the rehabilitation services segment to continue experiencing significant growth.
Between 2015 and 2020, the segment of the global home healthcare market that is expected to see the most significant compound annual growth rate is the telehealth segment. The influx of growth in this segment will largely be attributed to the increased adaptation and use of telecommunication for providing home healthcare.
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The home healthcare market is segmented into different regions, which include:
In 2015, North America dominated the global home healthcare market. This region accounted for more than 40 percent of the total market share of this industry, which was largely attributed to the existence of a more enhanced medical infrastructure, heightened patient awareness, as well as higher expenditure levels in this region.
Asia Pacific is poised to experience the fastest growth during the forecasted period. The increased size of the aging population, more adoption of advanced techniques, the increased size of disposable incomes and the growth of home healthcare companies in this area, as well as the heightened awareness of home healthcare and the continuing need for more affordable healthcare are all elements that are expected to drive the growth of the home healthcare market in Asia Pacific.
The global home healthcare market is highly competitive. This is largely due to increased investments by key vendors for research and development of more advanced products, as well as regional expansions and mergers and acquisitions in order to gain an edge against competitors.
There are several companies that contribute to the home healthcare market; however, the key vendors in the global market include:
Given the projected compound annual growth rate between 2015 and 2020, the global home healthcare market is expected to be favorable for investors.