According to a recent report from The Business Research Company, the global nursing care market will grow to more than $1,100 billion at an annual rate of 8.6% to 2022. The market will be driven by the growing aging population and the introduction of robots to complement overburdened care workers, reducing current labor shortage issues that are restraining the market.
From 2014 to 2018, the number of people globally over the age of 65 grew from below 450 million to 550 million, an increase of 33%, according to estimates based on Population Reference Bureau data. As in-home nursing care and residential nursing care are primarily needed by the elderly, this significantly boosted market growth during this period. Furthermore, the increase in the aging population expanded the patient pool suffering from chronic diseases such as diabetes, rheumatoid arthritis, hypertension, diabetes and cancer. As of 2017, around 33% of the US adults over 65 years had diabetes.
The aging population will continue to drive the nursing care market. From 2018 to 2022, the number of people over 65 is expected to increase from approximately 550 to 650 million globally, an increase of 18% according to the Population Reference Bureau.
Growth Drivers & Restraints in Nursing Care Services
Further driving the nursing care market will be the introduction of robots in care homes, which can act as humanoid companions and prevent loneliness in residents. These robots are artificially intelligent and are equipped to understand the needs of the elderly, enabling them to interact with residents as a normal person would. This may help care workers who are overburdened and not always able to be present with residents. Robotic technology has the potential to help care homes deal with greater demand and staff shortages, facilitating future market growth.
However, The Business Research Company report also estimates that the increasing number of home health care entities falling into insolvency will be a major restraint on the nursing care market over the forecast period . For instance, in 2017, there was an 83% increase in the number of care home businesses entering insolvency in the UK compared to 2016.
The key reasons for insolvency in such organizations include increased financial pressures caused by rising minimum wages for healthcare professionals, budget cuts, and high fees charged by local authorities. These factors are expected to continue to increase pressures on home care organizations going forward and subsequently hinder growth.
Rapid Market Growth in Asia-Pacific & the Middle East
North America is the largest market for nursing care, accounting for almost 40%. This can be attributed to the presence of a large geriatric population, and high healthcare expenditures in the region. In particular, the large number of senior citizens in North America supports the demand for nursing care.
In terms of market size, North America is followed by Western Europe, Asia-Pacific, and then other regions. Going forward, Asia-Pacific and the Middle East will be the fastest growing regional segments, where growth rates will hit nearly 14% and 15%, respectively.
Key Market Segments & Major Nursing Care Providers
In The Business Research Company's report, the nursing care industry is segmented by type, broken out by home healthcare providers, nursing care facilities, group care homes and retirement communities. The nursing care facilities market was the largest segment in 2018, accounting for 43% of the market. This can be attributed to the large patient pool for nursing care facilities globally. Home healthcare providers was the second largest market segment.
The retirement communities’ market is expected to be the fastest-growing segment going forward, expanding at a rate of nearly 10%.
The global nursing care market is highly fragmented, with no truly global brands. The top ten competitors in the global nursing care market made up more 3.1% of the total market in 2018. Players in the market include:
- Genesis Healthcare
- Kaiser Permanente
- Brookdale Senior Living
- Kindred Healthcare, LLC
- The Ensign Group, Inc.
Where to Learn More
Nursing Care Global Market Opportunities And Strategies To 2022 from The Business Research Company is one of a series of industry reports. The report provides nursing care industry analysis, a nursing care market overview, analysis and forecasts of market size and industry statistics, nursing care market growth rates, market trends, market drivers, market restraints, market revenues, nursing care market shares, and company profiles of the leading competitors.
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About The Business Research Company
The Business Research Company is a market research and intelligence firm that excels in company, market, and consumer research. It has research professionals at its offices in the U.K., India, and the U.S. as well as a network of trained researchers globally. It has specialist consultants in a wide range of industries including manufacturing, healthcare, financial services, and technology.
The Business Research Company’s management team has more than 20 years of varied business research experience. They have delivered hundreds of research projects to the senior management of some of the world’s largest organizations. The Business Research Company’s consultants have master’s qualifications from top institutes and include MBAs, MSCs, CFAs, and CAs. The Business Research Company’s consultants gain training and qualifications from the Market Research Society and are trained in advanced research practices, techniques, and ethics.
