Source : Data Bridge DataHorizzon Research Mail Online Insider Intelligence MicroBase Technology Corp compilation
Future demand for elderly care services
According to the WHO, the senior population in emerging nations is expected to reach about 1 billion by 2050, resulting in a high demand for elder care services and, as a result, expanding the market's scope in the near future. The increase in Asia-Pacific population life expectancy and the rise in illnesses such as dementia and Alzheimer's disease among the elderly will provide attractive growth opportunities for the elder care services business in the coming years.
According to DataHorizzon Research, the Elderly Care Market was valued at USD 872.1 Billion in 2022 and is expected to reach USD 1,902.7 Billion by 2032 at a CAGR of 8.2%. Longer life expectancy and advancements in medical facilities have led to an increasing geriatric population, creating a need for robust medical infrastructure and good elderly care facilities that ensure their safety, timely medical facilities and support, and a cheerful environment.
America is on the verge of a senior care crisis as nearly 70 percent of older adults will require long-term support at some point in their lives, a new report warns. Experts say long-term medical care - which can cost up to $10,830 a month - is 'out of reach' to the majority of Americans. Only 13 percent of over 75s in major US metros able to afford assisted living without diving into their assets.
Rising patient volumes among the general population, but particularly senior citizens, will exacerbate U.S. providers’ existing labor shortage. Labor makes up about 60% of hospitals’ noncapital costs and is the largest driver of operating expenses, according to Deloitte. By 2025, US providers will face a collective shortage of about 500,000 home health aides, 100,000 nursing assistants, and 29,000 nurse practitioners, Mercer estimates.
The labor shortage and sustainability problem is a serious one, but increasing digitization in the healthcare industry can help resolve it. These new digital healthcare technologies can help bring down costs, improve care quality, and create a more sustainable business model for senior care. One of the most potentially impactful technologies is telehealth in assisted living and home care. Technology has already begun to work its way into elder care, from laptops and smartphones with large buttons and displays designed for easier senior use.
The next step in the digital transformation of senior care comes from artificial intelligence, which will eventually be able to predict patterns in seniors’ behavior and prevent falls and other emergencies before they take place. Elders who do have to go to the hospital will have access to a personalized wellness regimen waiting for them when they return home.
All of this is to say that there will be a ton of opportunity for digital disruption in senior care, which means anyone who wants to capture a share of this market needs to understand the digital healthcare ecosystem, as well as healthcare regulations.