Long Term Care Market Size

Long Term Care Market Size

Long Term Care Market size exceeded USD 915 billion in 2020 and is anticipated to grow at a CAGR of over 8.5% between 2021 and 2027. Growing geriatric population opting for long term care services, especially in the developed economies is expected to boost the market growth. Incorporation of novel healthcare IT modalities in these services will promote the demand for long term care. The ongoing advancements with adoption of novel technologies to proliferate the market expansion in the coming years.

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However, factors including high cost of long term care services and poor awareness in the developing economies may negatively affect the market progression. Rising geriatric population and increasing prevalence of chronic ailments along with disabilities in developing regions promotes the market potential. Although, the lack of awareness regarding LTC in these countries may hamper the industry growth. This poor awareness is mainly owing to high cost of LTC and lack of national policies by national regulatory authorities.

The COVID-19 outbreak arose as an unparalleled health crisis that has rendered negative impact on the long term care market. The coronavirus pandemic affected millions of individuals across the globe inflicting significant mortalities. The nationwide lockdowns and emergencies declared in majority of the countries distorted the supply chain. The COVID-19 pandemic also impacted the healthcare industry by imposing tremendous strain on the healthcare facilities owing to incremental patient influx.

Healthcare facilities including nursing homes were operating with minimal capacity, with massive outbreaks being reported in medical facilities. Multiple research studies reported substantial fraction of deaths due to infection emerging from nursing homes in countries including the U.S., France, Canada, Spain, and Belgium. Several clinical studies highlighted that the aging population suffering from chronic ailments, residing at nursing homes have increased risk of severe disease and death. The CDC (Centers for Disease Control and Prevention) also stated that nursing homes are possibly the more vulnerable institutions during the COVID-19 pandemic.

The residents opting for long term care are generally suffering from comorbidities such as cardiovascular, chronic respiratory, cerebrovascular disease, diabetes, and dementia among others. These factors attribute to proliferated risk of COVID-19 progression with critical outcomes. A research study conducted in the U.S. indicated that around 65.5% of the elderly care center residents were diagnosed with dementia. Approximately 46.8% with hypertension, 20.9% suffered from stroke, 14.3% with chronic obstructive pulmonary disease, and over 20% were suffering with diabetes. Majority of the participants with more than one comorbidity increases the risk of a SARS-CoV-2 infection exponentially. In order to curb the spread of infection, the nursing homes and elderly care centers among other facilities offering long term care solutions were limited to operate at lower capacity.