Ambient Assisted Living (AAL) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The global ambient assisted living market (henceforth, referred to as the market studied) was valued at USD 1.25 billion in 2019, and it is expected to reach USD 3.80 billion by 2025, registering a CAGR of 21.6 %, during 2025-2025 (henceforth, referred to as the forecast period).

• With the advent of IoT and growing internet penetration, various AAL solutions and services, such as telehealth, telecare, telemedicine, telecoaching, and mHealth, are gaining traction. Also, physicians’ acceptance of digital healthcare tools into their practices is increasing, owing to the improved efficiency and safety. According to a study done by the American Medical Association (AMA) conducted in 2016 and repeated in 2019, tele-visits/virtual visit adoption increased to 28% from 14%, remote monitoring and management adoption grew from 13% to 22%, and remote monitoring efficiency adoption grew from 28% to 37%.​
• Previously, the costs associated with AAL services were comparatively higher, as a number of services, such as monitoring, collecting data and samples, diagnosis, and check-up, were done manually, requiring either the doctor or the patient travel. With the latest technological innovations, the costs associated with such care have been decreasing. For instance, according to a study by RAND Corp., in the United States, an appointment via telemedicine costs USD 79, on average, as compared to USD 146 for doctor's office visits and USD 1,734 for an emergency room visit. ​
• Globally, the number of people aged above 80 years was projected to increase by more than threefold between 2017 and 2050, rising from 137 million to 425 million. Additionally, the global population is aging at a faster rate, and the numbers are higher in certain regions and countries. For instance, according to the UN, Europe has the highest percentage of the aging population, as compared to the total population in the country, followed by North America. ​
• Since the recent COVID-19 outbreak, the healthcare industry has been subjected to severe pressure to handle the pandemic infected patients and keep track of regular check-ups and monitoring of elderly and vulnerable patients. With hospital premises becoming a health hazard for the elderly, who are at high risk of infection and have low immunity, the demand for elderly care outside the hospital premises is gaining traction.​ The acceptance of telemedicine and telemonitoring due to the pandemic has resulted in the growing acceptance of e-health. According to a study by healthinsurance.com, which collected data from over 1,000 senior respondents, over 40% of respondents mentioned that they used telemedicine from the beginning of the pandemic, with 30% saying they used it once a month. Such developments favor the AAL market, as the pandemic effects augment the demand.​
• Over the coming months, the demand for assisted living services for elderly homes in North America, Europe, and some parts of Asia is expected to surge, along with devices that help monitor and collect vital data and communicate with healthcare professionals. The pandemic is expected to work as a catalyst for the AAL adoption, and effects may continue on a higher note due to smart home technologies' proliferation.​

Scope of the Report

• The study analyzes the current market scenario and key influencers for the ambient assisted living (AAL) industry across various geographies.
• The study also analyzes the market for ambient assisted living, which includes products and services for accident detection and activity monitoring, emergency alarms, and other connected products that are aimed to support the independent living of elderly people and enable them to make improved health choices.
• The study also analyzes the market dynamics across various types of products and countries, in terms of their trends, developments, and demand projections.
• The competitive landscape includes key vendor profiles, covering vendor business overview, segment and regional developments, product offerings, strategies, and recent developments.

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Key Market Trends

Increasing Chronic Diseases and Growing Aging Population are Expected to Drive the Market Growth

• The global population is aging rapidly due to various government initiatives to enhance the longevity revolution. Most developed nations are increasingly observing growth in the aging population. According to the UN data, in 2019, there were 703 million people aged 65 or older, and the number is projected to reach 1.5 billion by 2050.​
• Moreover, the number of people aged 80 or more is expected to triple in the next 30 years, and in many regions, the population aged 65 will double by 2050. With the growing aging population, the number of chronic diseases patients is expected to increase in the upcoming years.​
• The world is observing a significant increase in the number of chronic diseases, especially in hypertension, diabetes, and respiratory problems. According to IDF, in 2019, 463 million adults were living with diabetes, and by 2045 this is expected to increase to 700 million. 1 in 5 of the people that are above 65 years have diabetes. ​
• In addition to this, 235 million people had asthma, and it is common among children, according to WHO. More than 3 million people die of COPD each year, an estimated 6% of all deaths in the world. In addition to this, an estimated 1.13 billion people worldwide have hypertension.​
• Particular nations are increasingly observing growth in the number of populations that are facing chronic diseases. For instance, according to the CDC, 6 in 10 adults in the United States have a chronic disease, and 4 in 10 adults have two or more heart disease, cancer, chronic lung disease, stroke, and diabetes ailments.​
• Chronic respiratory and cardiovascular diseases among the elderly are increasingly becoming prevalent. According to the American Heart Association (AHA), about 43.7 million Americans aged 60 and above have one or more cardiovascular disease types such as stroke, heart attack, heart failure, and about two-third of cardiovascular disease deaths occur in people age 75 and older.​

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