Market Trends of Global Long Term Care Industry
This section covers the major market trends shaping the Long Term Care Market according to our research experts:
Nursing Care Segment Projected to Have Notable Growth Rate Over the Forecast Period
A nursing home/care is a place where elderly or disabled people can receive residential care. The presence of several facilities offering nursing care to the growing aging population worldwide is a major factor driving the nursing care segment's growth. Many nursing homes are increasingly taking a more holistic approach to long-term care. The nursing staff is treating home residents as complex individuals rather than only treating their symptoms resulting from medical conditions. These are focused on cultivating wellness and improvement over illness and maintenance.
During the COVID-19 pandemic, there was a significant influence on the elderly population, particularly those living in long-term care facilities, with a significant impact on mortality and morbidity. Thus, strenuous action was required to alleviate the impact of COVID-19. This was achieved by addressing nursing staff shortages and safeguarding the health of their staff as they cared for sick patients. As of June 2021, a report by "The American Health Care Association and the National Center for Assisted Living (AHCA/NCAL)" surveyed 616 nursing facilities and found that 94% of them are suffering from a staffing deficit. As a result, long-term care facilities had to find new and more effective ways to recruit and retain nursing staff to meet the care demands.
Thus, considering the above trends, such as the presence of many facilities providing nursing care and medical supervision and a growing need for nursing staff, the segment is anticipated to witness growth over the forecast period.
North America Dominates the Market and the Region is Expected to do the Same Over the Forecast Period
North America holds the major share in the long-term care market during the forecast period. This region is leading owing to factors such as the increasing geriatric population, favorable government policies, and more insurance coverage.
According to the Department of Health and Human Services (HHS), 7 out of 10 seniors who reach the age of 65 are now projected to need long-term care (LTC). It is anticipated that 24 million Americans will require long-term care by 2030. Thus, these factors benefit the growth of the market in this region. Moreover, government initiatives and programs to support people in their old age are likely to boost the market's growth. For instance, in April 2022, the World Health Organization (WHO) stated that due to the rapidly aging population, health and social care systems need to be transformed to provide integrated, person-centered care that takes older adults' needs, objectives, and preferences into account. For that purpose, WHO developed the integrated care for older people (ICOPE) approach and a three-phase implementation pilot program to support the Member States, including the United States, in adapting to the provision of integrated care.
Furthermore, company developments and joint ventures that promote the growth of long-term care settings are more common in North America. For instance, in March 2022, Canada-based long-term care company Extendicare announced an agreement to acquire a 15% managed to interest in 24 long-term care homes from Revera and formed a redevelopment joint venture with Axium. This agreement allowed 56 long-term care homes to double the Extendicare assisted portfolio of managed homes.
Thus, these aforementioned factors are likely to boost the market's growth in the North American region.
