Private Nursing Services Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Private Nursing Services Market Trends and Insights

Aging Population and Rising Life Expectancy

The global cohort aged 65 and older reached 771 million in 2024 and will top 1.5 billion by 2050.^{[2]United Nations, “World Population Prospects 2024,” un.org}In Japan, 29.1% of citizens were over 65 in 2024 and land scarcity keeps facility capacity tight.^{[3]Ministry of Health, Labour and Welfare, “Annual Report on Long-Term Care Insurance 2024,” mhlw.go.jp} Home-based nurses fill the gap by supporting multigenerational households and delaying the need for institutional beds. Life expectancy climbed to 73.3 years in 2024, lengthening the frail-elderly phase that demands assistance with daily living. Together, these trends underpin durable expansion of the private nursing services market as families and payers favor aging in place.

Escalating Chronic Disease Burden Requiring Long-Term Care

Noncommunicable illnesses cause 74% of global deaths, and 828 million adults live with diabetes, 445 million of whom lack treatment. Six in ten U.S. adults have at least one chronic condition, and four in ten live with two or more. Private nursing teams provide medication management, wound care, and biometric checks that stave off repeated emergency visits. Medicare Advantage plans now cover up to 60 home-nursing visits per year, giving the segment a stable reimbursement lane. Similar benefit expansion is appearing in Canada, Germany, and Australia.

Cost Savings Versus Institutional Care for Payers

Hospital-at-home programs trimmed 30-day spending by 38% relative to standard inpatient episodes in 2024, while readmission fell 25%. Medicaid budgets in Oregon and Washington shifted funds from nursing homes to home- and community-based services, cutting per-member costs by up to 60%. Private employers mimic the model, underwriting two-week post-surgery nursing packages that hasten return to work. As a result, payers view the private nursing services market as a lever for bending the medical cost curve.

Telehealth and Remote Monitoring Enabling Higher-Acuity Home Care

The FDA cleared 87 remote-monitoring devices in 2024, broadening the clinical toolkit for nurses who supervise patients at home. CMS kept pandemic-era telehealth flexibilities through 2025, allowing virtual medication reconciliation and care-plan updates. Sensi.AI uses passive sensors to spot falls and non-adherence, alerting nurses before complications emerge. These advances lift the acuity ceiling, letting agencies treat heart-failure or COPD flare-ups that once required skilled-nursing-facility stays.

Global Shortage of Licensed Nurses and Aides

The World Health Organization warns of a 13 million-nurse shortfall by 2030, magnified by retiring baby boomers and lagging school capacity. The United States alone needs 193,100 new registered nurses each year through 2032, yet enrollment edged up only 3.1% in 2024. Japan projects a deficit of 270,000 long-term-care workers and now permits foreign caregivers, although language and credential obstacles slow deployment. Agencies hike hourly pay to USD 38 yet still trail hospital wages, forcing some to cap case volumes. Staff scarcity thus throttles the private nursing services market.

Public-Payor Reimbursement Pressure

Medicare’s Patient-Driven Groupings Model shaved 7.69% from base rates between 2020 and 2024, and only a 2.6% bump arrived for 2025. Medicaid freezes in states like California lock rates below inflation, compressing margins. The UK caps domiciliary-care tariffs at GBP 18.50 per hour, under the GBP 21 service cost, prompting exits from NHS contracts. Persistent tariff tightness forces consolidation and curbs service lines that lack supplemental private pay.

Segment Analysis

By Service Type: Higher-Acuity Offerings Outpace Traditional Home Health

Home healthcare providers generated 44.22% of revenue in 2025, illustrating their broad reach across nursing, therapy, and aide visits. The private nursing services market size for other specialized offerings is slated to expand at a 9.74% CAGR, the highest among service types, as infusion pumps and portable ventilators migrate into homes. Portable chemotherapy pumps with wireless monitoring let nurses administer complex regimens outside infusion centers. Nursing care facilities grow more slowly, pressured by consumer preference for aging in place. Retirement communities and group homes remain niche due to high capital requirements and limited insurance coverage. CMS hospital-at-home waivers, extended through 2025, enable hospitals to bill DRG rates and subcontract nursing at negotiated per-diems, deepening the revenue reservoir for specialized services.

Insurance parity policies reinforce this bifurcation. Group homes in Washington receive Medicaid rates 20% above individual care, attracting new builds but facing zoning pushback. In parallel, the private nursing services market share for routine home-health visits risks erosion as labor costs rise. Agencies respond by layering wound-vac dressing changes, antibiotic infusions, and ventilator weaning to command premium pricing. The strategy aligns with payer incentive to curb avoidable readmissions, sustaining revenue even as basic visit rates flatten.

Note: Segment shares of all individual segments available upon report purchase

By End User: Special Groups Gain Momentum

The elderly held 52.65% of 2025 revenue, anchored by age-linked conditions like osteoarthritis and dementia. However, special groups—disabled individuals and palliative patients—are set to grow 10.88% per year through 2031. Rising disability prevalence, at 1.3 billion globally, drives demand for cognitive and mobility support. Medicare hospice enrollment reached 1.72 million in 2024, with 98% of care delivered at home, underscoring the appeal of familiar surroundings.

Adults aged 18-64 represent a smaller slice of the private nursing services market but serve strategic hospital-at-home referrals for orthopedic surgery and bariatric care. Children remain the smallest cohort, yet Medicaid programs in Texas and Florida now cover up to 16 hours per day of pediatric skilled nursing, pushing premium reimbursement that bolsters agency margins. Across segments, subscription bundles that mix nursing with telehealth triage support caregivers who juggle work and family responsibilities.

By Medical Condition: Post-Operative Episodes Accelerate

Chronic disease management captured 39.14% of 2025 revenue, fueled by diabetes, hypertension, and heart failure. The private nursing services market size for post-operative care is projected to advance at a 9.55% CAGR, the fastest among conditions, as enhanced-recovery protocols discharge patients earlier. A 2024 JAMA Surgery study reported 3.2% 30-day readmissions for home-managed hip replacements versus 5.8% under inpatient care, validating the model. Geriatric-dementia programs scale as cognitive impairment rises to 78 million cases by 2030. Pediatric skilled nursing commands high rates due to ventilator dependence and gastrostomy care.

Medicare Advantage contracts often tie shared-savings bonuses to readmission reduction. Agencies install remote-monitoring kits that flag vital-sign drift, allowing early nurse intervention. By integrating telehealth and in-person care, providers stretch workforce capacity without sacrificing outcomes, an approach that strengthens the private nursing services market share of chronic-care bundles.

Note: Segment shares of all individual segments available upon report purchase

By Payment Model: Subscriptions Offer Predictability

Insurance covered 55.23% of revenue in 2025, spanning Medicare, Medicaid, and commercial plans. Subscription packages, priced on a per-member-per-month basis, are on track for a 10.54% CAGR. Aetna and Cigna launched riders at USD 40–60 per month for up to 40 nursing hours annually, targeting high-deductible enrollees. Direct-to-consumer platforms sell USD 200–500 tiers that blend nursing, aide support, and 24/7 phone triage.

Fee-for-service and out-of-pocket spending persists in markets with limited insurance, such as Mexico and India, where families pay cash to bypass long waitlists. Employer-funded bundles are widening in scope, covering quarterly nurse visits for chronic-condition workers to blunt medical trend. As capitated models spread, providers assume utilization risk yet gain revenue predictability.

Geography Analysis

North America generated 36.33% of 2025 revenue. CMS raised the home-health base rate 2.6% for 2025, a modest offset against 12% labor-cost growth since 2020. Canada expanded provincial budgets, while nursing shortages still limit visit volume in rural zones. Mexico’s private insurance penetration hit 8.2% in 2024, creating a fledgling affluent segment.

Asia-Pacific grows at 8.35% through 2031, propelled by Japan’s super-aged demographic and 13,400 visiting-nurse stations. China’s 2024 guidelines allow foreign joint ventures to own 70% of nursing agencies, though reimbursement remains urban-skewed. India’s market is metro-centric, hampered by sub-2% insurance coverage. Australia redirected AUD 4.9 billion to in-home packages in 2024, supporting 275,000 seniors.

Europe exhibits mixed dynamics. Germany, France, and the UK reimburse domiciliary nursing but cap tariffs, pushing providers to private-pay niches. Spain and Italy expand budgets yet delay payments. Brazil leads South America on the back of 25% private-health coverage, but currency swings blur ROI. Gulf Cooperation Council states license private agencies under Vision 2030, while workforce pipelines rely on expatriate nurses. South Africa’s urban private market serves only 17% of citizens due to limited medical-scheme enrollment.