Market Trends of Speech Therapy Services Industry
This section covers the major market trends shaping the Speech Therapy Services Market according to our research experts:
Geriatric Segment is Expected to Hold a Significant Market Share During the Forecast Period
The geriatric population generally refers to older people who are 65 years or above. The growing R&D for neurogenerative disorders such as Alzheimer's and increasing investments by governments are expected to fuel the segment's growth over the forecast period. With the increasing global population and average lifespan, the prevalence of neurological disorders is on the rise worldwide.
Various research studies provide insight into the effects of Alzheimer's on speech. For instance, in January 2022, a research study published by PubMed Central stated that Alzheimer's disease (AD) is characterized by a progressive worsening of deficits in several cognitive fields, including language. Speech gets crowded with wrong and meaningless words, along with increased pauses. In the very severe stages of AD, speech is often restricted to echolalia and verbal stereotypes. Therefore, the increasing prevalence of AD in the geriatric population may boost the demand for speech therapy in the future.
According to the data published by the UN in 2022, by 2050, the number of people aged 65 years or over worldwide is projected to be more than twice the number of children under 5 years and about the same as that of children under the age of 12. Thus, the increasing geriatric population worldwide is expected to boost the segment's growth.
According to the March 2021 report of the Alzheimer's Association, approximately 6.2 million people aged 65 years and above in the United States are living with Alzheimer's-related dementia. This number is projected to increase to 13.8 people by 2060. As per the same source, in 2021, the country incurred about USD 355 billion in Alzheimer's and other dementia costs. By 2050, this amount is projected rise to more than USD 1.1 trillion. The percentage of people with Alzheimer's dementia increases with age. About 3% of people aged 65-74, 17% aged 75-84, and 32% aged 85 and older have Alzheimer's dementia. Thus, the increasing prevalence of Alzheimer's disease in the geriatric population is expected to fuel the growth of the segment.
In addition, the government is spending huge amounts to support the R&D of neurodegenerative diseases. For example, the National Institutes of Health (NIH) has funded many research processes in the concerned market. The NIH provides funding of USD 2,869 million for Alzheimer's disease, including Alzheimer's Disease-related Dementias Diseases. The NIH also increased its funding amount from USD 1,571 million in 2010 to USD 4,021 million in 2021 due to the increasing incidence and mortality rate associated with these diseases. The NIH estimated this number to reach USD 4,266 million by 2022, which may further lead to the healthy growth of the market over the forecast period.
Hence, the increasing geriatric population and the rising prevalence and burden of geriatric diseases like Alzheimer's are expected to enhance the segment's growth.
North America is Expected to Hold a Significant Share in the Market During the Forecast Period
North America is expected to hold a significant share of the market over the forecast period. Factors such as the rising geriatric population, increasing Alzheimer's disease and reimbursement policies, and increasing screening tests for babies are expected to boost the market share. For instance, according to the data published by Statistics Canada in July 2022, around 7,330,605 people are aged 65 years or older in Canada, accounting for 18.8% of the total population.
Similarly, according to the 2022 updates from the Alzheimer's Association, the number of New Mexico residents aged 65 and older living with Alzheimer's is 43,000, which is expected to reach 53,000 by 2025. Alzheimer's disease typically destroys neurons and their connections in parts of the brain that maintain proper brain functioning, including cognitive abilities such as speech. Hence, the increasing prevalence of Alzheimer's disease in the region is likely to increase the market's growth. The positive reimbursement situation in the region and early detection programs are expected to boost the market's growth in North America.
The CDC's Early Hearing Detection and Intervention (EHDI) program works with the states to ensure that all babies are screened for hearing loss and receive any required follow-up tests and services. Increasing reimbursement and screening programs for speech disabilities are likely to boost the market's growth in the region.
The key developments by market players are also expected to enhance the market's growth in the region. For instance, in May 2021, Expressable, a US-based digital speech therapy company, raised a new USD 4.5 million seed round. This early-stage start-up company is focusing on serving approximately five million children in the United States with a communication disorder.
Therefore, owing to the rising geriatric population, the increasing prevalence of speech disorders, and the key developments by market players, the market is expected to grow in North America during the forecast period.
