Retirement Home Services Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Japan, Canada, Germany, France - Size and Forecast 2024-2028

Retirement Home Services Market Size 2024-2028

The retirement home services market size is forecast to increase by USD 4.37 billion at a CAGR of 2.6% between 2023 and 2028. 

• Market growth is influenced by several factors, including increasing life expectancy, the aging baby boomer population, and the advantages provided by retirement homes. Retirement home services encompass a wide array of personal, medical, and social support aimed at addressing the social, physical, and emotional requirements of retirees. The global market for retirement home services is categorized into independent living, nursing care, and senior living based on the types of services offered. Independent living enables retirees to maintain autonomy while accessing shared amenities, whereas nursing care provides specialized medical care. 
• Assisted living bridges the gap between independent living and long-term care by offering assistance with daily activities. These services cater to the diverse needs of retirees, reflecting a growing trend towards comprehensive and personalized care options in response to evolving demographics and increased life expectancy worldwide.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments. 

• Service
  • Independent living
  • Nursing
  • Assisted living
• Application
  • Elderly people
  • Disabled people
• Gender
  • Women
  • Men
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • France
  • APAC
    • Japan
  • South America
  • Middle East and Africa

By Service

The market share growth by the independent living segment will be significant during the forecast period. Independent living facilities in retirement homes offer a lifestyle choice in terms of age-appropriate living in combination with reduced routine housework for retired individuals. Individuals that opt for independent living in retirement homes are generally healthy and cover most of the maintenance costs by themselves. The independent living segment includes a range of housing arrangements, from apartment-style communities to housing cooperatives. In this segment, residents live in private residences and have access to common community areas. As independent living facilities are designed for senior citizens who wish to live independently, the amenities and features offered in individual dwelling areas are like those in a small home or apartment. 

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The independent living segment showed a gradual increase in market share from USD 12.14 billion in 2018. Independent living facilities are aimed at making the daily lives of residents easy and comfortable, thereby helping them live on their own. Laundry services, landscaping, housekeeping services, security surveillance, on-site dining facilities, and a range of activities and events are offered under this segment. Some government organizations provide financial support for independent living. For instance, the US Department of Housing and Urban Development provides subsidized housing for older adults through local housing authorities and local housing development and management agencies. This can also influence the market growth during the forecast period.

By Region

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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demographic outlook is promising in North America, and the region exhibits a high market potential that provides significant and recurring investment opportunities. Countries such as the US will require significant retirement housing facilities, along with other retirement care services, during the forecast period to meet the rising demand in the region, which is primarily attributed to the number of Baby Boomers reaching the age of retirement.

Market Dynamics

In the ever-evolving landscape of healthcare and housing solutions, the market occupies a significant role in catering to the unique needs of the aging demographic. This market encompasses a range of services, including Independent Living Services (ILS) and Residential Care Facilities (RCFS). ILS are designed for seniors seeking to maintain their independence while receiving necessary nursing services for ageing population, sickness, or mental handicap. Conversely, RCFS offer long-term care for those requiring more extensive assistance. The market also addresses the housing alternatives for children with legal guardians seeking appropriate care for their elderly parents. 

Insurance policies and Medicare coverage plans often play a crucial role in financing these services, with monthly fees varying based on the level of care required. Staff personnel in these facilities ensure the mental and emotional health of residents, mitigating issues such as elderly isolation and loneliness. Retirement communities are a popular housing alternative for the retired population, offering a sense of community and social engagement. The market continues to evolve, addressing the diverse needs of the aging population and ensuring their overall well-being. 

Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market  Driver

Rising life expectancy globally is the key factor driving the market growth. People are living longer globally than they were living a couple of decades back. This is a result of low mortality rates from cardiovascular and infectious diseases. Worldwide, three major health conditions, including ischemic heart disease, chronic obstructive pulmonary disease (COPD), and stroke, contributed to a majority of deaths. The average number of deaths has increased since the 1990s. The number of individuals that are dying from conditions such as heart disease has increased due to the increase in the global population.

The decline in age-specific mortality rates for these conditions is a sign of the progressing healthcare industry. Improvements in life expectancy are a result of advances in public healthcare facilities and significant developments in the healthcare industry, along with rising standards of living, improved nutrition, better education, and improvements in lifestyles. The global average age of an individual depends primarily on living conditions and the place of residence. Such factors will increase the market growth during the forecast period.

Key Market Trends

Technological advances will fuel the market growth. Technological advances in long-term healthcare are expected to drive the growth of the market during the forecast period. This is due to the growth in Internet penetration, which has led to the emergence of online platforms, mobile applications, and mHealth. The demand for assisted services, such as mobile applications, wearables and trackers, communication devices, and smart alarms is increasing. Using these devices, caregivers and nurses can track, record, and observe patients and communicate with doctors and healthcare professionals. Among these technologies, the adoption of patient data management using computers and mobile phones is increasing in long-term care.

mHealth and mobile-based healthcare applications that generate mobile health records (MHRs) and electronic health records (EHRs) are the major advances in technology. Other technologies, such as alarm integration techniques, are used to alert service providers and caregivers during health-related emergencies. The adoption of smart homes is increasing in developed countries as they reduce the level of dependence on caregivers. Thus, the increasing adoption of such technologically advanced solutions will drive the growth of the market during the forecast period.

Major Market Challenge

The poor reputation of retirement homes is a major challenge to global market growth. Though living in the comfort of one's own home is always desirable, taking up residence in old age homes has its share of advantages. However, only a few old age homes provide the minimum level of quality that is required for a comfortable stay. The service cost associated with old age homes depends largely on the quality of the services provided. As several residents cannot afford the high service charges, they enroll in retirement homes that lack basic infrastructure and services. Old-age homes seldom offer privacy to occupants. The environment in certain old age homes often results in depression, boredom, neglect, and even abuse in certain cases.

Though several investments have been made in the old age home industry and significant improvements have been witnessed in the quality of the services provided, the reputation of such old age homes will be tarnished. Senior citizens have a negative opinion of such old-age homes. Retirement homes are looked upon in the same light, but the kind of services and the positive environment provided have changed drastically.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Market Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

American Retirement Homes - The company offers retirement home services such as nutritious home-cooked meals, medication aid, social activity programs, and on-call help. Also, the company offers AmeriCare Plus, in-home personal care, and live-in agencies in the US.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• ABM Industries Inc.
• AlerisLife Inc.
• American Retirement Homes Inc.
• Ashiana Housing Ltd.
• British United Provident Association Ltd.
• Brookdale Senior Living Inc.
• Columbia Pacific Management
• Covai Property Centre (I) Pvt. Ltd.
• Enlivant Master Mgmt CO LLC
• Erickson Senior Living Management LLC
• Genesis Healthcare Inc.
• Home Instead Inc.
• Korian
• Life Care Companies LLC
• Senior Lifestyle
• Sienna Senior Living Inc.
• Sompo Holdings Inc.
• Sonida Senior Living Inc.
• Sunrise Senior Living LLC
• Wickshire Senior Living

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market caters to the unique needs of senior citizens and disabled people in their retirement years and beyond. This market includes various types of services such as Retirement Homes, Assisted Living Facilities, Nursing Homes, and Independent Living Services. The elderly population, a significant part of the geriatric demographic, often requires skilled medical assistance, transportation facilitation, meal delivery, housekeeping, companionship, and remote monitoring solutions. Senior-focused services like Memory Care Services, Skilled Nursing Services, and For-Profit Retirement Homes, as well as Non-Profit Retirement Homes, provide various levels of care to meet the diverse needs of this population.

The Ageing population's increasing life expectancy and the growing number of elderly individuals necessitate the expansion of these services. In-home caregiving is another essential aspect of the Retirement Home Services Market, offering personal care and nursing services for those who prefer to live independently. The market's growth is driven by the increasing demand for services that cater to the unique needs of the elderly and disabled population. 

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What are the Key Data Covered in this Market  Report?

• CAGR of the market report during the forecast period
• Detailed information of market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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