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The retirement communities market size is estimated to grow at a CAGR of 5.93% between 2022 and 2027 and the size of the market is forecast to increase by USD 545.85 billion. The growth of the market depends on several factors, such as the rising life expectancy, the aging baby boomer population, and the benefits offered by retirement communities.
This report extensively covers market segmentation by type (assisted living facilities, continuing care retirement communities, and rest homes), application (elderly people and disabled people), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Retirement Communities Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The aging baby boomer population is the key factor driving the growth of the global retirement communities market. The aging of the baby boomer population is a major driver of the global retirement community market. Baby boomers are people born between 1946 and 1964 who make up a significant portion of the world's population. As this group ages, they are looking for retirement options that provide a comfortable and secure lifestyle. Senior communities offer a variety of housing options and services for seniors, including independent living, assisted living, and memory care. These communities often offer amenities such as fitness centers, social activities, and health services, making them attractive options for seniors seeking a comfortable and engaging lifestyle in retirement.
Also, the obesity rate among senior citizens is on the rise, which leads to a rise in the number of people who are at risk of disability and chronic diseases. In such cases, it becomes challenging for family members to take care of senior citizens. In this type of situation, retirement communities are the most suitable options for a comfortable and healthy residence as they offer assisted living options along with certified nursing care. Post-retirement, these people need medical care, which is one of the prominent features of retirement communities. Thus, there will be an increase in the demand for retirement home services in the forecasted period.
Multi-generational living is the primary trend shaping the global retirement communities market growth. In addition to the social benefits, multi-generational living can also provide economic benefits. By sharing living expenses and resources, families can save money on housing, utilities, and other expenses. This can be especially important for retirees on fixed incomes who may be facing rising healthcare costs and other financial challenges. Retirement communities that offer multi-generational living typically provide a range of housing options, from apartments and townhouses to single-family homes.
These communities may also offer amenities and services that appeal to both older and younger residents, such as parks, recreational facilities, and social activities. Overall, multi-generational living is a trend that is likely to continue as more retirees seek to maintain social connections and support networks while also managing their healthcare and financial needs in the forecast period.
Low savings of baby boomers is a major challenge impeding the growth of the global retirement communities market. One of the biggest challenges facing the global retirement community market segment is the low savings of baby boomers. However, many baby boomers do not have enough savings for retirement. There are several reasons why baby boomers are saving less. One reason is that many baby boomers don't make retirement savings a priority. They may have focused on other financial priorities, such as paying off debt or supporting their children`s education.
Additionally, some baby boomers may have experienced a job loss or other financial setbacks that have made it difficult for them to save. The low savings of baby boomers can have a significant impact on the global retirement communities market as many retirement communities require significant upfront fees or ongoing monthly payments, which can be challenging for individuals with limited savings. Additionally, some retirement communities may not be able to provide the level of care and amenities that baby boomers are looking for due to budget constraints, which will restrict the growth of the market in focus during the forecast period.
Vendors 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.
Affinity Living Communities: The company offers retirement communities such as Aurora Copperleaf community.
Also, the company focuses on the development of multi-family and age-restricted communities.
AlerisLife Inc.: The company offers retirement communities through its subsidiary Five Star Senior Living.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The assisted living facilities segment will account for a major share of the market's growth during the forecast period. The global market for assisted living facilities is expected to grow in the coming years due to the increasing number of seniors worldwide and the growing demand for long-term care options.
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The assisted living facilities segment was valued at USD 963.52 billion in 2017 and continued to grow until 2021. Assisted living facilities are a segment of the global retirement communities market that cater to seniors who require some assistance with activities of daily living (ADLs) but do not require round-the-clock medical care. These facilities provide a range of services such as meal preparation, housekeeping, medication management, and personal care assistance to help residents maintain their independence and quality of life. Assisted living facilities are typically designed to provide a home-like environment with private or semi-private living spaces and communal areas for socializing and activities. Many facilities also offer amenities such as fitness centers, libraries, beauty salons, and transportation services to help residents stay active and engaged.
Based on application, the market has been segmented into elderly people and disabled people. The elderly people segment will account for the largest share of this segment. The senior segment of the global senior community market is primarily focused on providing housing and care services to seniors. Retiree communities offer a variety of facilities and services, including independent living, assisted living, nursing care, and memory care. These communities provide a safe environment for older adults who need assistance with daily activities, medical care, or social interactions. For instance, in December 2021, a report was published that stated that around 5% of Australians, 6% of Americans, and 1% of UK citizens over 65 years of age live in a retirement village, which clearly states that majorly of the elderly population is directly dependent on retirement communities, which in fact will help to drive the growth of the market in focus in the forecast period.
North America is estimated to contribute 39% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Though the market potential is high in North America, the growth rate of the retirement communities market in the region will be hindered by affordability issues as many retirees do not have enough retirement funds. For instance, most of the revenue for the nursing care service segment comes from public sources, such as the government in the US, as the monthly expenses for nursing care are high, which will solve the problem of affordability issues as many retirees do not have enough retirement fund, which in turn will drive the growth of the market during the forecast period.
The COVID-19 pandemic had a significant impact on the North American retirement communities market in 2020. However, in 2021, the initiation of large-scale vaccination drives?has lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Such factors are expected to drive the market during the forecast period. One of the most significant impacts of COVID-19 on retirement communities has been the increased demand for healthcare services. As senior citizens are more vulnerable to the virus, retirement communities had to provide additional healthcare services to their residents. This has led to an increased demand for healthcare professionals, including nurses and doctors, as well as increased costs for personal protective equipment (PPE).
The retirement communities market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Retirement Communities Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.93% |
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Market growth 2023-2027 |
USD 545.85 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.23 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 39% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Affinity Living Communities, AlerisLife Inc., American Retirement Homes Inc., Brookdale Senior Living Inc., British United Provident Association Ltd., Enlivant Master Mgmt CO LLC, Erickson Senior Living Management LLC, Front Porch, Genesis Healthcare Inc., HC One Ltd., Honor Technology Inc., Interim HealthCare Inc., Korian, Life Care Companies LLC, Senior Lifestyle, Sienna Senior Living Inc., Sonida Senior Living Inc., Sunrise Senior Living LLC, Village Concepts, and Wickshire Senior Living |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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