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The Global Retirement Home Services Market size is estimated to grow by USD 5,556.39 million at a CAGR of 3.34% between 2022 and 2027. The growth of the market depends on several factors, including rising life expectancy, the aging baby boomer population, and benefits offered by retirement homes.
Retirement home services refer to a comprehensive range of personal, medical, and social services directed at meeting the social, physical, and emotional needs of retired people. Based on services, the global retirement home services market is segmented into independent living, nursing, and assisted living.
This market research report extensively covers market segmentation by service (independent living, nursing, and assisted living), 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.
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Our researchers analyzed the data with 2022 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.
Rising life expectancy globally is the key factor driving the global retirement home services 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.
Technological advances will fuel the global retirement home services 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.
The poor reputation of retirement homes is a major challenge to the global retirement home services 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.
The market research 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 growth strategies.
Global Retirement Home Services Market Customer Landscape
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.
Americanretirementhomes - 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 retirement home services market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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. Some of the prominent vendors that offer independent living services are Brookdale Senior Living, Erickson Living Management, and Five Star Senior Living. 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 11,834.93 million in 2017 and continued to grow by 2021. 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.
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North America is projected to contribute 40% by 2027. 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.
Technavio categorizes the global retirement home services market as a part of the global specialized consumer services market within the globally diversified consumer services market. The parent global specialized consumer services market covers revenue generated by the consumer service providers, including residential services, home security services, legal services, personal services, renovation, and interior design services, consumer auction services, wedding services, and funeral services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The retirement home services 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. The market has been segmented by type, product, distribution channel, and region.
Retirement Home Services Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.34% |
Market growth 2023-2027 |
USD 5,556.39 million |
Market structure |
Fragmented |
YoY growth (%) |
2.38 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Canada, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
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 Corp., Sunrise Senior Living LLC, and Wickshire Senior Living |
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 |
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. |
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