The global home healthcare market is expected to reach a compound annual growth rate of nearly 9% between 2017 and 2021, according to market research from Technavio (London). Driving this growth is an aging population requiring long-term medical care and an array of products designed to monitor and treat these conditions in the home. The rate of growth varies, however, depending on geography, with the Americas leading the pack and Asia-Pacific bringing up the rear.
Numerous conditions can be monitored and treated at home with minimal or no assistance from professionals, reducing patients' dependence on hospitals and minimizing the cost of healthcare in many countries, notes Technavio. Consequently, the purchase of medical products such as ventilators, nebulizers, oxygen delivery systems, dialysis equipment and inhalers will increase during the forecast period, driven largely by an aging population.
In the Americas, approximately 44 million to 48 million people were older than 65 in 2016, and that demographic is expected to reach more than 90 million by 2060, according to Technavio. The demand for home healthcare in the region is driven by easy accessibility of products and services, increased healthcare spending, obtainability of health insurance, and availability of favorable reimbursements.
“The vendors in the region have catered to growing demand by providing diverse applications of home healthcare products and services. Growing competition among [home healthcare product] vendors has resulted in product availability at competitive prices through multi-channel distribution networks, and resulted in the introduction of new products and services,” said Amber Chourasia, a lead research expert from Technavio for health and wellness.
Europe, the Middle East and Africa (EMEA) accounted for approximately 33% of the total share of the global home healthcare market in 2016. Developed countries such as the United Kingdom, Germany and France as well as developing countries in the Middle East and Africa have driven significant growth in the EMEA market, reports Technavio.
“There is a rise in the number of healthcare facilities in developed countries due to the prevalence of lifestyle diseases such as obesity. Additionally, healthcare services are adopted by people for diabetic care, degenerative joint diseases and sleep apnea that are caused by obesity. The growth of the market during the forecast period will be a result of the growing prevalence of obesity in the region,” said Chourasia.
The Asia-Pacific market had the smallest rate of growth in 2016 because of the lack of a structured distribution network and low awareness about home healthcare, according to Technavio researchers. This is attributed to a lack of skilled professionals and vendors’ inability to combine products and services into a single platform. Nevertheless, aggressive promotion by vendors and increasing awareness about home healthcare also will grow the market in this region during the forecast period.
Many vendors are shifting their operations to India and China to reduce the cost of manufacturing. The accessibility of products, services and solutions in the region has also improved due to this shift by vendors.
The report includes information regarding the opportunities and challenges in the home healthcare market and a list of key vendors within that sector. It can be purchased on the Technavio website.