Key Drivers, Technology, and Trends in the Home Healthcare Market
Published On : Jul 28, 2014
The home healthcare market is gaining momentum, and several catalysts are driving this change. One of the key factors is a growing preference for home healthcare facilities over prolonged hospitalization. Home healthcare services are also known by other names such as home therapy services, formal care services, in-home care services, and skilled care services. The home healthcare industry comprises two major segments which are: home healthcare equipment and services. In-home medical care allows patients to receive treatment in the comfort and convenience of their home.
Market Key Drivers and Constraining Factors
Many elements influence the dynamics of the market. Certain factors boost the growth of the home healthcare market, while there are many factors which restrain the growth of the market.
Growing Incidences of Chronic Conditions
A primary factor which contributes to the growth of the market is the growing prevalence of fatal and chronic diseases. Globally, common chronic conditions such as cancer, diabetes, heart disease, and obesity can be observed. In certain cases, chronic conditions require hospitalization for prolonged periods. Patients prefer to receive treatment for conditions in the comfort of the home.
Due to the availability of advanced healthcare facilities all over the world, it is possible to live longer. This has led to increased elderly population worldwide. Aging population tends to suffer from many chronic medical disorders such as diabetes and cardiovascular conditions. This, in turn, fuels the growth of the home healthcare market.
The home therapy market faces many challenges. Providing the best of home healthcare facilities in a budget which competes with hospital healthcare facilities is a major challenge. The market also faces a challenge from the dynamic technological landscape. The adoption of technology in the home healthcare sector has not yet reached its potential. Hence, more advancement in the technology such as equipment, services, and other facilities is required to boost the growth of the market.
Home Healthcare Market Services and Equipment
The global in-home care market is projected by market analysts to reach its potential in the coming few years, in terms of market growth. This has resulted in the proliferation of professional organizations which specialize in home healthcare products and services.
Home healthcare services take up a major size in the home healthcare industry. It forms the largest segment in the industry, accounting for 83% of the total market share. Asia Pacific is anticipated to maintain its position as the fastest growing market for services of home healthcare. This can be attributed to the growing population in this zone and the increasing healthcare costs. Home healthcare industry provides rehabilitation services, respiratory therapy services, infusion therapy services, telehealth services, vital sign monitoring, and others.
Growing demand around the world for better home healthcare services and equipment is promoting many manufacturers to provide customized equipment to meet patients’ needs. For example, wheel chairs controlled by a joystick help physically disabled individuals to live an independent life. Self diagnostics/monitoring equipment is the largest sector under the home healthcare equipment market sector. The industry of home healthcare provides a broad spectrum of equipment such as BP monitors, diabetic care units, test strips, oxygen delivery systems, home respiratory therapy equipment, nebulizer kits and devices, CPAP equipment, ventilators, mobility assist devices, etc.
Global Home Healthcare Market Insights
Industry experts expect the global home healthcare devices and services market to reach a market value of USD 305.9 billion by the end of the year 2018. The industry will display growth at a CAGR of 7.7% during the forecast period of 2012 - 2017.
During this forecast period, maximum growth will be observed in America in relation to revenue. It will reach a total value of USD 150.8 billion by 2018, which is almost the half of the total estimated market value. Growth in America will be driven by factors such as increasing incidences of chronic conditions and increasing healthcare prices. Apart from the Americas, other major geographies in the market are Europe, Asia-Pacific, and Rest of the World.
Key Players in the Market
The major players in the home healthcare market are Roche Diagnostics, Abbott Laboratories, Johnson and Johnson, Bayer Healthcare, Becton Dickinson and Company, Medtronics, Eli Lilly and Company, Novo Nordisk, and Sanofi Aventis. Due to the increased competition, many other minor players are emerging in the market of home healthcare services and equipment.
Home healthcare is a proactive facility which helps to monitor the health of patients without the inconvenience of prolonged hospitalization. Today, it is preferred by many patients and healthcare professionals as the choice of treatment facility. Orientation of patients towards home healthcare facility has led to increased competition between major key players in the market. Companies compete with each other to provide the best modern facilities to patients at an effective cost.