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Modern Aged Care Management And Services Market | Covid-19 Impact Analysis
The new age seniors expect higher quality food and overall quality of care. They know that they have a choice when it comes to finding suitable care, so they can afford to have high standards. Majority of them have insurance coverage and other benefits. These changes bring pros and cons to aged care facilities and as we talk about convergence in the market, product manufacturers and healthcare service providers must be prepared to face tougher competition and may also be expected to deliver a high standard of care.
So who all could benefit from this market? Pharmacies, Online Retailers, Electronic/Wearable manufacturers, and Home Care companies are few of the prominent segments in the modern aged care market which are making big money in 2019. Among the markets globally, the USA, Canada, Germany, the UK, Part of Western Europe till the Netherlands, Australia, New Zealand, Japan and to an extent Singapore have already adopted new technologies to care and support the 60 plus population.
The global modern aged care management market is expected to grow at 11.45% CAGR till 2025. Australia and New Zealand will lead the market with the highest growth rate of 14.13% CAGR till 2025, followed by APAC, Western Europe and North America.
Modern Aged Care Management was a $35 billion+ industry in Australia in 2018, employing over 224,000 staff across more than 1,800 businesses who care for over 270,000 elderly and disabled Australians across the country. Among APAC countries, China is the most attractive market, its aged-care market, which according to government figures, is worth AUD 787b (USD 581 bn) and could grow to AUD 2.5 tn (USD 1.8 tn) by 2030. In Western Europe, older consumers are set to become an increasingly important demographic. They have already become a popular target for marketing strategies: there are special over-50s fairs and exhibitions, dating websites, and even a special broadcasting station. While in the USA, the aging USA population will create unprecedented demand for the senior living industry for decades to come and that opens the door for agents and brokers to grow their business in this sector. But understanding the changing landscape in the complex long-term care and the senior living market is critical and imperative for the new entrant in 2019.
Careangel, Cariloop, Echocare technologies, and MyndYou are some of the emerging companies in the modern aged care market which have unique propositions to offer to its senior buyers. Among the new players, insurance plays a vital role, Healthcare insurance plans for the seniors in Canada and Western Europe are covered by a single-payer publicly funded system. In APAC, the scenario is different. The report showcases the diversified opportunity for insurance companies and the pockets, where they can make money in 2019-2020. Among the technology players, such as 3L Labs Footlogger, 9Solutions IPCS products, Amiigo Fitness Band, and Basis B1 have introduced the next-generation wearables for seniors. This market is expected to grow at 16.52% CAGR till 2025.
Pharmaceuticals, supplements or drugs play a crucial role in the treatment of diseases and in maintaining wellbeing in the elderly population. This segment is expected to grow at a healthy CAGR of 11.4% during the forecast period (2019-2025).
The report also looks at the real estate market, which is equally attractive, over the years, there’s been a huge increase in the building of residential aged-care facilities and a big demand for in-home care as the aging population continues to grow. Asia Pacific region’s urban population is expected to exceed 400 mn by 2027, while the population aged 65 and above will rise by 146 mn within the next 10 years. For investors, these living sectors offer attractive yields and long-term growth prospects as well as an opportunity for portfolio diversification.
Among the untapped market, smart clothing is a new technology, which has been rarely tried on the senior population. Smart clothing is an electronically embedded cloth that helps to monitor the health of individuals. It also helps the people (mostly senior people), who are suffering from chronic disease, in health monitoring. Smart clothing is more convenient, comfortable, washable, durable, and reliable. This could open new doors for the apparel industry and investors, who are looking at new revenue streams. It is expected that the global market for smart clothing will grow at a CAGR of 6.32% in the Global Modern Aged Care Management and Services Market during the forecast period of 2019-2025.
Region wise South Korea, Japan, and Australia will lead the market. More than 40 percent of the region’s consumption growth is going to come from the 75-plus age group in these countries. The aging is happening at the higher end of the segment group. But in Western Europe (Germany, France, The Netherlands, and the UK) and the United States, the rapid growth is coming from 60 to 75-year-old, where baby boomers are shifting. The peak cohorts of baby boomers are shifting into that age group.
Older customers will drive growth in the developed markets (60 or older who are living in cities in Western Europe, the United States, and northeast Asia). But few companies truly understand this segment—and its nuances and that’s the reason there is so much of white space in this segment. The demographic could account for more than half of all growth in urban consumption in the developed markets in the next 15 years i.e. demand wave would come from 222 million population in between 2019-2032.
Several industries have been impacted by the evolution of technology, one of which is the elder care market. The global customized technology market for assisted living is estimated to top US$ 200 Billion by 2025. This fast-growing segment creates a massive revenue opportunity for the elder care market. Time to consider a new stream of revenue in 2019.
The future of the aged care sector faces a significant staffing challenge. Taking Australia as an example, the aged care workforce will require an additional 167% by the year 2050 to meet resident demand.
Modern aged care management and services market is different than the conventional aged care market that used to exist 5 years back. The next-gen residents are demanding, tech-savvy, and have the paying capacity; hence, their products and services need to be at par with what the rest of the world is using. The white space is a huge opportunity for the industry provided they plan a strategic market entry in 2019-2022.
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