Market Drivers of Home Healthcare Market

Published: March 2024


Home healthcare is a form of supportive care offered to patients in the home to help them recover from illness, injury and manage chronic conditions such as diabetes. In the past few years, there has been a sudden increase in the number of patients suffering from chronic diseases that require consistent monitoring. The home-based health services benefit patients by helping them regain independence while managing their disease conditions at home by using remote care devices. With advances in technology, it becomes possible to provide virtual care through tech-driven remote devices. For instance, telemonitoring devices enable the capture of vital disease signs at an early stage in real-time, allowing patients to get medical assistance on time and prevent emergencies. Home healthcare devices such as insulin delivery devices, intravenous pumps, blood pressure monitors, and home dialysis equipment provide patients with a sense of comfort and flexibility.

Furthermore, home healthcare services have significantly reduced the rate of frequent hospitalization and minimized the burden on the healthcare industry to deliver care in special settings. Home healthcare services are beneficial for patients, specifically bedridden, older patients, and those suffering from other kinds of physical disabilities. Pharmaceutical companies are exploring untapped opportunities in the home healthcare sector and leveraging advanced technology to bring innovative solutions that improve patient compliance and allow doctors to manage patient conditions remotely.

Current Home Healthcare Market Landscape: An Overview

Presently, the home healthcare market has witnessed notable growth due to various factors, such as the increasing geriatric population and rising cases of chronic diseases. The preference for home healthcare services has been fueled by the efficiency, comfort, and familiarity offered by home healthcare services. Currently, the home healthcare market is recognizing the emergence of several key players, including Abbott, AccentCare, LifePoint Health, Omron, and Trinity Health. These market players are emphasizing technological advancements that play a significant role in reshaping home healthcare services. The integration of advanced technology helps to enhance patient outcomes and reduces the burden on the traditional healthcare system to provide care.

Top Home Healthcare Market Drivers

The growing prevalence of the geriatric population across the globe is contributing to the growth of the market. As people begin to age, they encounter several health issues, such as cardiovascular disorders, hypertension, osteoporosis, and other age-associated disorders. Older patients require regular monitoring by healthcare experts to manage diseases and live a quality life. However, visiting the hospital regularly may not be possible for aged patients, specifically during an emergency. This necessitates the requirement of home-based virtual healthcare solutions that help provide care to patients in their homes. Hence, the aging population has become a primitive growth factor that drives the market. Other major home healthcare market drivers that help to drive the market include:

  • Increase in Chronic Diseases

The rising prevalence of chronic diseases across the globe has become one of major growth drivers that will drive the market in the upcoming years. Patients suffering from chronic illnesses often require frequent care and monitoring to manage their disease conditions. Home-based healthcare services using advanced technology offer a patient-centric approach, enabling patients to manage their disease conditions in remote areas. Presently, key industrial players are facilitating their research activities to provide advanced homecare solutions that help to meet patient requirements and reduce the burden on healthcare facilities to monitor patients.

  • Advances in Homecare Technology

Advances in home healthcare technology, such as the integration of artificial intelligence and smart virtual devices, have revolutionized the remote care services sector. The most familiar innovation scenario is the development of in-home healthcare devices that enhance accessibility and allow real-time data collection. Additionally, key industrialists will emphasize the addition of remote care devices that serve as a bridge linkage between healthcare professionals and patients.

  • Increasing Demand for Patient-Centric Care Models

In recent years, a gradual shift towards a patient-centric healthcare model has reinforced the expansion of the home healthcare market. Patients suffering from chronic disorders prefer personalized approaches and disease management models that cater to their requirements in remote areas. Considering the rising demand, home healthcare market players focus on offering patient-centric models that align with patient preferences, significantly contributing to enhancing patient outcomes and compliance. As the demand for patient-centric care models increases, it is anticipated that the market will expand in the coming few years.

  • Growing Preferences for Value-Based Care Model

The rising cost of healthcare services across the globe also drives the home healthcare market. Patients having chronic disorders may require frequent hospitalization, which enhances their treatment cost, creating a financial burden. Owing to the increasing cost of healthcare services, the push towards a value-based healthcare model is propelling the adoption of home healthcare services on a large scale. The delivery of healthcare at home is more cost-effective and more efficient than conventional hospital-based healthcare services. Moreover, the value-based healthcare approach improves patient outcomes by offering quality care. With the integration of homecare facilities, patients will align with their treatment plan in a better way. Therefore, the economic efficiency of home healthcare services serves as a compelling market driver that drives growth in the future.

Challenges Associated with Home Healthcare

Home patient care has become an indispensable part of health. Apart from the factors that are propelling the home healthcare market, some factors are restricting its growth.

  • Lack of Insurance Coverage and Reimbursement Options

Health insurance is beneficial for patients as it helps to reduce the financial burden of getting the treatment. However, in several regions, health insurance does not cover home healthcare services. The conventional health insurance models lack a comprehensive reimbursement structure and the cost associated with remote care facilities. Extending healthcare insurance to cover remote care services is essential for the patients. Therefore, the responsibility is on insurance players and remote healthcare providers to adopt an advanced insurance model to make it more cost-effective.

  • Unclear Regulatory Guidelines

Home healthcare devices are subject to complex regulatory compliance. Navigating these complex regulatory guidelines to get approval for the devices can be difficult for the market players who are aiming to offer efficient and compliant services. Frequent changes in regulatory guidelines, varying regulatory state laws, and the requirement for rigorous documentation further create hurdles to the growth of the home healthcare market.

  • Economic Barriers

Patients who require home healthcare services may face challenges in affording these services due to economic restraints. Since health insurance does not cover necessary homecare services, patients may be restricted from choosing the vital care services at home. Further, the high cost of remote care devices creates a financial strain on the patients; ultimately, it impacts the demand for healthcare services.

  • Integration with Healthcare Systems

Home healthcare devices require seamless integration with existing healthcare systems and a secure data transfer network. However, the integration poses several challenges, such as data sharing concerns, interoperability issues, and coordination with existing healthcare providers. Restraining programs must foster collaboration to overcome the integration challenges and understand the regulatory environment to have seamless compliance of home healthcare services with the traditional healthcare system.

Rising Opportunities in the Home Healthcare Market

Though the home healthcare market encounters market restraints that hinder its progress, several opportunities across the remote healthcare spectrum propel the growth in the market. In this context, several stakeholders across the home healthcare market are exploring innovative care models and leveraging advanced technologies to provide patient-centric solutions to manage disease conditions at home. Further, the key players underwent collaboration and partnership agreements to create synergies that improved the overall home healthcare market ecosystem. Examples of the key opportunities in the home healthcare market are listed below.

  • Remote Patient Monitoring: A Proactive Approach to Home Healthcare

Remote patient monitoring emerged as a sought-after alternative in the healthcare sector to manage disease conditions remotely. Advances in the technologies and integration of software programs enable healthcare professionals to monitor patients virtually from anywhere across the globe. The real-time monitoring of physiological parameters, vital signs of diseases, and specific health metrics through smart wearable devices, implants, and software enables healthcare experts to tailor treatment plans for patients.

Furthermore, remote patient monitoring enhances patient outcomes and contributes to the efficiency of the healthcare system by reducing the requirement for frequent hospital visits. It is worth noting here that close to 90% of healthcare organizations intend to make considerable investments in remote patient monitoring devices. Owing to its significance, market players raise their research and development efforts to develop novel remote patient monitoring devices to enhance patient compliance.

  • Wearable Technologies: A Gateway to Personalized Care

Smart wearable technologies are a new frontier of the home healthcare market, enabling healthcare experts to provide personalized care based on the data collected from these devices. The growing prevalence of chronic diseases worldwide shifted industrial leaders towards the adoption of smart, proactive technologies that ensure early detection of disease and adverse health conditions. These wearable devices come with in-built biosensors, audio / video feedback mechanisms, and posse's data transmission capabilities via the Internet of Things.

Such wearable devices have been designed to facilitate prevention care and empower patients to manage their conditions actively. Examples of such innovative wearable technologies include smart watches that help track sleep cycles, heart rates, oxygen, and other health parameters. As the demand for these devices increases to provide remote care, it is anticipated that the home healthcare market will witness significant growth during the forecast period.

  • Telehealth Services: Offer Access and Convenience

Telehealth services emerge as a game-changing technology in the home healthcare market landscape, allowing healthcare providers and patients to stay connected virtually. According to the recently updated telehealth services market report by Roots Analysis, in 2020, it was anticipated that 76% of the hospitals in the United States would leverage a diverse range of telehealth technologies to foster a robust connection between doctors and patients. Telehealth services emerge as a potential opportunity for the home healthcare market players to develop a wide array of virtual care services, including virtual check-ins, remote consultations, and digital health platforms to enhance accessibility and patient compliance.

  • Virtual Caregiver Support Solutions: Reducing Burden of Home-Based Care

The home healthcare market is continually evolving to cater to new opportunities for the development of virtual caregiver support systems. In this context, several market players have undergone mergers and raised funding to develop technology-driven virtual care platforms featuring caregiver tools for appointment tracking, disease management, prescription management, and communication. Additionally, industrial leaders also emphasize integrating virtual support networks and educational resources that can empower caregivers to deliver disease management guidance in remote areas and offer emotional support to the patient. Virtual caregiver support is going to act as a bridge between the healthcare system and the patient, ensuring a sustainable approach to home-based patient care.

Major Market Players in the Home Healthcare Market

Home healthcare consists of several leading players engaged in the development of advanced technology to facilitate remote care. Some major market players enter into acquisitions and mergers with other industrial leaders to launch innovative solutions to deliver healthcare services at home. Examples of top market players currently dominating the market are listed below:

  • Abbott
  • AccentCare
  • Amedisys
  • BAYDA Home Health Care
  • Demant 
  • Garmin 
  • LifePoint Health
  • Masimo
  • Omron
  • Portea Medical
  • Sonova Holding AG
  • The Pennant Group
  • Trinity Health

Home Healthcare Market: Bright Future Ahead

At the core, the market's future looks promising as several factors come together to raise the demand for remote healthcare facilities in the upcoming years. Stakeholders will continue to invest in the market for technological innovations that help to develop sophisticated telehealth services and remote patient monitoring devices. In the future, industrial leaders will steadily focus on the integration of telehealth and opportunities to develop advanced home healthcare models, representing a pathway for continuous growth. Additionally, the home healthcare market also witnesses strategic collaborations to foster innovation, ensuring the development of high-quality accessible patient care devices for the patients.

About Roots Analysis

Roots Analysis is a global leader in the pharma / biotech market research. Having worked with over 750 clients worldwide, including Fortune 500 companies, start-ups, academia, venture capitalists, and strategic investors for more than a decade, we offer a highly analytical / data-driven perspective to a network of over 450,000 senior industry stakeholders looking for credible market insights. All reports provided by us are structured in a way that enables the reader to develop a thorough perspective on the given subject. Apart from writing reports on identified areas, we provide bespoke research / consulting services dedicated to serving our clients in the best possible way.

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