A number of factors offer favorable tailwinds for the home health care industry’s future growth prospects, but it’s the software market segment within the sector that stands to see the most rapid growth in the coming years, a recent study suggests.
The global aging population is a key factor for driving widespread growth for home health services, especially as home health offers a more cost-effective alternative than institutional-based care settings such as hospitals and nursing homes.
With pressures to reduce health care costs while simultaneously improving quality of care at the forefront of national health policy, the advancement of technology and the growing adoption of home health care-based solutions stands to reap the benefits of larger market trends, according to a new report from Future Market Insights (FMI).
The report, titled “Home Healthcare Software Market: Global Industry Analysis and Opportunity Assessment 2015-2025,” notes that with rapid acceptance of technology and taking into account the various trends spurred by the global aging population, the home health care software market is expected to grow at a rate of around 13-15% in the forecast years of 2015-2025.
By 2025, the report notes that the home health care software market will reach four times its current size.
“There was an immense demand for home healthcare software in the recent past and as per our estimated, it will witness further growth in the forecast years as well,” states FMI in the report. “The emphasis of using such kind of systems by different healthcare agencies has prompted companies to focus more on the existing technologies and services.”
The market for home health software is segmented into various systems across hospice, home health agency, telehealth and clinical management. And based on the mode of delivery, the global software market is segmented into software that is either cloud-based, on-premesis or web-based.
FMI indicates that the cloud-based software segment is currently growing at a faster rate due to its advantage of data storage and accessibility, while telehealth systems are the fastest-growing product segment among other commercially available home health care software products.
“These solutions are cost-effective, ease of use and provides error-free medical information,” states FMI. “With this cutting edge technology and remarkable investments from the stakeholders, this market is expected to create better business opportunities in the coming years.”
Geographically, North America dominates the global home health care software market, followed by Western Europe, according to the report.
“Factors such as existence of highly developed healthcare infrastructure, rapid adoption of advanced technologies and higher rate of implementation of innovative technology in the practice are driving the North America home health care software market towards growth,” says FMI.
Other regions, such as Asia-Pacific, are lucrative markets for such software due to the availability of skilled manpower, innovations and highly developed information technology sectors in emerging countries, mainly China and India, which accounts for the second-largest population pool in the world.
Recent studies have projected similar enormous, exponential growth for the global home health care sector overall.
By 2020, the global home health market is expected to reach $355.3 billion, growing at an estimated compound annual growth rate of 7.8% during from 2014 to 2020, according to a September 2014 report from San Francisco-based Grand View Research, Inc.
This growth, the report suggests, will largely be driven by the home health care sector’s rapid adoption as a cost-effective alternative to healthcare establishment-based therapy, as well as a growing geriatric population globally and their increased need for long-term care as they age.
Written by Jason Oliva