Home Health Market to Grow 8.9% Worldwide by 2020
The global home health market will expand rapidly in the next four years, according to newly released research that puts the industry’s compound annual growth rate (CAGR) even higher than previous estimates.
The market for health-related services, devices, and solutions will expand at a CAGR of 8.85% between 2016 and 2020, the report from Sandler Research forecasts. This is a larger growth rate than the 8.10% put forward in a recent Transparency Market Research report, which pegged the U.S. share to grow from $176.1 billion in 2013 to $303.6 billion by 2020.
In terms of market drivers, a key element is the increasing demand for more affordable care in the United States and other locations. The consumer price index inflation rate averaged 2.04% in the decade between 2005 and 2015, while health care inflation hit 3.62%, Sandler Research noted in a press release about the new research findings.
Technological innovation also is transforming the home health sector, the report states, with integration of mobile devices and home health care solutions a leading trend. For example, sensor technology now can monitor an individual’s vital signs and then wirelessly send that information to a mobile phone or tablet.
Complex pricing for home health care solutions is one potential drag on the market, according to the Sandler researchers. They drew on a combination of primary and secondary data to compile the report, including inputs from key industry participants.
Almost Family (NASDAQ: AFAM), Kindred Healthcare (NYSE: KND), and LHC Group (NASDAQ: LHCG) are among the prominent vendors identified in the report.
Written by Tim Mullaney