The U.S. home healthcare market has witnessed significant growth in recent years owing to the increasing geriatric population suffering from chronic and acute medical conditions requiring frequent monitoring and treatment. Home healthcare provides medical care and treatment to patients at their home which involves skilled professionals like nurses, therapists, and home health aides. Home healthcare offers several advantages over hospitalization like reduced medical costs, more comfort of home environment, personalized care, and greater flexibility. The services provided include wound care, physical & occupational therapy, skilled nursing care, palliative care, personal care assistance, and others. Home healthcare helps patients avoid expensive hospital stays and receive treatment for non-life threatening illnesses in the comfort of their own home.
The U.S. Home Healthcare Market is estimated to be valued at US$ 23.53 Bn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Telehealth is emerging as a key trend in the U.S. home healthcare market. Telehealth utilizes digital technologies like video conference, smartphones and web-based platforms to connect patients with medical professionals at remote locations. It helps to monitor vital signs, manage chronic conditions and provide other health services without physical visits. Telehealth has gained immense popularity during the Covid-19 pandemic as it allows healthcare providers to continue services while maintaining social distancing. The ease of use and convenience offered by telehealth is driving its adoption among patients as well as providers and helping to increase access to quality care. This trend will continue to grow and transform the home healthcare landscape in the coming years.
Threat of new entrants: The threat is moderate as the home healthcare market requires significant capital investment and regulatory compliances for new players to enter the market.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of various service providers and customized plans for patients to choose from.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many service providers for nursing care, therapy services, and personal care.
Threat of new substitutes: The threat is low as there are limited substitutes for home-based healthcare services.
Competitive rivalry: The competition is high among existing players to gain more market share.
The U.S. Home Healthcare Market size is expected to witness high growth. The market size for 2024 is estimated to reach US$ 23.53 Bn, indicating a CAGR of 15% during the forecast period of 2023 to 2030.
Regional analysis: The Western and Southern regions of the U.S. dominate the home healthcare market due to higher healthcare expenditures and prevalence of chronic diseases. The growing geriatric population also contributes to the market growth in these regions.
Key players: Key players operating in the U.S. Home Healthcare Market are Aetna, AmeriHealth, Lynn Community Health Center, CHAS Health, Cigna, Siemens Healthcare GmbH, NextGen Healthcare, Athena Healthcare, NextStep Solutions, and Genpact Limited. These leading players are focusing on partnerships, acquisitions, and new service launches to expand their market share.