Elder Care Services Market Size, Share, Growth, and Industry Analysis, By Type (Home-Based Care,Community-Based Care,Institutional Care), By Application (Community,Gerocomium), Regional Insights and Forecast to 2033

Elder Care Services Market Overview

The Elder Care Services Market size was valued at USD 447846.81 million in 2024 and is expected to reach USD 554404.37 million by 2033, growing at a CAGR of 2.4% from 2025 to 2033.

The Elder Care Services Market is expanding rapidly worldwide due to the increasing aging population. As of 2024, approximately 771 million people globally are aged 65 and older. This demographic is projected to reach nearly 1 billion by 2030. In countries like Japan, seniors represent over 29% of the population, while in Italy, they account for nearly 23%. In the United States, 58 million people are 65 or older. These growing numbers drive demand for comprehensive elder care services. The World Health Organization estimates that by 2050, one in six people globally will be over the age of 65. Moreover, chronic diseases like diabetes (537 million adults globally in 2023), cardiovascular issues (17.9 million annual deaths), and dementia (over 55 million patients worldwide) further fuel the need for elder care services.

Key Findings

Driver: Increasing global aging population and chronic disease prevalence.

Country/Region: Japan leads with the highest proportion of elderly citizens globally.

Segment: Institutional care remains dominant due to intensive medical support requirements.

Elder Care Services Market Trends

The global elder care services market is witnessing significant shifts driven by demographic transitions. In 2024, over 10% of the global population is aged 65 and above, translating to more than 770 million individuals. This figure is expected to escalate as fertility rates decline and life expectancy improves. The average life expectancy globally reached 73.4 years in 2023, an increase from 67.2 years two decades ago. Technology integration has become a notable trend in elder care services. For example, approximately 48% of elder care facilities in North America now incorporate remote patient monitoring devices. In 2023, more than 500,000 care robots were operational globally, with Japan accounting for 52% of the total deployed robots. Telemedicine has also gained popularity, with 39% of elderly patients in the United States utilizing telehealth consultations in 2023, compared to just 11% in 2019. The prevalence of chronic diseases is another critical factor. Currently, 10.5% of the global population aged 60 and above suffers from diabetes, while approximately 22% have cardiovascular diseases. Alzheimer's disease affects around 55 million people worldwide, with an estimated 10 million new cases added annually. The shortage of skilled caregivers continues to challenge the sector. In 2023, there were approximately 1.4 million unfilled caregiving positions across the United States and Europe combined. This labor shortage is prompting the development of training programs and incentives to attract younger workers into the sector. Cultural preferences for aging at home are influencing the rise of home-based care services. In 2023, 64% of elderly Americans preferred receiving care at home rather than in institutional facilities. Similarly, in the Asia-Pacific region, home-based elder care services saw a 23% increase in demand between 2020 and 2023. Mental health support for the elderly is emerging as a priority. Over 20% of adults aged 60 and above suffer from mental or neurological disorders. Consequently, elder care service providers are increasingly incorporating psychological support and counseling into their service offerings.

Elder Care Services Market Dynamics

DRIVER

Rising demand for pharmaceuticals.

As elderly populations grow globally, pharmaceutical demand is soaring due to the higher incidence of chronic and age-related diseases. Over 75% of adults aged 65 and above are managing at least two chronic conditions simultaneously, such as hypertension, diabetes, and arthritis. The pharmaceutical sector is responding with the development of age-specific formulations, including easily digestible pills and controlled-release medications. In 2023, over 60% of prescriptions filled in the United States were for individuals aged 65 and older. Similarly, Japan reported that elderly citizens consumed 70% of prescription drugs dispensed nationally. This ongoing demand directly influences the elder care services market, as care providers must coordinate medication management, adherence monitoring, and polypharmacy support.

RESTRAINT

Demand for refurbished equipment.

While demand for elder care equipment continues to rise, financial constraints push many facilities to purchase refurbished medical devices. In 2023, the global refurbished medical equipment market reached an estimated volume of over 1.2 million units. Approximately 38% of elder care facilities in developing regions use refurbished equipment to cut costs. While these devices can reduce operational expenses by up to 45%, they often come with maintenance challenges and shorter operational lifespans. Dependence on outdated or second-hand equipment raises concerns about service quality and safety standards, hindering optimal care delivery.

OPPORTUNITY

Growth in personalized medicines.

The advancement of genomics and precision medicine offers significant opportunities for elder care services. In 2023, over 25% of newly approved drugs by the U.S. FDA incorporated elements of personalized medicine. This approach enables tailored treatments based on genetic profiles, significantly improving efficacy and reducing side effects. For the elderly, who often face polypharmacy issues, personalized medicine reduces the risk of adverse drug interactions. Genetic screening adoption among elder care facilities rose by 18% between 2020 and 2023, reflecting growing interest in customized healthcare solutions. Personalized treatment plans can enhance patient outcomes, reduce hospitalizations, and improve the quality of life for elderly patients.

CHALLENGE

Rising costs and expenditures.

The rising costs associated with elder care services represent a substantial challenge. In 2023, the average annual cost of a private room in a U.S. nursing home exceeded $108,000, while assisted living facilities averaged $54,000 annually. Similar cost trends are observed globally, with Western Europe reporting increases of 8% to 12% in elder care expenses between 2020 and 2023. Staffing shortages contribute to higher labor costs, while the need for advanced medical equipment and facility upgrades also escalates expenditures. These increasing costs put financial pressure on both service providers and families, potentially limiting access to quality care for some demographics.

Elder Care Services Market Segmentation

The elder care services market is segmented by type and application. The type segmentation includes home-based care, community-based care, and institutional care. Application segmentation involves community and gerocomium care.

By Type

• Home-Based Care: Home-based care dominates due to growing demand for personalized and comfortable care settings. In 2023, 64% of elderly Americans expressed a preference for home care, while 72% of elders in the United Kingdom favored receiving care at home. In Asia-Pacific, home-based care services expanded by 23% between 2020 and 2023. Technological advancements such as telemedicine, remote patient monitoring, and smart home adaptations drive this segment's growth. For instance, 41% of home care patients in Japan utilize smart monitoring devices.
• Community-Based Care: Community-based elder care services are expanding to accommodate social interaction needs. In 2023, community care centers saw a 19% increase in utilization rates across Europe. In China, the government reported that 42,000 community elder care centers were operational as of 2023, marking a 17% increase compared to 2021. These centers offer social engagement, meal services, rehabilitation, and basic medical care, helping reduce hospital admissions by 16% annually.
• Institutional Care: Institutional care remains essential for seniors requiring intensive medical support. In 2023, approximately 1.4 million seniors in the United States resided in nursing homes. Germany reported 818,000 residents in long-term institutional care facilities. Institutional care provides skilled nursing, 24/7 monitoring, specialized dementia units, and rehabilitation services. The increasing prevalence of severe conditions like advanced dementia and complex post-operative recovery sustains demand for institutional elder care.

By Application

• Community: Community applications focus on outpatient care, day programs, and wellness services. In 2023, around 26 million elderly individuals worldwide engaged in community elder care programs. These programs emphasize preventive care, early intervention, and social engagement, reducing hospitalization risks by approximately 20%.
• Gerocomium: Gerocomium applications involve long-term residential care for severely dependent elderly patients. In 2023, an estimated 3.8 million individuals globally resided in gerocomium-type facilities. These institutions provide round-the-clock medical attention, palliative care, and comprehensive life support services, ensuring high-quality care for the most vulnerable elderly population.

Elder Care Services Market Regional Outlook

• North America

demonstrates robust demand for elder care services due to its aging population. The United States has over 58 million seniors aged 65 and older as of 2024, accounting for 17% of the total population. Canada reports that 19% of its population is over 65, representing approximately 7.3 million people. The region faces acute shortages of skilled caregivers, with the U.S. needing an estimated 1.2 million additional healthcare workers by 2030. Home-based care services saw a 28% increase in utilization between 2020 and 2023, fueled by growing adoption of telemedicine and remote monitoring technologies.

• Europe's

elder care services market is highly developed, supported by strong government policies. Germany, with approximately 18.5 million seniors over 65, leads the European market, followed by Italy and France. In 2023, 25% of EU citizens were aged 60 and above. Europe boasts over 100,000 elder care institutions, with advanced dementia care centers representing nearly 30% of these facilities. Public healthcare funding covers an estimated 70% of elder care costs across most Western European nations.

• Asia-Pacific

presents the fastest-growing elder care services demand. Japan's elderly population reached 36.4 million in 2023, accounting for 29% of its citizens. China follows with 241 million people over the age of 60. The region faces a growing dependency ratio, with only 3.5 working-age individuals supporting each senior in Japan. Government initiatives, such as China’s ""9073 policy,"" emphasize home-based and community elder care services, driving sector expansion. In 2023, Asia-Pacific added over 30,000 new elder care facilities.

• Middle East & Africa

region shows emerging demand for elder care services. In the UAE, 1.2 million individuals are aged 60 and above. South Africa reports 5.3 million seniors over 60 years old. Cultural shifts, increasing urbanization, and smaller family structures are driving demand for professional elder care services. In 2023, elder care facility openings in the region grew by 14%, with private sector investment supporting most developments.

List Of Elder Care Services Companies

• Benesse Style Care
• Econ Healthcare
• Epoch Elder Care
• St Luke's ElderCare
• Latin America Home Health Care
• Samvedna Senior Care
• ApnaCare Latin America
• Nichiigakkan
• Golden Years Hospital
• Orange Valley Healthcare
• NTUC Health Co-Operative
• GoldenCare
• Carewell-Service
• RIEI
• SNCF
• Cascade Healthcare
• Millennia Personal Care Services
• Rosewood Care
• Pacific Healthcare Nursing Home
• United Medicare

Benesse Style Care: Operates over 330 elder care facilities in Japan, serving approximately 15,000 seniors daily as of 2023.

Nichiigakkan: Manages over 500 facilities in Japan and Southeast Asia, providing care services to nearly 22,000 residents as of 2023.

Investment Analysis and Opportunities

The elder care services market continues to attract significant investment globally. In 2023, venture capital investments in elder care technology surpassed $2.1 billion globally, a 26% increase from the previous year. These funds support innovations like AI-powered care monitoring, robotic assistants, and digital health platforms. Startups focusing on smart home adaptations raised over $750 million, reflecting growing demand for aging-in-place solutions. Institutional investors are also increasing their portfolios in elder care real estate. In 2023, private equity acquisitions of nursing home chains and assisted living facilities exceeded 400 transactions globally. The real estate investment volume for elder care facilities crossed $20 billion worldwide. This capital influx drives infrastructure expansion, modernization, and the establishment of new specialized care centers. Governments worldwide are also contributing significant public funding to elder care development. For example, Germany allocated approximately €3.5 billion in 2023 for long-term care infrastructure, while Japan’s Ministry of Health earmarked ¥400 billion for elder care technology innovation. Public-private partnerships continue to emerge as an attractive investment model to meet growing demand. A surge in demand for dementia care services presents additional investment avenues. The number of dementia patients is expected to reach 78 million globally by 2030. In 2023, specialized dementia care centers received investments totaling $3.2 billion globally to enhance facilities, hire specialized staff, and incorporate cognitive therapies. Insurance companies are also developing elder-specific policies. As of 2023, 62% of life insurance companies in the United States offered long-term care insurance options, compared to 45% in 2018. This reflects growing consumer awareness and planning for aging-related health expenditures, providing opportunities for insurers to expand product offerings.

New Product Development

The elder care services market is witnessing rapid innovations aimed at improving care delivery and quality of life. In 2023, over 50 companies launched advanced wearable monitoring devices designed for elderly patients. These devices, equipped with AI-driven fall detection and vitals monitoring, are being used by approximately 15 million elderly individuals globally. Care robotics represents a significant area of development. Japan's Paro therapeutic robot, now in use in over 30 countries, helps reduce patient anxiety and depression in dementia patients. In 2023, global care robot shipments exceeded 500,000 units, with Asia-Pacific leading demand at 58% of total shipments. Telehealth platforms continue to expand their features. In 2023, telemedicine companies introduced AI-based diagnostic tools, used in approximately 39% of elderly telehealth consultations in North America. These platforms enable remote cardiac monitoring, medication adherence tracking, and virtual therapy sessions. Smart home integrations saw extensive innovation, with over 12 million smart home elder care devices installed globally by 2023. Features include voice-activated emergency alerts, smart pill dispensers, automated lighting, and security systems, reducing fall risks by 22% in monitored homes. In medication management, companies introduced personalized blister packaging and automated dispensing units tailored for polypharmacy patients. In 2023, more than 8,000 elder care facilities worldwide adopted these systems to improve medication adherence rates by up to 96%, significantly reducing hospitalization due to medication errors.

Five Recent Developments

• A new AI-driven system called PAUL was implemented at Park Senior Villas La Cañada in Arizona, tracking residents' movement patterns. During a four-month trial, falls decreased by 70%, and no major injuries were reported.
• In April 2025, a pilot launched in New York using 100 TV-based AI devices from ONSCREEN. The system, featuring “Joy”, offers conversational engagement, cognitive games, medication reminders, and automatic video calls. It targets the 37.1 million unpaid elder caregivers in the U.S.
• Travelers Insurance partnered with Wellthy to offer concierge elder‑care benefits, helping employees manage parent care during serious illness. One case involved arranging cross-state cancer treatments and flexible remote-work leave.
• A pilot study at a Riverdale, NY senior-living community tested Meela, an AI companion accessible by phone. Among 23 participants, weekly calls over 30 days led to notable reductions in depression and anxiety, and increased social engagement.
• Cera’s AI-powered monitoring software, now used in over 2 million monthly home-care visits by NHS-integrated care systems, achieved 97% accuracy in detecting health deterioration, helping to prevent hospitalisations.

Report Coverage of Elder Care Services Market

The report provides a comprehensive 360° analysis of the elder care services market, beginning with a detailed breakdown of market segments by service type. It includes over 26 data tables covering historical data from 2019 to 2024 and forward-looking estimates through 2029. These tables include breakdowns by home care, assisted living, institutional care, and adult day care, while separately tracking public vs. private service providers and facility counts by region. On the application side, the report covers condition-specific care categories—such as diabetes, Alzheimer’s/dementia, respiratory and heart disease, neurological disorders, cancer, and other specialized needs. Notably, it captures the rising number of Alzheimer’s patients in the U.S.: from 6.5 million in 2022 to approximately 6.9 million in 2024, and tracks enrollment in diabetes-focused elder care programs . Regionally, the analysis encompasses North America, Europe (Western and Eastern), Asia-Pacific, South America, the Middle East, and Africa. It drills down into national-level detail for key markets like the U.S., Canada, Germany, France, the U.K., Italy, China, Japan, India, Brazil, Russia, and South Korea. For instance, the report notes over 100,000 elder care institutions in Western Europe in 2023, with approximately 30% of these facilities dedicated to dementia care . The competitive landscape section profiles more than 30 companies, including major operators like Nichiigakkan (500+ facilities supporting ~22,000 residents), Benesse Style Care (330 facilities serving around 15,000 seniors daily), ECON Healthcare, Epoch Elder Care, Rosewood Care, St Luke’s ElderCare, NTUC Health, and United Medicare. Financial and investment analysis features over 400 institutional transactions in 2023, along with governmental funding examples—such as €3.5 billion in Germany and ¥400 billion in Japan earmarked for elder care infrastructure . The report includes M&A breakdowns, venture funding totals (e.g., US$ 2.1 billion raised in elder care tech in 2023), and ESG delivery models. Lastly, the document addresses regulatory frameworks, operating cost benchmarks, pricing models, and service quality measures like caregiver staffing ratios and facility accreditation metrics. It notably provides national-level data such as average costs per adult day care, staff-to-resident ratios, and elder demographic shifts, including projections of 800 million people aged 65+ by 2050, with 60% residing in Asia-Pacific .

Frequently Asked Questions