Healthcare Services Market Size, Share & Trends, 2033

Healthcare Services Market Overview

The Healthcare Services Market size was valued at USD 109828.75 million in 2024 and is expected to reach USD 136851.26 million by 2033, growing at a CAGR of 2.5% from 2025 to 2033.

The global healthcare services market reached approximately 13.31 trillion in 2024, encompassing hospital care, hospice services, nursing care, and assisted living facilities. Hospital services alone contributed around 4.42 trillion, reflecting high volumes of inpatient admissions, outpatient procedures, and emergency services worldwide. Hospice care services supported over 1.84 million unique beneficiaries in the United States during 2024, accumulating nearly 147.7 million total days of hospice care across home-based, inpatient, and respite settings. In the United States, nursing homes operated with a total capacity of 1.6 million licensed beds across 15,300 facilities as of 2024, with private providers operating the majority of these facilities. Assisted living facilities in the U.S. numbered about 31,000, collectively housing approximately 750,000 residents and employing over 298,800 full-time nursing and care staff. Globally, over 8,000 hospice and palliative care programs operated across more than 100 countries, underscoring the growing global demand for end-of-life care services. Telehealth stabilized at a global utilization rate of approximately 13% to 17% of healthcare interactions, reflecting the ongoing shift towards hybrid care delivery models. The healthcare services market reflects extensive growth fueled by demographic aging, increasing chronic disease prevalence, and technological advancements in both facility-based and home-based care.

Key Findings

Driver: The rapidly aging global population, with 16% expected to be over the age of 65 by 2050, is driving demand for long-term care, nursing, hospice, and assisted living services.

Country/Region: North America remains the largest regional market, accounting for approximately 38.6% of total hospital service demand in 2024.

Segment: Nursing care facilities dominate the healthcare services market with an installed capacity of approximately 1.6 million licensed beds in the United States alone.

Healthcare Services Market Trends

The healthcare services market expanded to 13.31 trillion in 2024, driven by surging demand across hospital, hospice, nursing, and assisted living services. Hospital services generated approximately 4.42 trillion in revenue, supported by rising procedural volumes, longer life expectancies, and increasing chronic disease incidence globally. The aging population remains a major market driver, with projections showing that 16% of the global population will be aged 65 and older by 2050. Hospice care expanded significantly, with more than 1.84 million unique hospice patients receiving care in the United States in 2024. These patients collectively accounted for 147.7 million days of hospice care delivery, with nearly 98.8% of that time delivered via routine home-based services, reflecting a major shift towards home-based end-of-life care. Nursing care remains the largest segment within long-term healthcare services. In the U.S., approximately 1.6 million licensed nursing home beds operated across 15,300 facilities, of which approximately 70% were managed by for-profit providers. Assisted living facilities also expanded, with nearly 31,000 active facilities accommodating around 750,000 residents. The workforce employed in assisted living settings included more than 298,800 full-time nursing and social work professionals, providing 24-hour care and support. Globally, palliative care services reached more than 8,000 operating programs across over 100 countries, offering essential care services for terminally ill patients outside of the hospital environment. Technology-driven care delivery models have also advanced. Telehealth utilization stabilized at a global average of 13% to 17% of total healthcare visits, becoming a permanent fixture in hybrid care strategies. Despite strong adoption, labor market pressures persisted, with hospice nurse turnover rates reported at 25.2%, hospice aides at 19.1%, and certified nursing assistants (CNAs) at 29.8%, creating ongoing workforce stability concerns across hospice and long-term care services. These trends collectively reflect a healthcare sector increasingly dependent on multi-setting care delivery, workforce development, and innovative care models to address the global rise in aging populations and chronic care demands.

Healthcare Services Market Dynamics

DRIVER

Aging population and chronic disease prevalence

The number of global citizens aged 65 and older reached approximately 760 million as of 2024, representing around 9.5% of the total world population. Projections indicate this could rise to 16% by 2050. This demographic trend significantly increases demand for hospice, nursing, and assisted living services. In the U.S. alone, there were 1.84 million hospice beneficiaries in 2024, who collectively received hospice care for 147.7 million days. Nursing home operations with 1.6 million licensed beds saw average occupancy rates of 85%, reflecting robust utilization. Assisted living facilities accommodated approximately 750,000 residents across 31,000 facilities, supported by 298,800 full-time caregivers. These numbers underscore a strong need for expanded capacity, staff recruitment, training programs, and care coordination services in long-term and palliative care sectors.

RESTRAINT

Workforce shortages and turnover

Hospice and long-term care sectors are strained by high turnover rates and chronic staff shortages. In 2024, reported annual turnover for registered nurses in hospice settings reached 25.2%, with hospice aides at 19.1% and certified nursing assistants at 29.8%. These levels exceed industry benchmarks, where acceptable turnover is considered ≤15%. In assisted living facilities, 45% reported caregiver workforce shortages lasting more than 3 months. Staffing constraints led to increased use of temporary staffing solutions, raising operational costs by 12% compared to 2023 levels. Additionally, 37% of long-term care facilities reported bed closures or restricted admissions due to staffing deficits during peak flu seasons, highlighting operational risk in service delivery.

OPPORTUNITY

Telehealth expansion in care delivery

Telehealth usage stabilized at 13–17% of all healthcare interactions by 2024, spanning remote assessments, care coordination, and monitoring in hospice, nursing, and assisted living settings. One major hospice provider reported a 48% reduction in visit-related costs and a 35% increase in patient satisfaction after integrating remote monitoring devices and virtual nurse consultations for its 1,200 home-based patients. Telehealth-enabled programs in nursing homes reduced hospital readmissions by 22% among 500 facilities monitored remotely. Expanded reimbursement policies in 42 states (U.S.) included telehealth for palliative consultations and chronic disease check-ins. These developments open new service models, remote specialty care, and expanded access to mental health counseling across distributed care settings.

CHALLENGE

Rising operational costs in long-term care

The cost of care continues to rise. In 2024, U.S. nursing home median daily charges reached $278 for a semiprivate room and $316 for a private room—up from $267 and $303 in 2023. Assisted living monthly costs averaged $4,800, a 4% increase over 2023. Home hospice visits rose 3.7% in per-visit labor cost. Despite occupancy rates of 85%, per-resident costs for medical supplies and PPE rose by 12% annually. Regulatory compliance mandates also increased facility overhead: 56% of nursing care facilities reported increased costs due to new staffing ratio regulations. These pressures continue to challenge provider margins and create barriers to optimizing investments in technology and service expansion.

Healthcare Services Market Segmentation

The healthcare services market divides into hospice, nursing care, and assisted living facilities, each with patient demographic segments (female, male). Hospice care delivered 147.7 million patient-days via 1.84 million U.S. beneficiaries. Nursing care operated 15,300 facilities with 1.6 million licensed beds, while assisted living included 31,000 facilities serving 750,000 residents. Gender application segmentation indicates that 58% of nursing home and assisted living residents are female, while 42% are male—a split consistent across care segments, with hospice care recording 55% female and 45% male utilization.

By Type

Hospice: Hospice services in 2024 supported 1.84 million unique beneficiaries in the U.S., delivering 147.7 million patient-days. Routine home care comprised 98.8% of total hospice days, equaling approximately 146 million days annually. The average length of stay in hospice was about 80 days, with 23% of patients receiving inpatient hospice during the final week. Female patients represented 55% of admissions, while male patients represented 45%. These data reflect increased public awareness and provider capacity for home-based end-of-life care, which continues to witness steady demand.
Nursing Care: Nursing care facilities totaled 15,300 in the U.S. in 2024, offering 1.6 million licensed beds with an average occupancy rate of 85%, serving approximately 1.36 million residents daily. Nurses and aides turnover rates exceeded 25% for RNs and 30% for CNAs. Assisted living accounted for 45% of nursing facility workforce shortages. Female residents represented 60% of the census, while male residents made up 40%. The nursing care segment continues to drive the largest share of long-term care demand in the U.S.
Assisted Living Facilities: Assisted living facilities numbered 31,000 in 2024, with 750,000 residents. Full-time staff included 298,800 nurses and caregivers. Female residents comprised 62% and male residents 38%. Daily bed occupancy averaged 90%, and average length of stay was 32 months. These strong census figures reflect aging-in-place preferences and healthcare delivery partnerships expanding within senior living communities.

By Application

Female: Females represented approximately 58% of residents in nursing home and assisted living settings, totaling 755,000 residents. In hospice care, 55% of recipients were female, totaling approximately 1.01 million individuals. Higher utilization is due to the longer life expectancy of women and higher incidence of chronic illness in later life. These demographics shape provider staffing, service priorities, and wellness programming.
Male: Male residents accounted for 42% of nursing and assisted living residents (about 545,000 individuals). In hospice services, men represented 45% of total beneficiaries, or roughly 830,000 individuals. Male participation in care services remains lower but growing in parallel with the aging male population and increasing chronic health conditions. Providers are adapting with gender-sensitive marketing and targeted wellness programs.

Healthcare Services Market Regional Outlook

North America

led global home healthcare with a 50.6% share of total services as of 2023, driving demand in hospice, nursing, and assisted living sectors. Hospital services in the region represented approximately 38.6% of global hospital care utilization in 2024, supported by more than 12.2 million Medicare–Medicaid enrollees. Canada’s total healthcare expenditure reached nearly 242 billion (11.5% of GDP) by 2017 and continued to grow, with 64.2% of spending funded publicly.

Europe

followed with a 21.4% share of home healthcare services in 2023 and approximately 113 billion in home healthcare size in 2024. The continent operated over 8,000 palliative care programs across more than 100 countries. The region also implemented a €5.1 billion EU4Health budget for 2021–2027. Life expectancy increases and aging populations across the 27 EU member states resulted in expanding long-term care services, with staffing shortages while digital care programs rose steadily.

Asia‑Pacific

maintained the fastest-growing outlook amid hospital and home healthcare demands. North America and Europe led share, but Asia‑Pacific home healthcare and telehealth platforms gained ground, supported by rising demand in China, Japan, South Korea, India, and Southeast Asia. The share of millions of elderly in China and India continues to increase care services demand both in home and institutional settings.

Middle East & Africa

held a smaller installed base relative to North America and Europe. Public-funded healthcare and private growth co-exist, with demand driven largely by urban hospital expansions and rising chronic illnesses. Telehealth began to be adopted gradually to address geographic and workforce constraints.

List Of Healthcare Services Companies

Brookdale Senior Living
Sunrise Senior Living
Emeritus Corporation
Atria Senior Living Group
Extendicare
Gentiva Health Services
Senior Care Centers of America
Kindred Healthcare
Genesis Healthcare Corp.
Home Instead Senior Care

Brookdale Senior Living: Brookdale operated approximately 65,000 senior-living units across more than 860 communities in 2023. Within this, around 20,000 licensed nursing beds and 45,000 assisted living/apartment units served predominantly elderly demographics.

Kindred Healthcare: Kindred managed 120 hospitals and 650 post-acute care facilities as of 2023, with more than 50,000 skilled nursing and rehabilitation beds, and delivered nearly 4 million therapy visits annually across its service network.

Investment Analysis and Opportunities

Private equity firms and venture investors have poured more than 10.7 billion into digital health in 2023, up from 29.2 billion in 2021 but rebounding due to renewed interest in AI-enabled telehealth, with 5.7 billion raised in H1 2024. As healthcare shifts out of hospitals, remote and home-based care services attract significant investment. Hospitals are increasingly adopting home-health programs supported by legislation, reducing inpatient costs and expanding care throughput. Telehealth and telemedicine services accounted for about 123.3 billion in 2024 global market size, with North America comprising 46.6% of the total and evolving hybrid models accounting for 13–17% of all patient interactions. In North America, national health expenditure rose to 4.9 trillion (17.6% GDP), with Medicare spending at 1.03 trillion and Medicaid at 872 billion, highlighting large-scale payer support for outpatient, home, and long-term care services. Global home healthcare reached 424 billion in 2024, with North America delivering nearly 190 billion, supported by 50.6% regional share. Telehealth services generated 94.1 billion in 2024, with 46.6% from North America and Asia-Pacific rapidly expanding telemedicine use. Opportunities exist in consolidating home-health service providers to serve the growing elderly demographic—760 million aged 65+ in 2024. Emerging ventures in hospitals-as-home model, enabled by advanced remote monitoring devices, achieved 48% cost reduction and 22% drop in nursing home readmissions in pilot programs. Healthcare payer services in North America reached 75% share, prompting outsourcing demand for claims, enrollment, and risk model optimization services by providers. As labor shortages persist—U.S. healthcare employed 17 million workers in 2023, with severe shortages in rural primary care and mental health—technology-backed staffing and workflow solutions present another avenue for investment. Despite limited exits, entities like New Mountain are investing in healthcare AI companies targeting revenue cycle management and diagnostics, setting foundations for future paymaster efficiency. Telehealth regulation tightening in North America, Europe, and Asia-Pacific may restrict low-quality providers, favoring larger integrated players with compliance and data security infrastructures.

New Product Development

In 2023–2024, the healthcare services market introduced several key innovations across care settings, remote delivery systems, and reimbursement platforms. Major hospital chains rolled out “hospital-at-home” programs supported by advanced patient monitoring technology. These systems enabled delivery of intravenous infusions, oxygen therapy, and physical therapy with device-enabled care workflows for 48% lower costs than traditional inpatient stays. Home health agencies paired virtual nursing consultations with remote vitals monitoring for around 13–17% of all home visits, increasing patient satisfaction and reducing travel burdens. Nursing home operators implemented IoT-enabled bed sensors and fall-detection systems across 300 pilot facilities; these modules decreased falls by 32% and reduced emergency transfers by 26% in the first 12 months. Assisted living facilities expanded telepsychiatry and mental health services to remote residents, growing utilization fivefold within two years with patients completing 58% of appointments virtually. Hospice and palliative care providers launched mobile care vans equipped with remote consultation stations, delivering services to roughly 12,000 rural and underserved patients. These vans performed full hospice intake, including remote symptom assessment and virtual social support. Health systems developed payer-facing digital revenue cycle platforms combining claims processing and denial avoidance logic. These systems reduced billing errors by 18% and accelerated reimbursement turnaround by an average of 12 days per claim. Finally, AI-driven chronic disease coaching platforms were introduced into home-based care, enabling daily BP and glucose readings. Early adopter programs reported 72% patient engagement and 22% fewer hospital readmissions over six months, reflecting integration of preventive care tools into service delivery.

Five Recent Developments

Private equity firm New Mountain launched Smarter Technologies, raising hundreds of millions to integrate healthcare AI with hospital billing and claims.
Telehealth funding reached 10.7 billion in 2023 and 5.7 billion in H1 2024, driven by AI-based services.
Hospitals in the U.S. deployed “hospital-at-home” protocols for 48% reduced costs and remote monitoring for over 1.2 million patients.
Global telehealth services achieved 123.3 billion in market size in 2024, with North America representing 46.6% of usage.
Home healthcare services reached 424 billion globally in 2024, with North America accounting for 50.6% share and rapid APAC healthcare app adoption.

Report Coverage of Healthcare Services Market

This report spans 82 pages of quantitative and qualitative analysis tracing the value and volume of global healthcare services in 2023–2024. It provides a breakdown of approximate 13.31 trillion spent on hospital, hospice, nursing, and assisted living services, including per-region allocations, usage statistics, service capacities, and evolving delivery models. Healthcare infrastructure overview includes U.S. hospital activity (4.42 trillion), U.S. nursing home capacity (1.6 million beds), hemiplegia staffing data, hospice program coverage (1.84 million beneficiaries), and assisted living workforce details (298,800 staff for 750,000 residents). The report offers regional analysis for North America, Europe, Asia‑Pacific, and Middle East & Africa, detailing spending levels, demographic factors, and service coverage gaps, such as 17 million healthcare workers in the U.S., 75 million in rural primary care shortage zones, and telehealth equity. Core sections examine market drivers, restraints, opportunities, and challenges. These include aging demographics (projected 760 million 65+ in 2024 to 16% by 2050), workforce turnover metrics (25.2% RN turnover, 29.8% CNA), telehealth use (13–17%), and nursing home cost trends ($278–316 daily charges; $4,800 monthly for assisted living). The report features segmentation analysis: hospice (147.7 million days; 1.84 million users), nursing care (1.6 million beds across 15,300 homes), and assisted living (750,000 residents in 31,000 facilities). Gender breakdown shows 58% female and 42% male distribution. Company insights profile Brookdale Senior Living (65,000 units) and Kindred Healthcare (50,000 beds, 650 facilities, 4 million therapy visits). Investment analysis highlights 10.7 billion in digital health outside hospitals, 123.3 billion telehealth market, 424 billion home healthcare, and 5.7 billion AI funding in H1 2024. New product sections cover home-health telemonitoring, IoT fall prevention, mobile hospice units, revenue cycle tech, and chronic disease AI coaching. Additional content includes case studies on rural home care, hospital conversion programs, facility operation efficiency models, hourly and outcome-based reimbursement frameworks, and appendices listing provider directories, policy reforms by region, payer reimbursement comparisons, and staffing benchmark metrics. The report equips healthcare executives, payers, investors, policy planners, and care providers with comprehensive data, emerging trends, and strategic insight for service optimization and growth planning.