Retirement Communities Market Definition
The retirement communities market consists of sales of retirement community care services and related goods by entities that provide accommodation and nursing care services for the elderly who are generally able to care for themselves but might require assistance from home care agencies. The care in retirement communities’ service typically includes room, board, supervision, and assistance in daily living, such as housekeeping services. Activities and socialization opportunities are often provided by retirement communities. The major clientele for retirement communities is the population aged 60 years and above.
Retirement Communities Market Size
The global retirement communities market reached a value of nearly $218.6 billion in 2019, having grown at a compound annual growth rate (CAGR) of 8.6% since 2015, and is expected to grow at a CAGR of 9.8% to nearly $317.4 billion by 2023.
Growth in the historic period can be attributed to the rise in elderly populations and increased life expectancy rates globally. The percentage of population aged 65 and above in the global population has increased from 6.9% in 2000 to 8.9% in 2018. In 2015, the global life expectancy at birth was estimated at 70.8 years. Since 1950-1955, life expectancy at birth has risen by more than 10 years in Northern America, Europe and Oceania, and by close to 25 years in Latin America and the Caribbean. Factors that will negatively affect the market are low access to retirement communities, shortages of skilled human resources, and insufficient public health insurance coverage.
Growth in the forecast period will be driven by the rapidly aging population, increasing life expectancy, increasing prevalence of age-related diseases, and technological advances in elderly healthcare. The larger population of seniors results directly from the combination of historic birth patterns and increased longevity.
Retirement Communities Market Drivers
The Key drivers of the retirement communities market include:
Aging Populations – The aging population will continue to be a driver of the retirement communities market. During 2018-2022, the number of people over 65 is expected to increase from approximately 550 to 650 million globally, an increase of 18% according to the Population Reference Bureau. The rise in the aging population increases the potential for elderly people to opt for accommodations in retirement communities. An increase in the size of the aging population, which is a major risk factor for many chronic diseases, such as cardiovascular disease, cancer, arthritis, dementia, cataracts, osteoporosis, diabetes, hypertension and Alzheimer`s disease, is also expected to drive the assisted living with on-site nursing care facilities market, supporting the growth of the overall retirement communities market.
Retirement Communities Market Restraints
The key restraints on the retirement communities market include:
Insufficient Public Health Insurance Coverage – During the forecast period, inadequate health provision is expected to be a major barrier for the growth of the retirement communities industry in the forecast period, limiting growth opportunities for assisted living facilities with nursing care and continuing care retirement communities. Lack of public health insurance coverage, especially in developing countries, restricts access to healthcare for many people. According to the WHO and the World Bank, 400 million people globally do not have access to essential health services, and 6% of people in low and middle-income countries pushed further into extreme poverty because of low healthcare expenditure. Inadequate pubic health insurance schemes in developing economies are expected to be one of the major restraints on the retirement communities market.
Retirement Communities Market Trends
Major trends influencing the retirement communities market include:
Individualized Service Plans
Retirement community service providers are developing individualized service plans to treat and aid individuals to recover from chronic disease conditions. Individualized service plans are developed by considering factors such as physical needs, mental needs, living situation and compliance to medications. A service plan includes the individual’s unique list of medical conditions and personalized treatment plans. Retirement community care providers make use of big data to derive information on individuals and track their health conditions to provide a specialized service plan to better serve the individuals. Customized service plans are improving treatment outcomes and enabling retirement community service providers to increase their revenues. The Centers for Medicare & Medicaid Services (CMS) has implemented individualized service plans for long-term care patients.
Telehealth To Improve Senior Health Care
Telehealth technology is extensively being used by nursing care providers in retirement communities to improve the quality of care being offered to the residents. Telehealth is the use of digital and communication technologies to remotely access the health care services. Telehealth provides a wide range of diagnostic, therapeutic, care management services and supporting tools for the caregivers such as assisted living personnel and retirement communities’ on-site doctors and nurses. It includes other technologies and services such as virtual visits conducted over live video, email services, remote patient monitoring and activity monitoring depending on individual needs. Major companies offering telehealth services include 19 Labs, 3Derm Systems, A &D Medical, Advanced ICU Care, Advanced Telehealth Solutions.
Opportunities And Recommendations In The Retirement Communities Market
Opportunities –The top opportunities in the global retirement communities market will arise in the rest homes without nursing care segment, which will gain $15.6 billion and the retirement communities market size will gain the most in the USA at $11.82 billion.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the psychiatry service providers to consider adoption of technology to serve the older population, expanding in countries with large geriatric population, focus on expanding through collaborations, and increase visibility through a high-performance website.
Retirement Communities Market Segmentation
The retirement communities market is segmented by type of mental disorder, by type of patient and by geography.
The retirement communities market is segmented by type into -
- a) Continuing Care Retirement Communities
- b) Assisted Living Facilities With Nursing Care
- c) Assisted Living Facilities
- d) Rest Homes
By Geography- The retirement communities market is segmented into
Western Europe is the largest market for retirement communities, accounting for 41.6% of the global market. It was followed by North America, Asia Pacific, South America, Eastern Europe, Africa, and Middle East. Going forward, Middle East and Africa will be the fastest growing regions in the Retirement Communities market.
- o North America
- o Western Europe
- o Asia Pacific
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Retirement Communities Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • HC-One Ltd.
- • Brookdale Senior Living Inc.
- • Five Star Senior Living
- • Holiday Retirement,
- • Sunrise Senior Living
- • Erickson Living
- • Affinity Living Group
- • Atria Senior Living Group
- • Aveo Group
- • Covenant Retire Communities Inc.
- • Amica Retirement Homes
- • Delmanor Seniors’ Communities
- • Serena Senior Care
- • Residencia Lourdes
- • Sun City Hilton Head and Sun City Huntley
- • HC-One Ltd.
- • Sunrise Senior Care
- • Audley
- • Housing 21
- • Yuryo Rojin Home
- • Nikkyou Create Ltd.
- • ACTIVELIFE, Ltd.
- • Ashiana Housing
- • Covai Property Centre (I) Private Limited
- • Eden Retirement Living
- • Oak Tree
- • Stockland
- • Golden Heights
- • Lendlease Corp.
- • Adorno
- • Absolute Care LLC
- • Sunrise
- • The Blackburn Home
- • The Smiles Foundation
- • Diur Mugan
- • Beit Avot
- • Methodist Homes
- • Rossetti Care
- • Faircape Retirement Holdings
- • Evergreen
- • Collins Residential