Reports Shed Insight on Home Care Franchise Market Growth
Two reports from prominent research firms bring good news for the home care business. Those in the home care industry – as well as those thinking of purchasing a home care franchise – will be excited to learn that growth for elderly services has not only been robust in recent years but that it’s expected to grow even faster in the near future.
This news might not be so surprising for some home care franchise owners; after all, our industry has been anticipating this trend for some time. But what’s even more striking is this: out of all elderly services, home care services are growing faster than any other.
Home Healthcare to Hit $355 Billion by 2020
The good news comes out of two separate reports, one by Grand View Research and another by Research and Markets.
In the Grand View Research report, which assessed the global market for home healthcare, researchers projected a 7.8% compound annual growth rate over the period of 2013 to 2020. Over that period, researchers expect the global market for home healthcare will grow from $210 billion to a staggering $355 billion, with over 40% of revenues concentrated in the North American market.
Meanwhile, the Research and Markets report brings even more encouraging news. This report focused specifically on the US long-term care market, covering nursing facility care, assisted living facility care, and at-home care over the period of 2008 to 2013. Over that period, the long-term care market grew 4.3%, encouraging numbers given that the first Baby Boomer didn’t hit 65 until 2011.
Even more encouraging news for home care franchise owners is the growth that the home care industry saw over that time frame. While nursing care grew at a relative snail’s pace of 1.6% and assisted living grew at a robust 5.6%, home care services outstripped them both, growing at a fantastic 7.2%. That’s music to the ears of both current and prospective home care franchise owners.
What This Means for Home Care Franchises
This data confirms two major foundations of the modern home care franchise business model:
- First, as the Baby Boomers continue to hit retirement age, the home care industry is going to see continually fantastic growth.
- Second, Americans’ increasing preference for at-home care (as opposed to facility-oriented senior living) will accelerate growth for home care franchise owners compared to owners of other elderly care services.
More than anything else, this data confirms what we’ve been saying ever since this growth period was first forecast: there’s never been a better time to own a home care franchise.
If you’re a budding entrepreneur looking to own your first home care franchise, contact Visiting Angels today for information about our open home care franchise opportunities.