Home Healthcare Services Market Size, Share, Segmentation, Review, Trends, Opportunities, Growth, Demand and Forecast to 2029
Home Healthcare Services Market Overview:
The global home healthcare services market is projected to grow at a compound annual growth rate (CAGR) of approximately 9–10% through 2029. Market expansion is primarily driven by a rapidly aging population, a rising number of retirees, and the increasing adoption of technology-enabled healthcare delivery models by physicians, patients, insurers, regulators, and home health and hospice agencies. Additional growth drivers include greater acceptance of in-home palliative and hospice care, home nursing services, medical supply delivery, and at-home diagnostic services.
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Home healthcare services are delivered by both skilled and non-skilled healthcare professionals in the comfort of a patient’s home. These services encompass post-acute care, palliative and hospice care, nursing care and wellness checks, specialized care (such as Alzheimer’s and dementia care, stroke recovery, and recuperative care), companionship and personal care, as well as ancillary services including meal planning, pharmaceutical support, 24-hour monitoring or live-in care, and laboratory and imaging services.
Favorable Reimbursement Policies and Private Equity Investments Fuel Market Growth
Supportive reimbursement frameworks and increasing private equity investments are significantly contributing to the growth of the global home healthcare services market. In major markets such as the United States, Medicare Part A and/or Part B cover eligible home health services for homebound patients requiring part-time or intermittent skilled care. These services are typically coordinated by Medicare-certified home health agencies based on a physician’s or authorized practitioner’s orders.
Covered services generally include skilled nursing care, physical, occupational, and speech therapy, medical social services, intermittent home health aide support, injectable osteoporosis drugs for women, durable medical equipment, and medical supplies used at home. In calendar year 2023, the Centers for Medicare & Medicaid Services (CMS) estimated an aggregate increase of 0.7% in Medicare payments to home health agencies compared to 2022.
Attracted by strong market fundamentals and long-term growth potential, private equity firms are increasingly investing in the sector. Notable examples include Bow River Capital’s strategic investment in Amazing Care in May 2022, Health Care At Home India Pvt Ltd securing USD 15 million from ABC World Asia in January 2022, and RiverGlade Capital’s acquisition of Home Helpers® Home Care in April 2021.
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Expanding Role of Artificial Intelligence in Home Healthcare
The integration of artificial intelligence (AI) into home healthcare services has transformed care delivery models in recent years. AI-enabled sensors allow for continuous monitoring of patient health metrics, triggering real-time alerts when abnormalities are detected. AI-powered mobile applications support preventive care by tracking and managing chronic conditions such as diabetes, obesity, and cardiovascular diseases, maintaining nutrition records, generating reports, and notifying caregivers or physicians of any deviations.
Additionally, AI-based voice assistants assist patients with medication reminders, vital sign monitoring, appointment scheduling, and daily health management. As noted by a U.S.-based home healthcare provider executive, AI adoption is expected to accelerate significantly, enabling more efficient management of complex care plans, optimizing caregiver scheduling and routing, and supporting data-driven decision-making across home care agencies.
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Competitive Landscape and Growth Strategies
The global home healthcare services market is moderately fragmented, with several established players including Amedisys, LHC Group (now part of UnitedHealth Group), AccentCare, Elara Caring, Interim HealthCare, VITAS Healthcare, James River Home Health, Home Helpers Home Care, Virginia Kares Home Care Services, and Companion Extraordinaire Home Care Services.
To strengthen their market position, leading companies are pursuing both organic and inorganic growth strategies such as acquisitions, strategic partnerships, joint ventures, and service expansions. For example, PurposeCare acquired three Midwest home care agencies in July 2023 to expand its regional footprint. In February 2023, UnitedHealth Group completed its acquisition of LHC Group, integrating it into Optum. Earlier, in September 2022, LHC Group entered into a joint venture with the University of Maryland Medical System to enhance in-home healthcare services across Maryland.
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