Global Caring Services Industry
The world caring services industry (part of the global consumer services market) touches on many sectors, including senior care, social care, childcare and healthcare. The industry is highly labor intensive, as caregivers must give maximum attention to patients, children and elderly persons.
Demand for care-related personal services continues to climb due to rising employment rates, putting households in a better position to pay for care for family members of different ages. With many families now having two parents in the workforce, the demand for childcare services also continues to expand. Similarly, with elderly family members living longer and suffering from a host of conditions requiring intensive care, demand for nursing home care and home healthcare is rising steadily.
Key Market Segments
The world home healthcare industry is expected to reach $372 billion by 2015, according to Global Industry Analysts. Cases of diseases affecting older patients, including cardiac problems, diabetes, Alzheimer’s and arthritis, are on the rise and necessitate a greater degree of care. Due to staff shortages, technology is playing an increasingly vital role in the home healthcare services industry. The home healthcare sector is growing globally, with the US and the EU dominating the market. These regional markets have the support of advanced technology and well-established equipment-manufacturers. Thanks to an aging population and awareness surrounding low-cost treatments and health insurance for home care, the healthcare market is particularly strong.
In the UK, an aging population and an increasing number of elderly people suffering from diseases requiring acute care is driving demand for nursing homes and care homes. However, following the economic recession, and government budget cuts in particular, the market is falling short of its potential, according to research from Key Note. Under the government’s 2010 Comprehensive Spending Review, annual local authority funding was cut by 7% through 2014. Consequently, some local government bodies upped the eligible age for free social care for adults. The UK care home market is dominated by a limited number of large companies. Leading names operating in the market include BUPA, Sunrise Senior Living and Barchester Healthcare. Previously the UK’s leading home care outfit was Southern Cross. However,since its collapse, Four Seasons Health Care has taken the top spot, taking on 140homes from Southern Cross in the second half of 2011. Though negatively impacted by the economic recession, Key Note research shows thatcare homes remain a long-term growth opportunity because of increasing longevityrates. Segments likely to hold strong potential will be outfits offering specialist care forage-related diseases. Demand for high-quality care is equally set to rise.
The US childcare services industry is forecast to reach close to $40 billion by 2015, according to research from Global Industry Analysts. Market growth is fuelled by rising employment and demographic factors such as birth rates and growth in the number of children under 5 years of age, a segment which should see particularly strong growth through 2015. With the number of dual-income households increasing in the US, many families have two parents working outside of the home, with the means to pay for child day care.
India’s preschool childcare industry is expected to record yearly growth of close to 14% between 2011 and 2014, according to RNCOS. Market growth will be fuelled by rising levels of disposable income, rising numbers of dual-income households and high-qualitypreschool education demand. India’s preschool education market, which offers pre-primary education for the two-to-four age group, is witnessing a rising level of franchising, with many businesses establishing or growing their brands by way of education franchises. Leading names operating in the market include Euro kids and Kidzee.
The global caring services industry creates employment because it is a labor-intensive sector. Care service customers are often unable to look after family members due to a lack of time or experience, or both. Daycare for young children continues to prove vital for households where both parents are working outside of the home.
Demographics also play a role in the caring services industry as aging populations are in need of care because of a combination of increased longevity and higher instances of conditions like Alzheimer’s and cardiac disease. Moving forward, the industry will face challenges of reduced government spending on healthcare but benefit from rising employment and income, permitting people to pay for caring services for younger and elderly family members.
Leading Industry Associations
- Child Care Services Association
- National Day Nurseries Association (UK)
- National Association of Professional Geriatric Care Managers (US)
- National Adult Day Services Association (US)
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