ResearchAndMarkets.com Releases United States Assisted Living Facility Market Report 2021-2027
ResearchAndMarkets.com released the “U.S. Assisted Living Facility Market Size, Share & Trends Analysis Report, and Segment Forecasts, 2021-2027” report.
The U.S. assisted living facility market size is expected to reach USD 119.2 billion by 2027 and is expected to expand at a CAGR of 5.3% from 2021 to 2027
The rising incidence of brain injury, growing geriatric population, and technological developments are expected to boost the market growth during the forecast period.
In the U.S., the assisted living facilities (ALF) provide meals, housekeeping services, social and recreational activities, and exercise and wellness programs. They also provide medical assistance in case of an emergency. Adults opting for assisted living pay for it from their savings and investments. Community service providers, household vendors, and premium elderly homes offer the required assistance and facilities to meet the daily necessities of the elderly.
The rise in the geriatric population due to the increased life expectancy is expected to grow rapidly in the future. According to the National Institute on Aging (NIA), globally, around 8.5% of the population is aged 65 years and above. As per the data published by the Population Reference Bureau, the number of Americans aged 65 years and above is projected to reach 95 million by 2060, from 52 million in 2018; by percentage, the age group of 65 years and above is expected to increase from 16% in 2018 to 23% by 2060.
Based on the nature of the population served and service provision, residents at assisted living facilities may be at a high risk of contracting COVID-19. To cope with the situation, in March 2020, CMS released guidelines for nursing homes and ALFs to help curb the spread of the novel coronavirus.
These measures include prohibitions on visitors and nonessential staff, daily monitoring for symptoms, screening employees, implementing infection control and cleaning protocols, ensuring social distancing, hiring and training additional employees, adjusting activities, and paying bonuses and overtime.
The majority of these facilities were not allowed to accept new residents, and therefore, had no new revenue streams for the additional expenses associated with the virus, which is hampering the market growth.
U.S. Assisted Living Facility Market Report Highlights
- The industry is witnessing dynamic mergers, acquisitions, and joint venture agreements. For instance, in July 2019, Kindred Healthcare, in a joint venture with Atlantic Health System, completed the construction of a 38-bed comprehensive inpatient rehabilitation facility – Atlantic Rehabilitation Institute – in Madison, NJ
- Key players in the U.S. market for the assisted living facility are taking up initiatives, such as merger & acquisition, joint ventures, and partnerships, in order to increase their market presence
- In August 2020, Integral Senior Living entered into a partnership with Investcor Development, along with Bow River Capital and SMC Construction, to develop a new assisted living and memory care community at Sparks, Nevada
Market driver analysis
- Growing geriatric population
- Rising incidence of brain injury
- Growing prevalence of target diseases
- Technological advancements
Market restraint analysis
- High cost for specialized treatment
- Limited coverage
U.S. ALF Market: Business Environment Analysis Tools
- PESTEL Analysis
- Porter’s five forces analysis
- Regulatory & Reimbursement Scenario
- Qualitative Analysis: Impact of COVID-19 on Assisted Living Facilities