Navigating Growth in Home Care
The US home care industry thrives amid challenges, emphasizing workforce, technology, and strategic partnerships for success.
Home Care
Market Analysis
The US Home Care sector is experiencing significant growth, with the global market projected to reach $747.7 billion by 2030. Despite some discrepancies in 2024 US market valuations, the industry shows signs of maturity and strong expansion, driven by an aging population, increasing prevalence of chronic diseases, and ongoing technological advancements. However, market growth faces challenges from caregiver shortages, low wages, regulatory complexities, and limited insurance coverage. Strategic priorities for industry stakeholders should include investment in caregiver support and retention, technological integration, and proactive adaptation to evolving regulatory frameworks to capitalize on ongoing market opportunities.
~
$
193.5
B
Market Value 2024 (U.S)
$
253.4
B
Market Value 2030 (U.S)
7.48
%
CAGR (U.S)
Key Market Drivers
Aging population
Rising chronic diseases
Technological advancements
Market Inhibitors
Caregiver shortages
Low wages and burnout among caregivers
Regulatory complexities
Our Insights
The US home care sector’s rapid growth presents both lucrative and complex opportunities. Success will hinge on strategic differentiation—leveraging technology for personalized, efficient care and expanding into specialized services like chronic disease and geriatric management. Businesses must proactively address workforce shortages and regulatory hurdles by prioritizing caregiver support, retention, and compliance adaptation. Partnerships, geographic expansion, and clear communication of quality are essential to secure referrals and build trust. Given rising competition and labor costs, staying agile, embracing digital solutions, and closely monitoring regulatory and reimbursement trends are imperative for sustained growth and investor appeal in this maturing market.
Key Players in The Industry
CenterWell Home Health
Large, comprehensive services, affiliated with Humana, providing a wide range of in-home care services.
Amedisys
Diversified services including home health, hospice, and high-acuity care.
Optum
Extensive service offerings, leveraging a complex relationship system.
Recent
M&A Activity
The home-based care M&A market is experiencing a resurgence, driven by aging private equity funds and a growing preference for in-home care. Key trends include rising labor costs, technology adoption, and the need for service diversification. Investors are closely monitoring Medicaid funding and targeting well-positioned businesses.
Acquisition
Past 12-24 months
Pennant Group acquired Signature Healthcare at Home (Oregon operations)
Expand operations in Oregon.
Joint Venture
Past 12-24 months
Providence and Compassus (Providence at Home with Compassus)
Expand service area.
Acquisition
Past 12-24 months
DispatchHealth acquired Medically Home
Expand care across 50 major metropolitan areas.
