Europe Home Healthcare Market Analysis

Europe Home Healthcare Market Executive Summary

The Europe home healthcare market was valued at $68.90 Bn in 2022 and is estimated to expand at a compound annual growth rate (CAGR) of 6.67% from 2022 to 2030 and will reach $115.49 Bn in 2030. The European Home Healthcare industry has grown dramatically in recent years, owing to an aging population and technological developments. As a result, over the regional period, the European region is accounted for as the second largest in the home healthcare industry.

The expanding elderly population and technological improvements drive the expansion of the home healthcare market. Germany is forecast to have the biggest share of the European home healthcare market and to lead the industry during the timeframe, followed by France and the United Kingdom. Due to the increasing amount spent on in-home healthcare and the growing demand for experienced nursing personnel in-house, the German home healthcare market is predicted to have the greatest market.

Market Dynamics

Market Growth Drivers

The element driving the market growth is increased awareness of home care services and the introduction of new equipment for treating various ailments at home. The availability of portable technologies such as heart rate monitors, breathing assistance, and blood glucose monitors has increased the efficiency and effectiveness of lifestyle disease home care. With the transition from inpatient to outpatient care, government reimbursement is also boosting the market for home care in Europe. The government and obligatory financing schemes pay for more than three-quarters of outpatient care costs in the EU. Outpatient specialty and primary care are often free at the point of use in the majority of EU countries.

The rising prevalence of chronic diseases such as diabetes and heart disease is increasing the demand for home healthcare services as they are better suited to manage and monitor these conditions on an ongoing basis. The aging population in Europe is a key driver of the home healthcare market. As people live longer, the demand for home healthcare services is expected to increase, as older individuals are more likely to need assistance with activities of daily living and medical care. Home healthcare is often seen as a cost-effective alternative to traditional hospital care or nursing home care. By providing care in the home, patients can avoid the high costs associated with hospitalization, and also reduce the burden on overburdened hospitals.

Market Restraints

Despite increasing demand for home healthcare services, funding for these services is often limited, particularly in countries that are facing economic challenges. This can make it difficult for home healthcare providers to invest in new technologies and programs, and can also limit access to care for patients. The quality and safety of home healthcare services can be difficult to ensure, particularly in cases where patients are receiving care from unlicensed or unregulated providers. This can lead to poor outcomes for patients, and can also undermine the credibility of the home healthcare sector as a whole. There is still a stigma associated with receiving care in the home in some parts of Europe, and cultural barriers can also limit access to care. For example, some older individuals may feel that receiving care in the home is a sign of weakness, or that it is not in line with traditional cultural norms.

Competitive Landscape

Key Players

• Heritage Independent Living (GBR)
• Mears Group (GBR)
• Smith & Nephew plc (DEU)
• Knight Health Holdings (DEU)
• Mölnlycke Health Care AB (DEU)
• ConvaTec Group (DEU)
• Medyca (ITA)
• Vivisol Srl (ITA)
• Medical Dimension (ITA)
• Aster (ITA)
• Melsungen AG (NLD)
• Hollister (NLD)
• Coloplast (NLD)
• Medline Industries (NLD)
• Acelity (NLD)
• Access home healthcare (NLD)

Notable Deals

1. In Dec 2021 Aveanna Healthcare Holdings Inc., a leading, diversified home care platform focused on medically complex, high-cost patient populations, announced  that it has completed the $345 million acquisition of Comfort Care, a leading adult home health
2. In 2020, Prosensa, a leading provider of home healthcare services in France, acquired Bientôt la Rentrée at $840 Mn a provider of home healthcare services for children in France. This acquisition expanded Prosensa's presence in the home healthcare market and helped the company better serve the needs of families and children in France.
3. In 2019, Bupa, a leading provider of health insurance and health services, acquired Clinovia, a provider of home healthcare services in the UK. This acquisition enhanced Bupa's presence in the home healthcare market and helped the company better serve the needs of patients in the UK.

Healthcare Policies and Regulatory Landscape

National healthcare regulators: Each country in Europe has its own healthcare regulator, which is responsible for setting standards and policies for the delivery of healthcare services, including home healthcare. These regulators often work closely with other national-level organizations, such as health insurance companies and professional associations, to promote the development of the home healthcare sector.

European Union (EU): The EU plays a key role in shaping healthcare policy in Europe, and has established several initiatives to support the growth of the home healthcare market. For example, the EU has established the Cross-Border Healthcare Directive, which allows patients to receive care in another EU country and have the cost reimbursed by their home country's healthcare system.

World Health Organization (WHO): The WHO is a global organization that sets standards and policies for the delivery of healthcare services, including home healthcare. The WHO works closely with national and regional healthcare regulators to promote best practices in patient care, and to support the development of the home healthcare sector.

Professional associations: There are also several professional associations in Europe that represent the interests of home healthcare providers, including the European Association for Home Care (EAHC), the European Association of Healthcare Providers (EAHP), and the European Telemedicine Network (ETN). These organizations provide a forum for home healthcare providers to share best practices, advocate for policies that support the growth of the home healthcare sector, and to provide training and education for home healthcare professionals.

Reimbursement scenario

The reimbursement scenario for the home healthcare market in Europe varies by country, but in general, home healthcare services are reimbursed by national healthcare systems or by private insurance companies. The level of reimbursement for home healthcare services is influenced by factors such as the type of service, the patient's condition, and the country's healthcare policies. In many countries in Europe, home healthcare services are covered by national healthcare systems, although the extent of coverage and the level of reimbursement vary widely. In some countries, home healthcare services are covered for all patients, while in others, coverage is limited to specific patient populations or to certain types of services. In some countries, private insurance is the main source of reimbursement for home healthcare services, while in others, it supplements public healthcare coverage.