Report

Global hospice market is projected to witness a CAGR of 9.10% during the forecast period 2024-2031, growing from USD 76.93 billion in 2023 to USD 154.42 billion in 2031. The market for hospice care is expanding dramatically under the influence of driving forces such as the growing geriatric population and rising chronic terminal disease burden, coupled with the shifting attitude of commons towards end-of-life care.
Hospice care is a specialized approach to end-of-life support focused on providing comfort, pain management, and emotional assistance for patients with terminal illnesses. Services include personalized care plans, counseling for patients and families, spiritual support, and care coordination to enhance the quality of life during the final stages. The market for services is expanding at different rates in different demographics depending on the acceptance statistics in that particular demographic. For instance, in developing and orthodox demographics, the acceptance rate and market are quite limited, while in developed and open-minded demographics, the acceptance rate and market are expanding. The major challenges in the market include a low acceptance rate for such services due to social norms, limited availability of care providers in developing countries, and high costs associated with end-of-life care services. However, the initiation of hospice services in developing countries is anticipated to boost the market growth rate during the forecast period. For instance, in September 2024, Bangalore Baptist Hospital, India launched a hospice in Devanahalli specifically for terminal cancer patients. The facility aims to provide comprehensive palliative care, focusing on enhancing the quality of life and ensuring patients experience as little pain as possible during their final stages of life.
Growing Geriatric Population to Push the Hospice Market Demand
The increasing geriatric population dominates the growth of the global hospice market. The aging population worldwide has led to a fast-increasing demand for specialized hospice care. Elderly people generally experience chronic illness and complex health needs, therefore, they need hospice service as an option to improve the quality of their remaining life during the final stage. The acceptance and understanding of hospice care is becoming more familiar to people, leading to market growth. Families are beginning to appreciate the more supportive advantage of palliative care, encouraging advanced talks with patients about end-of-life options. This trend goes hand-in-glove with healthcare policy stresses toward home-based care and integrated models of service. As the geriatric population expands, the hospice market will continue expanding while the evolution of healthcare dictates more focused, empathetic attention toward the individual patient. For instance, according to United Nations Population Fund data, the global share of people aged 65 and over has nearly doubled from 5.5% in 1974 to 10.3% in 2024. This figure is projected to reach 20.7% by 2074, with the number of those aged 80 and over more than tripling. Currently, developed countries have the highest proportion of elderly populations, while developing countries are typically witnessing rapid population aging. Global population aging is linked to improvements in average life expectancy and declines in fertility rates in many countries.
Piling Chronic Disease Burden to Drive Market Growth
The burden of chronic diseases, especially cancer, would be the leading cause behind the hospice market growth. Due to increasing trends in the rate of cancer incidence worldwide, more patients and their families are searching for specialized care at the end, which is more directed toward comfort and quality of life at the end rather than curative efforts. Hospice care is a crucial service provided with end-of-life support due to chronic terminal illnesses such as advanced cancer. It includes adequate pain management and emotional guidance through the complications of the disease. Hospice services enable families to make well-informed care decisions, ensuring dignity and personal preferences. Increased awareness of the benefits of hospice services translates to more health providers encouraging such services to patients. This growing burden of chronic disease is likely to accelerate the growth rate of the hospice market, enhanced by the rising trend toward comprehensive caring treatment of cancer patients and other people with severe diseases. For instance, according to WHO, lung cancer was the leading cause of cancer death with 1.8 million deaths, which is 18.7% of the total cancer deaths, followed by colorectal cancer with 900,000 deaths (9.3%), liver cancer with 760,000 deaths (7.8%), breast cancer with 670,000 deaths (6.9%), and stomach cancer with 660,000 deaths (6.8%). Such high statistics of terminal cancer supports the growth of the hospice care market.
Nursing Services Segment to Dominate the Hospice Market Share
The nursing services segment dominates the hospice market due to the critical role of nurses in ensuring comprehensive care through end-of-life delivery. A trained hospice nurse provides essential services, including pain management and symptom control, alongside and offering them comfort and emotional support for patient care in their desired environment. Their expertise helps assess patient needs, coordinates with the interdisciplinary team, and educates families concerning the care process. Apart from this, the training and qualifications of hospice nurses advance the quality of care service and, thus, help maintain market dominance of the segment. This approach to skilled care with compassion ensures appropriate patient care. For instance, CareAcademy.co, Inc. launched a new hospice care curriculum aimed to enhance training for post-acute care providers across the nation. This initiative expands their educational offerings, focusing on improving the quality of care for patients in hospice settings. The curriculum is designed to equip caregivers with essential skills and knowledge for effective patient support during critical end-of-life stages.
North America to Dominate the Global Hospice Market Share
North America is anticipated to dominate the hospice market due to several key factors, such as the development of healthcare infrastructure. Numerous hospice care service providers in this region offer special types of care. To the highest extent, people prefer comfort and quality of life for their loved ones. People prefer comfort and quality of life to the highest extent for their loved ones. With more hospices qualified under Medicare and Medicaid, hospice services are becoming more accessible and inexpensive. An aging population in North America, coupled with continuously rising chronic illnesses, further fuels the demand for hospice care. Continuing education and training programs also improve the quality and availability of hospice services, strengthening their North America's market position. New centers opening in the region further strengthen the growth rate, for instance, in August 2024, the New York State Department of Health launched the Center for Hospice and Palliative Care, aimed at improving access to end-of-life services. The center will focus on eliminating healthcare disparities and enhancing care quality. Key initiatives include developing the best practices, stakeholder education, and a public campaign to promote advanced care planning and understanding of hospice services.
Future Market Scenario (2024 - 2031F)
Integrating AI into hospice care will transform the industry into something much more efficient, with better patient outcomes and streamlined operations. Predictive analytics would be the core of AI technologies to monitor the condition in real-time, providing timely interventions. It is particularly important in hospice settings because patient health situations can change instantly. For example, Radial Analytics, Inc.'s Smart Hospice tool, launched in February 2024, proved invaluable in identifying those patients who may need palliative care but go otherwise unidentified. According to the pilot at Mass General Brigham, 9% of the patients received recommended consultations. Many of them would not have been found but for this AI-driven tool. Additionally, AI will tailor the care plans according to the respective history of each patient, making it improve the quality of life for each patient under hospice care. This happens by having healthcare providers automate the administrative tasks so that they pay more attention to empathetic touches with the patients, altering the end experience for the patients and families entirely.
Key Players Landscape and Outlook
The hospice market is quite fragmented, with many care providers ranging from individual entities to organized institutes, such as corporate companies, hospitals, nursing homes, and many others. The market is highly tilted towards North America and Europe, while in other regions, the market is not very well defined and is still in the budding phase. Some recent market activities include acquisitions and business expansion agreements between notable market players.
In September 2024, BrightSpring Health Services (Res-Care, Inc.) acquired Haven Palliative Care, LLC., a Florida-based provider of comprehensive hospice care, effective September 1, 2024. This acquisition expands BrightSpring's hospice services into Florida, covering 18 counties. The total deal is valued at USD 60 million, comprising USD 15 million in cash, USD 30 million in equity, and a USD 15 million seller note due in 2028. BrightSpring aims to enhance compassionate care for high-need Floridians during critical times, leveraging its top-rated hospice service quality.
In June 2023, Amedisys, Inc. and Optum, Inc. announced a definitive agreement to combine, with Optum acquiring Amedisys for USD 101 per share in an all-cash transaction. This merger aims to enhance value-based care for patients and their families, leveraging both organizations' strengths in home health, hospice, and high-acuity services. The agreement is subject to shareholder and regulatory approvals and customary closing conditions. This strategic move is designed to improve patient outcomes and streamline care delivery across the healthcare continuum.