Retirement Communities Global Market Opportunities And Strategies To 2030, By Community Type

Executive Summary

This report describes and explains the retirement communities market and covers 2015 to 2020, termed the historic period, and 2020 to 2025 termed the forecast period, along with further forecasts for the period 2025-2030. The report evaluates the market across each region and for the major economies within each region.

The retirement communities market reached a value of nearly $189.3 billion in 2020, having increased at a compound annual growth rate (CAGR) of 0.1% since 2015. The market is expected to grow from $189.3 billion in 2020 to $285.1 billion in 2025 at a rate of 8.5%. The market is then expected to grow at a CAGR of 5.6% from 2025 and reach $374.7 billion in 2030.

Growth in the historic period resulted from aging population, emerging markets growth, changes in social patterns, life expectancy and health insurance reforms.
Going forward, increase in chronic diseases and disabilities, aging populations, increasing healthcare access, economic growth and technology will drive the growth. Factors that could hinder the growth of the retirement communities market in the future include bankruptcy, shortages of skilled human resources and insufficient public health insurance coverage

The retirement communities market is segmented by community type into assisted living facilities with nursing care, assisted living facilities, continuing care retirement communities and rest homes. The continuing care retirement communities market was the largest segment of the retirement communities market segmented by community type, accounting for 47.7% of the total in 2020. Going forward, the assisted living facilities market is expected to be the fastest growing segment in the retirement communities market segmented by community type, at a CAGR of 10.54% during 2020-2025.

Western Europe was the largest region in the retirement communities market, accounting for 42.4% of the total in 2020. It was followed by North America, and then the other regions. Going forward, the fastest-growing regions in the retirement communities market will be Asia Pacific, and, Africa where growth will be at CAGRs of 11.2% and 10.5% respectively. These will be followed by Middle East, and Western Europe, where the markets are expected to grow at CAGRs of 8.4% and 8.3% respectively.

COVID-19 is particularly concerning for older persons with underlying health conditions, regardless of their living situation. Those with greater frailty are generally at greater risk. The virus also spreads quickly in dense communities with regular activities, communal meals and/or gatherings and thus these underlying factors presents a major health risk in senior communities where there are numerous residents with fragile immune systems. The virus has exerted a huge strain on operators relating to operational pressures and challenges in managing anxiety, stress, numbers of staff off work self-isolating or shielding, staff burnout, staff shortages, managing expectations, lack of availability of PPE, and striving to protect health and well-being.

The global retirement community market is highly fragmented, with large number of small players. The top ten players of the market constitute to only 6.48% of the market in 2020. However, this is expected to change during the forecast period as majority of the players are trying to grow inorganically by acquiring smaller companies to expand their geographical outreach. Brookdale Senior Living Inc. was the largest competitor with 1.33% of the market, followed by Sunrise Senior Living with 1.32%, Atria Senior Living Group with 0.85%, Life Care Centers of America with 0.79%, Erickson Living with 0.55%, Holiday Retirement with 0.53%, Senior Lifestyle Corp. with 0.42%, Affinity Living Group with 0.32%, HC-One Ltd with 0.20%, Covenant Retire Communities Inc. with 0.17%.

The top opportunities in the retirement communities market segmented by community type will arise in the continuing care retirement communities segment, which will gain $32.0 billion of global annual sales by 2025. The retirement communities market size will gain the most in the USA at $17.7 billion.

Market-trend-based strategies for the retirement communities market include investing in wearable technologies and advanced communication systems to improve the quality of care, adopting big data technologies and collaborating with analytics companies to gain critical insights on seniors’ health, consider implementing telehealth technologies to remotely care and improve the quality of care offered to senior citizens, develop customized services to provide individualized care to senior residents with complicated health issues, exploring eco-friendly alternatives to minimize carbon emissions and operational expenditure, implementing barrier free design in retirement communities to attract customers, adopting smart home technology to provide enhanced quality of life to their residents, adopting electronic health records to safely store and streamline contact with residents and have timely access to the medical history of the residents and focusing on mergers and acquisitions as a strategy to enter new markets, expand service offerings, and increase revenue.

Player-adopted strategies in the retirement communities market include increasing value for shareholders which also includes divesting of portfolio for retaining its position in the market, integration of advanced technology and launching of new communities, strengthening business by strategic acquisitions and launching new improvement programs.

To take advantage of the opportunities, the publisher recommends the retirement communities’ companies to focus on adoption of technology to serve the older population, expanding in countries with large geriatric population, focus on expanding through collaborations, competitive pricing, leverage social media to maximize reach, increase visibility through a high-performance website and assuring the quality of the staff.

Companies Mentioned

• Brookdale Senior Living Inc.
• Sunrise Senior Living
• Atria Senior Living Group
• Life Care Centers of America
• Erickson Living
• Holiday Retirement
• Senior Lifestyle Corp.
• Affinity Living Group
• HC-One Ltd.
• Covenant Retire Communities Inc.

Methodology