The global adult day care market size was estimated at around USD 16.56 billion in 2022 and it is projected to hit around USD 27.31 billion by 2032, growing at a CAGR of 5.13% from 2023 to 2032. The adult day care market in the United States was accounted for USD 6.9 billion in 2022.
Key Pointers
Report Scope of the Adult Day Care Market
| Report Coverage | Details |
| Revenue Share of North America in 2022 | 46% |
| Revenue Forecast by 2032 | USD 27.31 billion |
| Growth Rate from 2023 to 2032 | CAGR of 5.13% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Companies Covered | Active Day/Senior Care, Inc.; Adult Life Programs, Inc.; Ascension Living Saint Joseph Village Adult Day Center; CCACC Joyful Day Care Center; Age UK; Care Futures; GerHogar; Deutsches Altenheim; Badisa; Grace Adult Health Care |
The growing geriatric population globally and the demand for transitional care among elderly and Alzheimer's patients are expected to drive the growth of the market over the forecast period. According to the World Population Ageing 2020 report by United Nations, in 2020, there were around 727 million people aged 65 years and above globally. The major economies and developing countries are rapidly aging. This demographic shift has increased the demand for elderly care services.
Moreover, with the shift from traditional family structure to nuclear families, majorly in the Asia Pacific countries, many elderly people are living alone or with limited support. Urbanization has promoted the nucleation of families and has substantially decreased care and support for the elderly population. However, Adult Day Care (ADC) centers offer opportunities to improve social support and contact with such individuals to provide daily living support, nutritional support, and mental health.
Furthermore, the demand for transitional care is rising globally among patients with Alzheimer's and developmental disabilities. Hence, these centers are offering more and more disease-specific programs to cater to the demand of these patient cohorts with an increased focus on health and prevention maintenance. For instance, according to the article published in AgingInPlace.org in April 2023, in the U.S., around 90% of the centers offer cognitive stimulation programs, around 80% offer memory training programs, and around 75% and above offer educational programs for such a population.
The funding for ADC varies from country and is complex in nature. The majority of service providers rely on a combination of public and private funding, donations, and grants to cover the cost. For instance, according to the article published in the National Library of Medicine in July 2021, around 65% of the cost is covered by Medicaid in the U.S. This is to divert the expenditure from expensive nursing homes to home- and community-based care.
The COVID-19 pandemic adversely impacted the market due to the suspension of operations in the early phase of the pandemic. Traveling and physical restrictions resulted in a decrease in visits as these populations were at high risk. Hence, many centers closed their operations in 2020. For instance, according to a survey of 30 ADC centers in 2020 published by the National Library of Medicine, around 95.5% of the facilities were closed due to the traveling and physical restrictions led due to the pandemic. However, in 2021, with the ease of restrictions and policies led down by the government for the prevention of the spread of the virus, many facilities started providing services. For instance, in the UK, the guidance for regular COVID-19 testing for DC was published by the UK Health Security Agency. The guidance mandated daily testing of staff using rapid lateral flow test (LFT) two days a week for the service users.
Funding Insights
The public segment dominated the market and accounted for the largest revenue share of 73% in 2022. The high share of the segment can be attributed to the growing investment by the government to increase the adoption of institutional care for patients with special needs. According to the BMC Journal, in 2018, around 87.7% of the municipalities in Norway offered ADC services for dementia patients. Based on the funding, the market is bifurcated into public and private.
Moreover, some governments have mandated social organizations to offer different types of ADC to their population suffering from dementia. For instance, since 2020, all municipalities in Norway have been mandated to offer ADC to dementia patients. Many offer variations in the type of services, including Farm-based daycare that provide outdoor activities rather than regular daycare.
However, the private segment is expected to witness fastest growth over the forecast period due to the growing demand for care services and the market's high potential with the lower number of private players. For instance, in 2022, Town Square Sandy Springs opened an innovative adult day care center in Atlanta, U.S. offering cognitive and memory care services and experiential adult day enrichment services.
Services Insights
The specialized day care services segment dominated the market with the largest revenue share of 39% in 2022 and is expected to witness the fastest growth over the forecast period. This can be attributed to the growing demand for ADC among Alzheimer's and dementia patients. According to the article published in the BMC Journal in 2022, day care is an important aspect of community care for dementia patients, and around 10% to 18% of patients with dementia are utilizing these services globally. Moreover, in Ireland, around 13% of the expenditure for community care for dementia is spent on ADC. Based on the services, the market is segmented into adult social day services, adult day healthcare services, and specialized day care services.
Moreover, many providers are launching specialized centers only offering services for patients with special needs, such as dementia patients. For instance, in August 2022, the Devika Dementia Day Center was launched at Castor Lodge Care Home in Petersburg, U.S. The center offers services to mid- to late-stage dementia patients to assist with activities of daily living.
Adult day healthcare services are expected to grow significantly over the forecast period. These are medical services licensed by countries, including nursing services, intensive health services, therapeutic services, therapy services, and other medical services. Hence, many such service providers are expanding their business to gain a competitive edge in the market. For instance, in February 2023, Rainbow Adult Day Health Care opened a second facility at the public housing complex, Quincy location.
Regional Insights
North America region dominated the market with the largest revenue share of 46% in 2022. ADC programs are a growing source of long-term care, and the number of centers offering services is rapidly increasing in the region. According to the National Adult Day Services Association (NADSA), in 2022, there were more than 7,500 ADC centers in the U.S., from around 5,000 in 2020.
Asia Pacific region is expected to witness the fastest growth over the forecast period. This can be attributed to the growing proportion of the elderly population in the region which is at greater risk of developing chronic disease and experiencing a decline in functional and mental capacities. For instance, according to an article published in the National Library of Medicine, ADC services are popular among the disabled population in Japan, and around 1.13 million people visited these centers in 2018.
Europe held significant market share in 2022. The rise in the aging population in the region is expected to drive the market during the forecast period. For instance, according to the 2021 Long-term care report, the potential individual requiring long-term care in the EU is anticipated to reach 38.1 million in 2050 from 30.8 million in 2019 owing to the aging population. With the aging population, the mental and physical disability prevalence increases, which leads to dependency on aid for instrumental and/or activities for daily living. This is expected to contribute to the growth of the market over the forecast period.
Adult Day Care Market Segmentations:
By Funding
By Services
By Regional
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Adult Day Care Market
5.1. COVID-19 Landscape: Adult Day Care Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Adult Day Care Market, By Funding
8.1. Adult Day Care Market, by Funding, 2023-2032
8.1.1. Private
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Public
8.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Adult Day Care Market, By Services
9.1. Adult Day Care Market, by Services, 2023-2032
9.1.1. Adult Social Day Services
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Adult Day Healthcare Services
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. Specialized Day Care Services
9.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Adult Day Care Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Forecast, by Funding (2020-2032)
10.1.2. Market Revenue and Forecast, by Services (2020-2032)
10.1.3. U.S.
10.1.3.1. Market Revenue and Forecast, by Funding (2020-2032)
10.1.3.2. Market Revenue and Forecast, by Services (2020-2032)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Forecast, by Funding (2020-2032)
10.1.4.2. Market Revenue and Forecast, by Services (2020-2032)
10.2. Europe
10.2.1. Market Revenue and Forecast, by Funding (2020-2032)
10.2.2. Market Revenue and Forecast, by Services (2020-2032)
10.2.3. UK
10.2.3.1. Market Revenue and Forecast, by Funding (2020-2032)
10.2.3.2. Market Revenue and Forecast, by Services (2020-2032)
10.2.4. Germany
10.2.4.1. Market Revenue and Forecast, by Funding (2020-2032)
10.2.4.2. Market Revenue and Forecast, by Services (2020-2032)
10.2.5. France
10.2.5.1. Market Revenue and Forecast, by Funding (2020-2032)
10.2.5.2. Market Revenue and Forecast, by Services (2020-2032)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Forecast, by Funding (2020-2032)
10.2.6.2. Market Revenue and Forecast, by Services (2020-2032)
10.3. APAC
10.3.1. Market Revenue and Forecast, by Funding (2020-2032)
10.3.2. Market Revenue and Forecast, by Services (2020-2032)
10.3.3. India
10.3.3.1. Market Revenue and Forecast, by Funding (2020-2032)
10.3.3.2. Market Revenue and Forecast, by Services (2020-2032)
10.3.4. China
10.3.4.1. Market Revenue and Forecast, by Funding (2020-2032)
10.3.4.2. Market Revenue and Forecast, by Services (2020-2032)
10.3.5. Japan
10.3.5.1. Market Revenue and Forecast, by Funding (2020-2032)
10.3.5.2. Market Revenue and Forecast, by Services (2020-2032)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Forecast, by Funding (2020-2032)
10.3.6.2. Market Revenue and Forecast, by Services (2020-2032)
10.4. MEA
10.4.1. Market Revenue and Forecast, by Funding (2020-2032)
10.4.2. Market Revenue and Forecast, by Services (2020-2032)
10.4.3. GCC
10.4.3.1. Market Revenue and Forecast, by Funding (2020-2032)
10.4.3.2. Market Revenue and Forecast, by Services (2020-2032)
10.4.4. North Africa
10.4.4.1. Market Revenue and Forecast, by Funding (2020-2032)
10.4.4.2. Market Revenue and Forecast, by Services (2020-2032)
10.4.5. South Africa
10.4.5.1. Market Revenue and Forecast, by Funding (2020-2032)
10.4.5.2. Market Revenue and Forecast, by Services (2020-2032)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Forecast, by Funding (2020-2032)
10.4.6.2. Market Revenue and Forecast, by Services (2020-2032)
10.5. Latin America
10.5.1. Market Revenue and Forecast, by Funding (2020-2032)
10.5.2. Market Revenue and Forecast, by Services (2020-2032)
10.5.3. Brazil
10.5.3.1. Market Revenue and Forecast, by Funding (2020-2032)
10.5.3.2. Market Revenue and Forecast, by Services (2020-2032)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Forecast, by Funding (2020-2032)
10.5.4.2. Market Revenue and Forecast, by Services (2020-2032)
Chapter 11. Company Profiles
11.1. Active Day/Senior Care, Inc.
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. Adult Life Programs, Inc.
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. Ascension Living Saint Joseph Village Adult Day Center
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. CCACC Joyful Day Care Center
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. LTE Scientific
11.5. Age UK
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. Care Futures
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. GerHogar
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. Deutsches Altenheim
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. Badisa
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
11.10. Grace Adult Health Care
11.10.1. Company Overview
11.10.2. Product Offerings
11.10.3. Financial Performance
11.10.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers