Post-acute Care (PAC) Market Size

Post-acute Care (PAC) Market Analysis

The Post-Acute Care Market size is estimated at USD 0.85 trillion in 2024, and is expected to reach USD 1.19 trillion by 2029, growing at a CAGR of 6.96% during the forecast period (2024-2029).

Factors such as the rising prevalence of chronic diseases, technological advancements in medical technology, and the growing geriatric population are expected to boost the growth of the post-acute care (PAC) market over the forecast period.

The market is primarily driven by the increasing prevalence of chronic diseases and a growing elderly population. For instance, updated data published by the International Diabetes Federation in 2024 indicates that approximately 643 million individuals are projected to have diabetes by 2030 worldwide, which is expected to reach an estimated 783 million by 2040. Given that diabetes can result in complications like cardiovascular diseases, neuropathy, and kidney problems, there is a consistent demand for post-acute care, monitoring, and rehabilitation services. This ongoing need is expected to boost the market's growth during the forecast period.

Furthermore, as the number of surgical procedures rises, the need for vigilant post-acute care to monitor potential complications, like infections or blood clots, increases. This heightened demand is driving the market's growth. For instance, a January 2023 article published in the Journal of Orthopedic Science reported that about 14,986 knee arthroplasty procedures were projected to be performed in the population aged 75 years and older in Japan by 2030, followed by 6,942 procedures for those aged between 65 and 74 years. In addition, about 4,052 knee arthroplasty procedures were expected to be performed in the population aged 40-64 years in Japan by 2030. These figures indicate a robust upward trajectory for knee arthroplasties in Japan, with most age groups expected to see continued growth over the next decade. Such trends highlight an escalating need for intensive post-surgery rehabilitation, emphasizing the increasing demand for physical and occupational therapy. Consequently, this surge in demand is poised to bolster the market's growth during the forecast period.

Various studies have evaluated the evolution of the post-acute care (PAC) system in China over the past decades. For instance, an article published in the Journal of the American Medical Directors Association in January 2024 noted that China has bolstered its PAC system by enhancing rehabilitation and nursing infrastructure, establishing tiered rehabilitation networks, and adopting innovative payment methods. Also, the increasing elderly population in China, who are more prone to multiple health issues, longer recovery times post-illness, and increased risks of readmission, disability, and mortality, requires the need for long-term care. These factors are expected to heighten the demand for a robust PAC system, suggesting significant growth in the market during the forecast period.

Moreover, various forms and combinations of PAC services have been deployed to stabilize patient's health post-acute hospitalization, promote independent living, curtail unnecessary extended hospital stays, and facilitate smooth transitions between different care levels. These efforts are expected to drive the market's growth during the forecast period. For instance, in April 2024, Netsmart unveiled the Netsmart Marketplace, the largest network of technology and service organizations. This platform offers a wide range of integrated solutions tailored to the evolving demands of value-based care delivery. Through this innovative network, providers in human services, post-acute care, and geriatrics can streamline operations and elevate consumer care by integrating complementary technologies and services. Hence, this is anticipated to have a positive impact on the market's growth.

Therefore, owing to factors such as the rising burden of diabetes and surgical procedures, increasing adoption of post-acute care systems, and launches of post-acute care services, the studied market is expected to grow during the forecast period. However, the lack of skilled personnel, regulatory policies, and reimbursement issues in developing countries are likely to restrict the market's growth during the forecast period.