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Aged Care Residential Services in Australia Industry Data and Analysis
On the basis of revenue growth rates, the Aged Care Residential Services industry has posted healthy growth in recent years, supported by a significant uplift in government funding. However, this uplift in funding has been driven by financial sustainability concerns, as a notable proportion of industry providers have failed to post a profit. Elevated funding has also arisen from the need for improved aged care services following a damning Royal Commission review. Despite earlier government efforts to implement reforms designed to create a more consumer-driven, market-based system, concerns about the quality of care given by aged care residential providers have dominated the industry's operating landscape, with the current aged care legislation deemed not fit for purpose. The pandemic added to operators' woes by keeping aged care homes firmly in the spotlight. In recent years, higher compliance and operating costs, historically low occupancy rates and staffing shortages have added to the industry's challenges. These factors have contributed to the consolidation process currently taking place within the aged care sector as smaller providers are forced to close.
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What's included in this industry analysis
IBISWorld's research coverage on the Aged Care Residential Services industry in Australia includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released May 2025.
About this industry
What's this industry report about?
The Aged Care Residential Services industry in Australia operates under the ANZSIC industry code Q8601. Industry establishments operate long-term aged care accommodation facilities, including government-approved residential aged care centres and retirement villages. Many industry establishments provide residential aged care facilities that service the entire spectrum of dependency, from independent living units and low-care options through to high-care and specialist care options like dementia care, in line with ageing in place principles. Related terms covered in the Aged Care Residential Services industry in Australia include aged care funding instrument (acfi), personal-care assistants, respite care, aged care approvals round (acar), higher accommodation supplement, transition care programme and ageing in place.
What's included in this industry?
Products and services covered in Aged Care Residential Services industry in Australia include Care services, Hotel and lifestyle services and Accommodation services.
What companies are included in this industry?
Companies covered in the Aged Care Residential Services industry in Australia include Opal HealthCare, Bolton Clarke and Regis Healthcare.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Aged Care Residential Services industry in Australia.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Aged Care Residential Services industry in Australia.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Aged Care Residential Services industry in Australia.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Aged Care Residential Services industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Aged Care Residential Services industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Aged Care Residential Services industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Aged Care Residential Services industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Aged Care Residential Services industry in Australia.
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Frequently Asked Questions
What is the market size of the Aged Care Residential Services industry in Australia in 2026?
The market size of the Aged Care Residential Services industry in Australia is $38.7bn in 2026.
How many businesses are there in the Aged Care Residential Services industry in Australia in 2025?
There are 1,887 businesses in the Aged Care Residential Services industry in Australia, which has grown at a CAGR of 0.9 % between 2020 and 2025.
How may import tariffs affect the Aged Care Residential Services industry in Australia?
The Aged Care Residential Services industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Aged Care Residential Services industry in Australia?
The Aged Care Residential Services industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Aged Care Residential Services industry in Australia grown or declined over the past 5 years?
The market size of the Aged Care Residential Services industry in Australia has been growing at a CAGR of 5.4 % between 2020 and 2025.
What is the forecast growth of the Aged Care Residential Services industry in Australia over the next 5 years?
Over the next five years, the Aged Care Residential Services industry in Australia is expected to grow.
What are the biggest companies in the Aged Care Residential Services industry in Australia?
The biggest companies operating in the Aged Care Residential Services industry in Australia are Opal HealthCare, Bolton Clarke and Regis Healthcare
What does the Aged Care Residential Services industry in Australia include?
Care services and Hotel and lifestyle services are part of the Aged Care Residential Services industry in Australia.
Which companies have the highest market share in the Aged Care Residential Services industry in Australia?
The company holding the most market share in the Aged Care Residential Services industry in Australia is Opal HealthCare.
How competitive is the Aged Care Residential Services industry in Australia?
The level of competition is low and increasing in the Aged Care Residential Services industry in Australia.
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