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Residential Nursing Care in Germany - Market Research Report (2014-2029)

Clara-Camille Schneider Clara-Camille Schneider Frankfurt, Germany Last Updated: November 2024 WZ Q87.10DE

Revenue

€13.2bn

2024

€13.2bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

253k

Businesses

804

Wages

€X.Xbn

Residential Nursing Care in Germany industry analysis

Vaccinations and compliance with social distancing and hygiene rules have significantly reduced the risk of coronavirus-related deaths in care homes during the coronavirus pandemic. As a result, the number of people moving from home to residential care has risen again. The additional expenditure, for example for hygiene concepts and staff, and the simultaneous reduction in income, for example due to unoccupied care home places, put a strain on the financial situation of care homes. The Covid-19 Hospital Relief Act (Covid-19-Krankenhausentlastungsgesetz), which enabled care facilities to be fully reimbursed for all extraordinary expenses and reduced income caused by the pandemic as part of the care rescue package, provided a remedy. Despite the government support, industry turnover fell by an average of 1.9% per year between 2019 and 2024.Care homes are under economic pressure. In addition to the after-effects of the coronavirus pandemic, high energy costs and inflation as well as rising wages have been additional cost drivers in recent years. In addition, social welfare providers only settle uncovered care home costs after long processing times. The cost increases, which cannot be fully refinanced, have led to the closure of numerous care homes in 2023. Cost pressure and the worsening staff shortage are also expected to lead to occupancy freezes and capacity cuts in 2024 and result in further closures. A decline in turnover of 0.1% compared to the previous year and total turnover of 13.2 billion euros is therefore expected for 2024.Due to demographic change and the increasing life expectancy of the population, the care market is characterised by stable growth. The rise in the number of households with people over the age of 65 and the increasing number of people in need of care in Germany are ensuring a constant demand for care places and will favour a positive sales trend in the sector. This is another reason why sales are expected to grow by an average of 2.6% per year until 2029. Total turnover is expected to amount to around 15 billion euros in 2029. However, the increasing number of people in need of care will be offset by a decreasing number of qualified nursing staff, which could widen the care gap. There is already a shortage of skilled workers in the industry today, which will worsen in the coming years, as can be seen from the current further decline in the number of nursing trainees.

Trends and Insights

  • The worsening shortage of skilled workers in the care sector is leading to the increased use of temporary staff Care facilities can use temporary staff to respond to higher occupancy rates and compensate for shortfalls in their own permanent staff, but pay comparatively high wages for temporary workers
  • Inpatient long-term care is the highest-revenue service in the industry. Care homes provide care for people who are no longer able to look after themselves. This service is the most expensive form of care.
  • The distribution of care homes in Germany is linked to the population distribution. The four western federal states account for the largest share of homes, employees and available places. The supply of nursing home places is particularly high in North Rhine-Westphalia.
  • In recent years, the number of companies operating on the market has decreased on average. Strong price pressure, a shortage of skilled labour and the increasing demands of residents mean that small companies are forced to close or are taken over by larger industry players.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.9 % over the past five years, to reach an estimated €13.2bn in 2024.

Trends and Insights

Rising costs and long processing times at social welfare offices jeopardise the profitability of care homes

  • Care homes in Germany are affected by long processing times when applying for social assistance and when the corresponding decision is issued.
  • Additional trends and insights available with purchase
Residential Nursing Care in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

The growth prospects in the sector are attracting private investors and increasing competition

  • Demographic change is increasing demand for care home places and offers the industry opportunities for growth. However, the relatively high profit margin will increase competition.

Biggest companies in the Residential Nursing Care in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Korian Gruppe
1,196.5
Cidron Atrium SE
1,119.5
Emeis Gruppe
1,037.8

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Residential Nursing Care in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Permanent care, Day care and Short-term care. Permanent care is the largest segment of the Residential Nursing Care in Germany.

Trends and Insights

Long-term care is particularly expensive

  • Long-term inpatient care is the industry's top-selling service. Nursing homes provide care for people who are no longer able to look after themselves or for whom relatives are unable to provide the necessary support.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Nursing homes are facilities that provide comprehensive care and support for the chronically ill and people in need of care. With their layout, equipment and staffing, they are designed to maintain and, where possible, strengthen the remaining strength and abilities of the people concerned with medical assistance. Outpatient care, retirement homes and homes for the disabled are not part of this sector.

What's included in this industry?

Permanent careDay careShort-term careNight care

Companies

Korian GruppeCidron Atrium SEEmeis Gruppe

Purchase this report to view all 7 major companies in this industry.

Related Terms

OUTPATIENT CARENUMBER OF BEDSIN NEED OF CARE

Industry Code

WZ 2008

WZ 87.10 - Residential Nursing Care in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The worsening shortage of skilled workers in the care sector is leading to the increased use of temporary staff Care facilities can use temporary staff to respond to higher oc...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Inpatient long-term care is the highest-revenue service in the industry. Care homes provide care for people who are no longer able to look after themselves. This service is t...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The distribution of care homes in Germany is linked to the population distribution. The four western federal states account for the largest share of homes, employees and avai...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

In recent years, the number of companies operating on the market has decreased on average. Strong price pressure, a shortage of skilled labour and the increasing demands of r...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The Korian Group has the highest market share in the care home sector. In addition to 50 outpatient care services, the company operates around 230 inpatient facilities in Ger...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Korian Gruppe's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Cidron Atrium SE's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Emeis Gruppe's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • Description and key data for Korian Gruppe, and factors influencing its performance in the industry
  • Description and key data for Cidron Atrium SE, and factors influencing its performance in the industry
  • Description and key data for Emeis Gruppe, and factors influencing its performance in the industry
  • Description, key data and performance trends for 4 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The Long-Term Care Insurance Act regulates the new authorisation and establishment of nursing homes. It also regulates the entitlements of people in need of care who are assi...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Inflation-related additional costs weigh on profits and lead to a higher risk of insolvency. The earnings situation of care homes is burdened by expenditure on hygiene precau...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Residential Nursing Care industry in Germany in 2024?

The market size of the Residential Nursing Care industry in Germany is €13.2bn in 2024.

How many businesses are there in the Residential Nursing Care in Germany industry in 2024?

There are 804 businesses in the Residential Nursing Care industry in Germany, which has declined at a CAGR of 1.4 % between 2019 and 2024.

Has the Residential Nursing Care industry in Germany grown or declined over the past 5 years?

The market size of the Residential Nursing Care industry in Germany has been declining at a CAGR of 1.9 % between 2019 and 2024.

What is the forecast growth of the Residential Nursing Care industry in Germany over the next 5 years?

Over the next five years, the Residential Nursing Care industry in Germany is expected to grow.

What are the biggest companies in the Residential Nursing Care market in Germany?

The biggest companies operating in the Residential Nursing Care market in Germany are Korian Gruppe, Cidron Atrium SE and Emeis Gruppe

What does the Residential Nursing Care in Germany include?

Permanent care and Day care are part of the Residential Nursing Care industry.

Which companies have the highest market share in the Residential Nursing Care in Germany?

The company holding the most market share in Germany is Korian Gruppe.

How competitive is the Residential Nursing Care industry in Germany?

The level of competition is high and increasing in the Residential Nursing Care industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Retirement Homes in Germany
  • Social Services for the Elderly & People with Disabilities in Germany

Complementors

  • Hospitals in Germany
  • General Medical Practices in Germany
  • Specialist Medical Practices in Germany

International industries

  • Nursing Care Facilities in the US
  • Day Care in Canada
  • Aged Care Residential Services in Australia
  • Aged Care Residential Services in New Zealand
  • Residential Nursing Care in the UK

View all industries in Germany

Methodology

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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