In good hands: An aging population and greater healthcare coverage will support growth

The Adult Day Care industry has performed well over the past five years. The steadily aging population and expensive alternative long-term care options fueled demand for industry services. Growth slowed over the period, however, as state and local governments experienced budget shortfall stemming from the economic contraction, limiting growth through 2013. As the economy eventually recovered and disposable income increased, the industry began to rebound. Over the next five years, the number of people aged 65 and older in the United States is projected to continue expanding as a share of the total population. As the population ages, the prevalence of Alzheimer's and other physical and mental diseases will increase, bolstering demand for adult day care services...purchase to read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 11-16
4.1%
Forecast Growth 16-21
Profit
Employment
183,858
Businesses
10,441
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The prevalence of physical and mental diseases will increase, raising demand for industry services
  • Medicaid has expanded, enabling more individuals to obtain funding for industry services
  • Aging baby boomers will increase demand for adult day care services
  • Industry Report - Industry Investment Chapter

    The Adult Day Care industry has a low level of capital intensity. In 2016, for every $1.00 spent on wages, industry operators typically invested just $0.05 in capital. Capital intensity has remained relatively constant over the past five years; in 2011, for every $1.00 spent on wages, the average industry operator allocated just over $0.05 to capital. Capital investment is primarily in central facilities, company vehicles, computer, software and basic medical equipment. On average, central facilities are typically between 1,000 to 5,000 square feet. Investment in company vehicles is becoming more common, given that transportation services are highly valued among caregivers...purchase to read more.

    Additional Insights for the Adult Day Care Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Adult Day Care Industry are

  • Proximity to key markets
  • Access to a highly skilled workforce
  • Having an integrated operation
  • IBISWorld analysts also discuss how external factors such as Federal funding for Medicare and Medicaid and Per capita disposable income in the Adult Day Care industry impact industry performance..

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    What's in this report

    What is the Adult Day Care Industry?

    This industry provides social and basic health assistance, including transportation, meals, personal hygiene and therapeutic activities, to the elderly and individuals with mental or physical disabilities. Services are typically provided during normal business hours through adult care centers. This industry does not include home care.

    Industry Products
  • Social model
  • Medical model
  • Social and medical model
  • Industry Activities
  • Care planning services
  • Daily living assistance
  • Nursing and health services
  • Therapeutic services
  • Meal services
  • Transportation services
  • Social activities
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for Medicare and Medicaid
  • Per capita disposable income
  • Number of adults aged 65 and older
  • Number of people with private health insurance

  • Current Performance
  • Aging population boosts demand
  • Medicaid growth
  • New companies steadily enter
  • Chart: Revenue Growth

  • Industry Outlook
  • Aging population boosts demand
  • Medicaid growth
  • New companies steadily enter
  • Table: Adult Day Care Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Adult Day Care Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Drug, Cosmetic & Toiletry Wholesaling
  • Grocery Wholesaling
  • Janitorial Services
  • Medical Supplies Wholesaling
  • Public Administration

  • Products & Services
  • Social and medical model
  • Social model
  • Medical model
  • Chart: Adult Day Care Industry Products and Services Segmentation

  • Demand Determinants
  • Age
  • Illness
  • Funding
  • Economic trends

  • Major Markets
  • Adults 65 years and older
  • Adults 41-64 years old
  • Adults younger than 41
  • Chart: Major Market Segmentation for the Adult Day Care Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Adult Day Care

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Adult Day Care Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Adult Day Care Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Adult Day Care Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of adults aged 65 and older (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dementia
  • A loss of brain function that occurs with certain diseases, affecting memory, thinking, language, judgment and behavior.
  • Long-Term Care (Ltc)
  • Medical and nonmedical assistance for people who have difficult caring for themselves due to chronic illness or disabilities.
  • Medicaid
  • A state and federal partnership that provides health insurance coverage for people with lower incomes, older people, people with disabilities and some families and children.
  • What Our Customers Say

    Why buy this report?

    The Adult Day Care industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Adult Day Care:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Adult Day Care market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Adult Day Care, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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