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Adult Day Care in the US - Market Research Report (2014-2029)

Gabriel Seiler Gabriel Seiler New York, United States Last Updated: November 2024 NAICS OD5942

Revenue

$7.5bn

2024

$7.5bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

280k

Businesses

32,864

Wages

$X.Xbn

Adult Day Care in the US industry analysis

Over the last five years, the aging Baby Boomer generation, nearly one-fifth of the US population, has significantly boosted demand for adult day cares. Adult day cares have seen solid usage as improving life expectancies expands their primary client base. The industry's growing popularity as a low-cost alternative to nursing homes led to an influx of new providers, particularly among owner-operators offering at-home care. The rise of at-home adult day care services has perpetuated adult day care's fragmentation, allowing new providers to cater to underserved areas. Despite this growth, labor shortages force higher wages and compress profit. Adult day care providers' revenue has been climbing at a CAGR of 2.1% to an estimated $7.5 billion over the five years through 2024, including an expected rise of 1.3% in 2024 alone.

Trends and Insights

  • The aging population is expanding adult day cares' primary user base. Adults over 65 face more medical issues, making adult day care centers especially popular with them. Adult day care centers see greater usage as medical technology lifts life expectancy.
  • Adult day care services primarily offer two models: social and medical care. Social care covers group activities, while medical care consists of various therapies. Some centers integrated both models, though this boosts labor costs.
  • Adult day care providers settle in areas with dense populations. Centers in populated areas are more visible to potential clientele.
  • Adult day care is highly fragmented. Adult day care centers cater to local demand, since adults aren't willing to travel far for care. Nonemployers and small providers can remain competitive, even in a saturated market.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 2.1 % over the past five years, to reach an estimated $7.5bn in 2024.

Trends and Insights

Adult day cares' use base is expanding as the population ages

  • The Baby Boomer generation, born between 1946 and 1964, accounts for an estimated one-fifth of the population. This generation is either approaching or well into retirement age. The number of adults 65 and over surged at its highest rate on record in 2024 as Baby Boomers continued to age into the primary user base for adult day cares.
  • Additional trends and insights available with purchase
Adult Day Care in the US
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

Biggest companies in the Adult Day Care in the US

Company
Market Share (%)
2024
Revenue ($short_0)
2024
Profit ($short_0)
2024
Profit Margin (%)
2024

There are no companies that hold a large enough market share in the Adult Day Care in the US industry for IBISWorld to include in this product.

Products & Services Segmentation

Adult Day Care in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Social services model, Medical services model and Social and medical services model. Social services model is the largest segment of the Adult Day Care in the US.

Trends and Insights

The social model makes space for gathering

  • Adult day care centers using the social model provide supervision and socialization through therapeutic group activities like discussion groups, arts and crafts, games and dancing, or services like memory simulation exercises. Nearly all centers using this model provide lunch and some offer transportation.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

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.

What's included in this industry?

Care-planning servicesDaily living assistanceNursing and health servicesTherapeutic servicesMeal servicesTransportation servicesSocial activities

Companies

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

Related Terms

MEDICAIDLONG-TERM CARE (LTC)DEMENTIA

Industry Code

NAICS 2017

NAICS 62412 - Adult Day Care in the US

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 aging population is expanding adult day cares' primary user base. Adults over 65 face more medical issues, making adult day care centers especially popular with them. Adu...

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

Adult day care services primarily offer two models: social and medical care. Social care covers group activities, while medical care consists of various therapies. Some cente...

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

Adult day care providers settle in areas with dense populations. Centers in populated areas are more visible to potential clientele.

In this chapter (1)

  • Business Locations

Charts

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

Tables

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

Detailed analysis

  • Geographic spread of the industry across North America, 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

Adult day care is highly fragmented. Adult day care centers cater to local demand, since adults aren't willing to travel far for care. Nonemployers and small providers can re...

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

No single care provider holds a market share greater than 1.0%. Over half of all care providers are owner-operators and operate in a single location.

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

Detailed analysis

    External Environment

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

    Analyst insights

    Adult day care is moderately regulated on both the state and federal levels. Like the rest of the healthcare industry, adult day care providers must obtain proper certificati...

    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

    Wage costs consume over half of providers' revenue. Adult day care providers must hire specially trained and qualified staff for day-to-day operations. Keeping a low staff-to...

    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

    • Industry Multiples (2017-2022)
    • Industry Tax Structure (2017-2022)
    • Income Statement (2017-2022)
    • Balance Sheet (2017-2022)
    • Liquidity Ratios (2017-2022)
    • Coverage Ratios (2017-2022)
    • Leverage Ratios  (2017-2022)
    • Operating Ratios (2017-2022)
    • 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 Adult Day Care in the US industry in United States in 2024?

    The market size of the Adult Day Care in the US industry in United States is $7.5bn in 2024.

    How many businesses are there in the Adult Day Care in the US industry in 2024?

    There are 32,864 businesses in the Adult Day Care in the US industry in United States, which has grown at a CAGR of 4.5 % between 2019 and 2024.

    Has the Adult Day Care in the US industry in United States grown or declined over the past 5 years?

    The market size of the Adult Day Care in the US industry in United States has been growing at a CAGR of 2.1 % between 2019 and 2024.

    What is the forecast growth of the Adult Day Care in the US industry in United States over the next 5 years?

    Over the next five years, the Adult Day Care in the US industry in United States is expected to grow.

    What does the Adult Day Care in the US in United States include?

    Care-planning services and Daily living assistance are part of the Adult Day Care in the US industry.

    How competitive is the Adult Day Care in the US industry in United States?

    The level of competition is moderate and increasing in the Adult Day Care in the US industry in United States.

    Related Industries

    Widen your competitive advantage with related industries

    Competitors

    • Home Care Providers in the US
    • Nursing Care Facilities in the US
    • Elderly & Disabled Services in the US

    Complementors

    • There are no industries to display.

    International industries

    • Day Care in Canada
    • Personal Welfare Services in Australia
    • Personal Welfare Services in New Zealand
    • Social Services for the Elderly & People with Disabilities in the UK

    View all industries in United States

    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    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 the US include: 

    • US Census Bureau
    • US Bureau of Labor Statistics
    • US International Trade Commission

    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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