The global home infusion therapy market size in 2021 was estimated at USD 31 billion. It is expected to reach USD 62 billion by 2030, with a CAGR of 8% during the forecast period (2022–2030). Infusion therapy is how a patient receives medications administered using needles or catheters in veins. Receiving this care in the comfort of one's home, instead of a healthcare setting or any other facility, is a cost-effective alternative called "Home Infusion Therapy." Infusion typically is the administration of drugs in the veins or medicines that may be administered through other non-oral routes such as intramuscular (I.M.) injections or epidural near the spinal cord. One of the most common infusion applications is for the treatment of infections through antibiotics. Other applications include nutrition, pain medication, congestive heart failure, immune system-associated conditions, and rheumatoid arthritis.
In the United States, the senior population is growing. According to the U.S. Census Bureau, nearly 77.0 million people in the U.S. will be aged 65 & above by 2034, and this number is estimated to reach 94.7 million by 2060 (from 49.2 million in 2016). With the rising geriatric population, various medical conditions requiring long-term care are likely to increase. The growing preference of people of this age group to avail of healthcare services at home is expected to significantly upsurge the demand for home infusion therapy products & services during the forecast period.
Chronic diseases, which require long-term care, are a crucial risk factor for aging. Alzheimer's disease, dementia, diabetes, and other orthopedic illnesses that impede movement are significant diseases connected with old age (the risk of Alzheimer's disease approaches 50% for people aged 85 and up). As a result of the factor mentioned above, people prefer home care. For example, almost 70% of home healthcare patients are 65 and older.
Moreover, the growing senior population in Asian countries and the presence of enormous untapped opportunities in developing countries like Japan and China, among others, are expected to drive market growth during the forecast period. For instance, by 2050, around 79% of the global population aged 60 years and above is estimated to be living in developing nations.
According to the WHO, chronic conditions like cancer, respiratory disorders, cardiovascular diseases, diabetes, and other life-threatening diseases, account for 60% of all fatalities and 43% of the global disease burden. These percentages will likely increase to 73% and 60% by 2030. Moreover, the rising prevalence of diabetes, which requires a sustained daily dose of insulin, is expected to contribute to market growth. For example, according to an article published by the American Diabetes Association, nearly 30.3 million US citizens live with diabetes, and about 84.1 million are at a high risk of type 2 diabetes.
Home infusion is considered a cost-effective alternative to an extended hospital stay or a nursing home placement for patients suffering from chronic diseases. Administration of medications at home or home infusion offers faster recovery, better experience, fewer complications, and reduced saves. Home infusion therapy enables many patients to resume their daily activities, thereby drastically increasing the quality of their lives.
Dehydration is becoming common among individuals with a sedentary lifestyle. According to an article published by Drip Drop Hydration, nearly 75% of Americans are chronically dehydrated. Dehydration is known to impair cognitive functions and lead to reduced productivity. Moreover, chronic dehydration results in impaired kidney, gastrointestinal, and heart functions. Severe dehydration can also result in death.
The high-risk factors associated with dehydration are likely to fuel market growth. According to an article published by Help Age International, nearly 1 in every five individuals will be aged above 60 years by 2050, contributing to the rising risk of dehydration and facilitating market growth.
Medicare reimbursement available for home healthcare providers and patients is one of the major factors driving the market growth. However, recent reimbursement cuts and rebasing of home health funding are expected to impede market growth during the forecast period. In its draft of the Home Health Prospective Payment System (HPPS) rule for 2014, Medicare proposed to cut home health funding by 3.5% each year from 2014 to 2017. This is expected to significantly affect home health funding and restrict the affordability of patients and senior citizens to avail of clinically advanced and cost-effective home-based care. The implementation of rebasing has resulted in lower average margins, from 8.6% in 2014 to 5.0% in 2017. Moreover, the removal of 170 ICD-9 codes from home healthcare reimbursement policies is expected to restrain the market growth during the forecast period.
Due to significant market participants and high demand for these products, the home infusion therapy market in developed countries like the United States, Germany, France, and Australia is comparably mature. However, developing Asian and Latin American countries currently have a moderate adoption rate of these products due to a lack of understanding. The expansion of this market is expected to be fueled by economic growth and increased disposable income in these countries. If pricing and distribution activities are appropriately handled, manufacturing companies that invest in these fast-growing areas will see rapid growth.
Moreover, consumers in this market are becoming more aware of the importance and benefits of home infusion. With a global increase in literacy rates, people regularly adopt advanced medical technologies. Earlier, people in these countries preferred hospitalizations due to the lack of availability of technologically advanced products and low purchasing power. However, economic growth in these countries is occurring at a tremendous pace, which is expected to increase the adoption of home infusion therapy shortly. This is mainly due to growing awareness, increasing per capita consumer disposable income, and easy availability of products such as infusion pumps, IV cannulas, and others.
The pandemic has resulted in a rapid change in consumer behavior, and it has had a remarkable effect on the supply chain in every market globally. According to BigCommerce, one of the significant shifts was how people are receiving this period of isolation and unpredictability, and overnight changes in consumer behavior were observed. People alter what they buy, when, and how, ranging from bulk buying to online shopping. Since WHO declared the COVID-19 outbreak a pandemic and mandated social distancing, panic buying was witnessed.
With the alarming rise in COVID-19 cases worldwide, countries have been forced to shut down manufacturing units and establish quarantine zones to prevent the spread, which has harmed medical device manufacturers. According to a Monday article, China is the primary supplier of critical components such as printed circuit boards and complicated completed medical equipment to the medical device industry. On the other hand, the shutdown of production facilities in China is projected to impact the market negatively.
The global home infusion therapy market share is segmented by type, product, application, and region.
By type, the global home infusion therapy market is segmented into products and services. The home infusion services market is estimated to reach an expected value of USD 43,850 million in 2030 at a CAGR OF 8%.
By product, the global home infusion therapy market is segmented into infusion pumps, intravenous sets, iv cannulas, and needleless connectors. Due to their widespread use in delivering fluids, including drugs and nutrition, infusion pumps accounted for the most significant market share of 50.5% in 2021. It is estimated to expand at an annual rate of 8.5% during the projection period, reaching a value of USD 8,865 million by 2030. Various infusion pumps, including enteral pumps, syringe pumps, multi-channel pumps, and peristaltic pumps, are available.
On the other hand, the need for needleless connectors is expected to grow at a CAGR of 8.2% during the forecast period. The benefits of these devices, such as reduced bacterial contamination and increased protection against needlestick injuries, have contributed to the market's rise. The demand for syringes and ambulatory pumps increases as home healthcare becomes more prevalent.
Smart pumps with barcode technology help validate a patient's identity, preventing the erroneous medicine from being delivered into the patient's body. These pumps also alert healthcare workers if they select an inappropriate dosage of a drug. The introduction of technologically advanced infusion pumps, such as the CADD-Solis ambulatory infusion pump by Smiths Medical, is estimated to propel the market growth for infusion pumps during the forecast period.
By application, the global home infusion therapy market is segmented into anti-infective, endocrinology, hydration therapy, chemotherapy, enteral nutrition, parenteral nutrition, and specialty pharmaceuticals. The anti-infective market is estimated to expand with a CAGR of 7.5% to reach an expected value of USD 15,655 million in 2030.
The segment's share is expected to increase during the forecast period owing to continuous healthcare reforms and focal point of patients towards reduction of unnecessary hospitalization. The market for parenteral nutrition is expected to witness significant growth during the forecast period due to an increasing number of government initiatives to promote awareness about parenteral nutrition, such as Home Infusion Therapy and Parenteral Nutrition Program by the Washington State Health Care Authority.
By region, the global home infusion therapy market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
North America holds the largest share of the home infusion therapy market, and it is predicted to expand at a CAGR of 7.3%, reaching USD 36,065 million by 2030. One of the leading cause driving market expansion in North America is the rapidly growing geriatric population and the overall incidence of chronic illnesses resulting from an unhealthy lifestyle. Moreover, improving reimbursement scenarios for home infusion therapy in this region supports the increasing preference for home care over hospitals.
For instance, the Medicare Home Infusion Site of Care Act of 2015 seeks to amend the Social Security Act. This amendment would allow home to be a covered infusion site of care for Medicare beneficiaries. As of now, home infusion therapy is covered under the Medicare policy of the Government.
Due to factors such as the rising acceptance of home infusion therapies and the launch of technologically sophisticated products, the home infusion therapy market in North America is likely to grow significantly over the forecast period. Additionally, the increased geriatric population and disease burden are two significant reasons driving market expansion.
Furthermore, as people become more aware, more patients, particularly the elderly, who require long-term care, are opting for home infusion therapy. Medication administration at home is anticipated to cost between USD 150 and USD 200 per day, substantially less than a regular inpatient stay, which costs between USD 1,500 and USD 2,500 per day.
The Asia-Pacific home infusion therapy market is predicted to develop rapidly, owing to advanced healthcare infrastructure and increased patient awareness of home care benefits. It is expected to expand with a CAGR of 9.5% to reach USD 9,945 million by 2030. Japan held the most significant share in the Asia-Pacific in 2021 due to an increasing number of government steps to boost the country's whole healthcare system.
For instance, a government home healthcare program was initiated in Japan in 2018 to make home care solutions more viable. Moreover, there was an increase in reimbursement for home-based parenteral, enteral nutrition, and pain management therapy. Therefore, Japan's home infusion therapy market is expected to grow during the forecast period.