The home healthcare technology industry could generate $15 billion in revenue by the year 2020 according to a new study published by Incucomm.
With funding from ActiveCare, Inc, the study found the market is currently split into two specific segments, Personal Emergency Response System (PERS) and ActiveHome Monitoring System (ACTIVE HOME).
While adoption of these types of products to help seniors age in place is relatively small, the growing number of baby boomers sets the stage for significant growth in the coming years. For the active home market, there are an estimated 32,000 units currently in use by consumers. But by 2015, the market could reach 1.6 million units and 2.6 million units by 2020.
“As the graying of America continues and healthcare costs continue to sour, seniors are demanding a change; they want to age in place,” said John Volpi, CTO of Incucomm.
One of the biggest obstacles facing the growth of the market, is the lack of awareness for such products.
“The seniors and their caregivers/guardians are not aware of what is possible and the message to them is often garbled,” said the report. The most well known marketing awareness campaigns like the popular, “I’ve fallen and I can’t get up” commercials have helped, but they also come with a negative connotation as it exudes helplessness, when these services should be exuding empowerment.
As far as costs are concerned, analysis done by Incucomm showed the money spent on an ACTIVE Home system resulted in a net positive payback of $10,000-$16,000 in the first year when medical costs of various types were considered.
“This poses an excellent opportunity for the ACTIVEHOME market segment to educate seniors and the public in general on the value of these systems,” said the report.
View a copy here.
Editors Note: A previous version of this article said there are an estimated 23,000 units, it has been corrected.