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What key factors are powering the surge in the adult day care market right now?

The adult day care market has experienced substantial growth, rising from $16.94 billion in 2024 to $18.11 billion in 2025 at a CAGR of 6.9%. The growth trajectory has been influenced by the rising need for transitional care, a shift from traditional family structures to nuclear families, increased demand for home and community-based care (HCBC), greater awareness of elderly care, and expansion in adult care centers.

How fast Is the adult day care market expected to grow, and what’s its future value?

The adult day care market is anticipated to witness notable growth, reaching $23.28 billion by 2029 with a CAGR of 6.5%. Contributing factors include rising chronic conditions, longer life expectancy, an increasing elderly population, growing demand for elderly healthcare services, and a surge in dementia and Alzheimer’s cases. Major trends include technological advancements, improvements in mental health solutions, creative teaching methods, customized care programs, and advancements in adult day care technologies.

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What are the leading drivers of growth in the adult day care market?

The rising number of individuals with Alzheimer’s disease is projected to fuel the adult day care market. This progressive neurological condition leads to cognitive decline, driven by genetic and biological factors, including amyloid plaques and tau tangles. Adult day care services provide structured activities, specialized care, and social engagement, improving patients’ quality of life while supporting caregivers. For instance, in May 2024, the UK’s Office for National Statistics Census reported that in 2023, dementia and Alzheimer’s were the leading causes of death in England and Wales, accounting for 66,876 deaths (11.5%), up from 65,967 deaths (11.4%) in 2022. Therefore, the increasing prevalence of Alzheimer’s disease is driving the adult day care market.

What are the key segments defining the adult day care market?

The adult day caremarket covered in this report is segmented –

1) By Type: Medical Focused, Dementia Specific, Respite Care, Recreational, Other Types

2) By Service: Adult Social Day Services, Adult Day Healthcare Services, Specialized Day Care Services

3) By Funding: Private, Public

4) By End-User: Elderly, Disabled Individuals, Other End-Users

Subsegments:

1) By Medical Focused: Chronic Disease Management, Post-Surgical Care, Medication Management, Pain Management, Physical Therapy And Rehabilitation

2) By Dementia Specific: Alzheimer’s Care, Parkinson’s Disease Care, Memory Care Services, Cognitive Support Programs, Behavior Management Programs

3) By Respite Care: Short-Term Care, Family Caregiver Support, Emergency Respite Services, Overnight Respite Services

4) By Recreational: Social And Group Activities, Arts And Crafts Programs, Fitness and Wellness Programs, Outdoor Activities and Excursions, Music And Therapy Programs

5) By Other Types: Hospice Care, Palliative Care, Multi-Disciplinary Services, Spiritual Or Religious Services

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Who are the key players steering the development of the adult day care market?

Major companies operating in the adult day care market are Orpea Group, Home Instead Inc., Trinity Health Corporation, Koninklijke Philips N.V., Encompass Health Corporation, Bayada Home Health Care Inc., Interim HealthCare Inc., Brookdale Senior Living Inc., BrightStar Care, Amedisys Inc., LHC Group Inc., FC Compassus LLC, Extendicare Inc., Exceptional Living Centers, Age U.K., Rosewood Care Group, St Luke’s ElderCare Ltd., Living Assistance Services Inc., Caring People Inc., Right at Home LLC, Senior Care Centers of America, Ascension Living Saint Joseph, SH Town Square Franchising Inc., United Medicare Pte Ltd

What emerging trends are influencing the growth of the adult day care market?

Companies in the adult daycare market are offering innovative services integrated with memory care therapies to improve seniors’ quality of life. These services employ personalized therapeutic activities to boost cognitive function, emotional well-being, and social engagement for individuals with memory impairments. For example, in December 2022, Town Square Sandy Springs, a US-based adult daycare center, launched an innovative 1950s-themed memory care facility. By incorporating reminiscence therapy and social interaction, it provides tailored care plans and activities to enhance cognitive health and emotional support, fostering a sense of community among older adults.

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Which regions are most influential in expanding the adult day care market?

North America was the largest region in the adult day care market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the adult day care market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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