May 29, 2024
Life Plan Communities Market
Ict

The Rapidly Aging Global Population Is Driving The Life Plan Communities Market

Life plan communities, also known as continuing care retirement communities (CCRCs), offer seniors independent living residences, assistance with daily living, and skilled nursing facilities all on one campus. This enables seniors to enjoy an active lifestyle and age in place without the hassle of relocating as their needs change. In addition to independent living units like apartments and homes, life plan communities provide a variety of services such as meals, housekeeping, transportation, social and wellness programs, and on-site healthcare. The one-time entry fee and monthly service fees cover the costs of all current and future assisted living or nursing home facilities, giving seniors and their families financial security in retirements years. Life plan communities are highly sought after as they fulfill the desire of many elderly to remain socially engaged and independent for as long as possible while eliminating the fear of being a burden on loved ones.

The global Life Plan Communities Market is estimated to be valued at US$94.99 billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Key Trends:

One of the key trends in the life plan communities market is the growing preference for more affordable but high-quality retirement options. Several life plan communities are now offering lower entry fees and monthly costs by providing more compact units or sharing amenities like clubhouses and fitness centers. Also seeing growth are smaller life plan communities of 50-100 units located closer to city centers, allowing residents easier access to medical facilities, public transport, and cultural activities. Another notable trend is the rising focus on wellness programs and facilities. Many communities are expanding wellness centers and partnering with local hospitals to offer on-campus health screenings, rehab services, and telehealth options for easy access to care. This is helping make retirement communities the new hubs for healthy, active aging.

Porter’s Analysis:

Threat of new entrants: The life plan communities market requires large capital investments to build senior living communities. Additionally, existing players have established brand recognition which poses barriers for new players.

Bargaining power of buyers: Buyers have moderate bargaining power as there are multiple life plan community options. However, switching costs are high after joining a community.

Bargaining power of suppliers: Suppliers have low bargaining power as life plan communities can switch to alternative suppliers of goods and services.

Threat of new substitutes: Alternatives like home healthcare and home modifications provide some substitution. However, comprehensive lifestyle offerings make life plan communities relatively less substitutable.

Competitive rivalry: The market has several players competing on parameters like amenities, services, costs and location. This leads to intense competition.

Life Plan Communities Market Segmentation:

  • By Type
    • Continuing Care Retirement Communities (CCRCs)
    • Assisted Living Facilities
    • Independent Living Communities
    • Skilled Nursing Facilities
    • Others
  • By Ownership Type
    • For-profit
    • Non-profit
    • Government
  • By Contract Type
    • Extensive contracts
    • Modified contracts
    • Fee-for-service contracts
    • Equity contracts
    • Others

Key Takeaways:

The global Life Plan Communities Market Size is expected to witness high growth. The global Life Plan Communities Market is estimated to be valued at US$94.99 billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.

North America dominates the market currently due to increasing aging population and higher spend on senior living facilities. The Asia Pacific region is expected to grow at fastest pace due increasing life expectancy and changing social trends.

Key players operating in the life plan communities market include Erickson Living, Holiday Retirement, Life Care Services and Five Star Senior Living. Erickson Living operates numerous CCRCs across the US and has established itself as a premier provider.

The life plan communities market players are focusing on enhancing lifestyle offerings, digitization of services and customizing care packages to attract more residents. Strategic partnerships for expansion, M&As and upgrading existing infrastructure are other growth strategies being implemented.

*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it