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Ambient Assisted Living (AAL) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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  • 100 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 5185244
UP TO OFF until Dec 31st 2023

Quick Summary:

In the rapidly evolving landscape of global health and social support, the emerging trend of Ambient Assisted Living (AAL) has become more important than ever. This innovative fusion of smart home technology and health assistance is designed with a core focus on supporting the growing older and differently abled populations. As the age population increases, so does the risk and need for constant medical attention and support, fostering a mounting demand for AAL systems that can facilitate independent living for various individuals.

The crucial market report in your hands will supply you with data on the immediate and future trends and the intense growth expected from the global ambient assisted living market. The information will not only help in strategic decision making but also in identifying new business opportunities. Uncover the key drivers of market growth as well as understand the rise of IoT integrated solutions like telehealth, telecare, telemedicine, telecoaching, and mHealth in this space. Gain detailed insights into the cutting-edge trends shaping this promising market. Delve deep into how AAL services are increasingly becoming more posed to support the aging demographic and improving their quality of life.

Over the next five years, the global ambient assisted market is expected to register a CAGR of 21.6%. The ambient assisted living (AAL) market is a new trend combined with smart homes. It is a system that offers assistance and support to the elderly population. The ambient assisted living systems are designed to assist older and differently abled populations with independent living. With the increase in age, the risk to health also increases, so there is a need for continuous monitoring and medical assistance for older people.

Key Highlights

  • According to the United Nations, globally, the number of people over 80 is projected to increase more than threefold between 2017 and 2050, rising from 137 million to 425 million. Additionally, the global population is aging faster, and the numbers are higher in certain regions and countries. For instance, North America and Europe are the two regions of the world with the highest proportion of elderly people in relation to their total populations, according to the UN. Such a rise in population aging will drive the market.
  • According to the report of the US Center for Disease Control and Prevention, the overall life expectancy at birth is steadily increasing, with a target of 74.4 years by 2022, up from 73.3 years in 2017. Most of the increase is due to lower infant mortality. According to the same survey, life expectancy in the United States has dropped for the third year in a row to 78.6 years. People are striving toward a healthy lifestyle to keep them fit and monitor their eating habits; such changes in people's behavior will increase the demand for ambient assisted living solutions.
  • Also, with the rise of the Internet of Things (IoT) and more people using the internet, AAL solutions and services like telehealth, telecare, telemedicine, telecoaching, and mHealth are becoming more popular. Also, more and more doctors are using digital health tools in their practices because they are more efficient and safer.
  • AAL services used to be more expensive than they are now because many of them required manual labor and required either the patient or the doctor to travel, such as monitoring, collecting data and samples, diagnosing, and checking ups.The costs associated with such care have decreased with the latest technological innovations.
  • Telemedicine is a part of AAL, but older people were less likely to use it because they liked getting care in person more. But the recent spread of technology and the COVID-19 outbreak made people more likely to use telemedicine solutions. For example, a study by American Well found that over 52% of Americans over the age of 65 were willing to use telehealth. The top reasons given were faster service, saving time, being more convenient, saving money, and having better access to healthcare professionals.

Ambient Assisted Living (AAL) Market Trends

Increasing Chronic Diseases and Growing Aging Population are Expected to Drive the Market Growth

  • The geriatric population is more inclined to chronic diseases. According to Oxford, over the next few decades, the share of the French population aged 65 and older will increase steadily, reaching about 25% in 2030 and nearly 30% in 2050. As the number of the elderly population is anticipated to increase in the near future, this population is more susceptible to chronic conditions such as cardiovascular, musculoskeletal, and other diseases, which might positively impact the market. ​
  • China has seen a big rise in the number of people with chronic diseases. This is because there are more older people living there. According to the World Population Ageing 2019 report, in China, the population aged 65 years or older is projected to reach 246.98 million by 2030, up from 164.48 million in 2019. ​
  • Globally, there is a big rise in chronic diseases, especially high blood pressure, diabetes, and breathing problems. According to the IDF, 463 million adults were living with diabetes, and in 2019, this is expected to rise to 700 million. 1 in 5 people over 65 has diabetes. ​
  • In addition, 235 million people have asthma, which is common among children, according to the WHO. More than 3 million people die of COPD yearly, accounting for an estimated 6% of all deaths worldwide. In addition to this, an estimated 1.13 billion people worldwide have hypertension. ​
  • Chronic respiratory and cardiovascular diseases among the elderly are becoming increasingly prevalent. According to the American Heart Association (AHA), about 43.7 million Americans aged 60 and above have one or more cardiovascular disease types, such as stroke, heart attack, or heart failure. About two-thirds of cardiovascular disease deaths occur in people aged 75 and older. ​

United States is Expected to Hold Major Share

  • According to the Population Reference Bureau, the world's aging population will have a big effect on the demand for solutions that save energy and have low carbon emissions. This is likely to keep the market growing over the next few years.According to projections, the number of Americans 65 and older will nearly double from 52 million in 2018 to 95 million by 2060, increasing their percentage of the overall population from 16% to 23%.
  • Further, In ambient assisted living, an entertainment system is a collection of interconnected electronic gadgets that offer users entertainment, communication, and other services. Usually, the plans come with a TV, stereo, and other media players. They might also have features for home automation, game consoles, and internet access. In ambient assisted living (AAL), a transportation system is a service that makes it easier for the elderly and disabled to travel around. It can be utilized for social activities, appointments, errands, and shopping. AAL provides door-to-door transportation services, which means the driver will pick it up from home and deliver it to the destination.
  • Multiple smart appliances are undergoing various certification programs. For instance, in April 2021, the ioXt Alliance, the global standard for IoT security, announced that international household appliance manufacturer Midea had certified seven appliances through the ioXt Certification Program. Currently, most smart home devices and solutions are point devices, which implies no integration among devices as each device uses its own application to function.
  • Aside from companies in the healthcare and Medicare industries, more and more mainstream wearable solution providers are adding health monitoring and fall detection features.For example, Apple offers fall detection as part of its latest smartwatch solutions. Such developments are expected to increase over the coming years.
  • As wearables and connected technology become more common, AAL services that help people, like fall support, emergency services, sample collection, and monitoring, are slowly becoming more popular. For example, a user's life was saved by Centra Plus when the user pressed her pendant, which links to an alarm unit, when the older woman's home was engulfed in fire and she was unable to move and get out of the house.

Ambient Assisted Living (AAL) Industry Overview

The market is moderately fragmented, with smaller vendors concentrated in countries with higher demand. The competitive strategy among vendors is to gain a foothold in the market, with innovation and the capability of investing in R&D by significant vendors being on the higher side. Thus, competition in the market is intensifying. In the services segment, enhancing capabilities with the help of technologies is expected to increase and become part of players’ competitive strategies. ​

In June 2022, Amazon announced the release of a series of updates and laid out its general strategy for enabling ambient intelligence. This will change how people in all kinds of settings interact with technology and use artificial intelligence (AI).

In March 2022, Quil, a digital health joint venture between Comcast and Independence Health Group (Independence), announced the limited commercial availability of Quil Assure, a new connected home platform that helps the elderly live more independently and strengthens the support of family and friends who care for them. The Quil Assure app works with smart watches and speakers to send real-time information about a care recipient's health to their Care Circle and turn on safety protocols when they are needed.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview and Evolution of the Ambient Assisted Living Sector
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitute Products
4.3 Major Areas Where the Older Adults Engage with the AAL Market (Work and Training, Health and Care, Information and Communication, Leisure and Culture, Living and Building, Mobility and Transport, Safety and Security, and Vitality and Abilities)
4.4 Value Chain and Business Models
4.5 Impact of COVID-19 on the Smart Home Healthcare Industry
5.1 Market Drivers
5.1.1 Changing Demographics, Government Initiatives, Consumer Interest, Technology Evolution, etc.
5.1.2 Increasing Chronic Diseases and Growing Aging Population
5.2 Market Challenges
5.2.1 Complexity of the Regulatory Environment, in Combination with the Need for Interoperable Solutions
6.1 Type Solution
6.1.1 Hardware (Sensors for Activity Monitoring, Pressure Mats for Accident Detection, Emergency Buttons Attached to Walls or Worn on Body and Other Relevant Connected Products)
6.1.2 Emergency Services (Underlying Services for Elderly Monitoring and On-demand Contacts)
6.2 Geography
6.2.1 North America
6.2.2 Europe
6.2.3 Asia-Pacific
6.2.4 Rest of the World
7.1 Company Profiles
7.1.1 Sensara BV
7.1.2 2PCS Solutions GmbH
7.1.3 Alcove Limited
7.1.4 Cogvis Software and Consulting GmbH
7.1.5 Consequential Robotics Ltd
7.1.6 Cerner Corporation
7.1.7 YoooM
7.1.8 Televic Group NV
7.1.9 Assisted Living Technologies Inc.
7.1.10 Doro AB

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Sensara BV
  • 2PCS Solutions GmbH
  • Alcove Limited
  • Cogvis Software and Consulting GmbH
  • Consequential Robotics Ltd
  • Cerner Corporation
  • YoooM
  • Televic Group NV
  • Assisted Living Technologies Inc.
  • Doro AB