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Social Services for the Elderly & People with Disabilities in Germany - Market Research Report (2014-2029)

Clara-Camille Schneider Clara-Camille Schneider Frankfurt, Germany Last Updated: October 2024 WZ Q88.10DE

Revenue

€33.2bn

2024

€33.2bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

471k

Businesses

2,256

Wages

€XX.Xbn

Social Services for the Elderly & People with Disabilities in Germany industry analysis

The increase in the number of people in need of care in Germany has had a positive impact on the outpatient care sector in recent years. Since 2019, turnover has grown by an average of 3% per year. The high demand can be explained by the extraordinary popularity of outpatient care. For many people, it is the preferred form of care in old age over nursing and retirement homes. Sales growth was therefore characterised in particular by an increase in the number of customers cared for and the resulting expansion in business activities.The poor earnings situation in recent years was due, among other things, to the increased personnel costs resulting from the introduction of the pay scale regulation in September 2022, which were insufficiently refinanced by the care insurance funds. Other cost drivers for care services, which often travel long distances in their cars, were the high energy and fuel prices. Many were also struggling to refinance previous cost increases in 2023. The high cost increases and lack of staff significantly increased the risk of insolvency.In 2024, turnover in the sector is expected to total €33.2 billion, which corresponds to an increase of 3.6% compared to the previous year. Despite the stable turnover, an increase in operating costs is having a negative impact on companies' earnings. In order to alleviate the shortage of nursing staff, there will be a wage increase for nursing assistants, qualified nursing assistants and skilled nursing staff from January 2024. However, refinancing the increase in personnel costs remains a challenge for industry players. The increases in budget benefits provided for by the Care Support and Relief Act (PUEG) are unlikely to be sufficient to cover the additional costs, which are therefore likely to be refinanced primarily through price increases. Another problem is the fact that the funding organisations regularly do not refinance the additional costs immediately, citing the terms of existing contracts. The inadequately refinanced personnel and material costs will result in many companies employing fewer staff and offering fewer care services.The rising number of people in need of care in Germany and the great popularity of outpatient care services will keep demand at a high level in the coming years and lead to numerous new start-ups. Accordingly, IBISWorld anticipates average annual growth of 2.6%, which means that industry sales of 37.8 billion euros can be expected in 2029. However, staff shortages are likely to lead to reduced capacity utilisation and continue to represent a significant obstacle to growth.

Trends and Insights

  • The number of people in need of care is likely to continue to grow in the coming years. At the same time, the number of people cared for by relatives will decrease, meaning that more people will be dependent on outpatient care services.
  • The demand for outpatient nursing care has risen rapidly in recent years. Many people in need of care prefer to be cared for at home rather than in a nursing or retirement home.
  • Most of the companies in the sector are based in the central region. This is hardly surprising, as this is also the most densely populated region in Germany.
  • There is almost no competition between the individual providers within the industry. Although the number of companies has increased on average in recent years, there is no competition for customers due to the high demand.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 2.9 % over the past five years, to reach an estimated €33.2bn in 2024.

Trends and Insights

The higher budget benefits under the PUEG are not sufficient to refinance the rising personnel costs

  • The Care Support and Relief Act (PUEG), which came into force in July 2023, provides for a 5% increase in outpatient care benefits in kind, i.e. the amounts that long-term care insurance provides to those in need of care for their nursing care, from 2024.
  • Additional trends and insights available with purchase
Social Services for the Elderly & People with Disabilities in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Creative solutions are needed to relieve employees and remedy the staff shortage

  • The high demand for care services means that many operators are finding creative ways to meet demand. Some companies are opening their own nursing schools in Germany. The aim is to make the profession more attractive by covering the training costs and paying a salary during the training period.

Biggest companies in the Social Services for the Elderly & People with Disabilities in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Home Instead GmbH & Co. KG
828.4
Victor’s Bau + Wert AG
519.2
Renafan GmbH
392.3

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Products & Services Segmentation

Social Services for the Elderly & People with Disabilities in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Outpatient nursing care, Outpatient social care and Other services. Outpatient nursing care is the largest segment of the Social Services for the Elderly & People with Disabilities in Germany.

Trends and Insights

Outpatient nursing care is the most important source of income for the sector

  • The carers visit the cared-for person several times a week or day, as required. The care provided depends on the person's level of care. Activities may include doing the shopping, preparing meals or checking the person's state of health.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The outpatient care services sector includes the care of elderly people and people with disabilities by outpatient services or other facilities. This also includes rehabilitation facilities or care facilities with an educational focus. The sector does not include retirement and nursing homes or day care for children.

What's included in this industry?

Outpatient nursing careOutpatient social care

Companies

Home Instead GmbH & Co. KGVictor’s Bau + Wert AGRenafan GmbH

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Related Terms

CARE WHEELAMBULANTMEDICAL SERVICE

Industry Code

WZ 2008

WZ 88.10 - Social Services for the Elderly & People with Disabilities in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The number of people in need of care is likely to continue to grow in the coming years. At the same time, the number of people cared for by relatives will decrease, meaning t...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The demand for outpatient nursing care has risen rapidly in recent years. Many people in need of care prefer to be cared for at home rather than in a nursing or retirement ho...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Most of the companies in the sector are based in the central region. This is hardly surprising, as this is also the most densely populated region in Germany.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

There is almost no competition between the individual providers within the industry. Although the number of companies has increased on average in recent years, there is no co...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The market is highly fragmented and characterised by numerous small providers. Market concentration in the sector is so low that no company has a market share of 5%.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Home Instead GmbH & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Victor’s Bau + Wert AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Renafan GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Home Instead GmbH & Co. KG, and factors influencing its performance in the industry
  • Description and key data for Victor’s Bau + Wert AG, and factors influencing its performance in the industry
  • Description and key data for Renafan GmbH, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The 2022 care reform aims to increase pay in geriatric care. Since September 2022, only retirement homes and care services that have concluded a collective agreement for thei...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

There is a high shortage of skilled labour in the industry, which has a negative impact on personnel costs. As a result, new negotiations are being held with the cost bearers...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Social Services for the Elderly & People with Disabilities industry in Germany in 2024?

The market size of the Social Services for the Elderly & People with Disabilities industry in Germany is €33.2bn in 2024.

How many businesses are there in the Social Services for the Elderly & People with Disabilities in Germany industry in 2024?

There are 2,256 businesses in the Social Services for the Elderly & People with Disabilities industry in Germany, which has grown at a CAGR of 1.6 % between 2019 and 2024.

Has the Social Services for the Elderly & People with Disabilities industry in Germany grown or declined over the past 5 years?

The market size of the Social Services for the Elderly & People with Disabilities industry in Germany has been growing at a CAGR of 2.9 % between 2019 and 2024.

What is the forecast growth of the Social Services for the Elderly & People with Disabilities industry in Germany over the next 5 years?

Over the next five years, the Social Services for the Elderly & People with Disabilities industry in Germany is expected to grow.

What are the biggest companies in the Social Services for the Elderly & People with Disabilities market in Germany?

The biggest companies operating in the Social Services for the Elderly & People with Disabilities market in Germany are Home Instead GmbH & Co. KG, Victor’s Bau + Wert AG and Renafan GmbH

What does the Social Services for the Elderly & People with Disabilities in Germany include?

Outpatient nursing care and Outpatient social care are part of the Social Services for the Elderly & People with Disabilities industry.

Which companies have the highest market share in the Social Services for the Elderly & People with Disabilities in Germany?

The company holding the most market share in Germany is Home Instead GmbH & Co. KG.

How competitive is the Social Services for the Elderly & People with Disabilities industry in Germany?

The level of competition is low and steady in the Social Services for the Elderly & People with Disabilities industry in Germany.

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.