Industry research
Scope
Europe
Companies
126
Table of contents
What does the elderly care market landscape look like in Europe?
The market structure varies between the stationary and ambulatory care segments. The stationary care segment is less dispersed, with players continuously expanding through acquisitions (e.g. Ambea acquiring >10 targets in the past ~5 years), while the ambulatory segment remains more fragmented. The higher concentration in the stationary segment is primarily driven by substantial upfront capital investment (CAPEX) and higher staffing requirements. Next to that, business models vary significantly based on real estate ownership, with larger incumbents commonly separating ownership and operation either fully or partially. For hybrid players that own their facilities, entry barriers are heightened by project development costs and real estate management structures, in addition to the usual care-related challenges. Cross-border growth remains constrained by regulatory and staffing hurdles, though ongoing digitisation is helping to alleviate workforce shortages and enhance billable care time.
What is the level of investor activity in Europe's elderly care industry?
Sponsor-led interest has been moderate, with ~44% of identified assets being sponsor-backed (August 2025). Investors are primarily attracted by the (i) favourable demographic megatrends, (ii) the elderly being more likely to require hospital-grade care and (iii) digital surveillance and tracking tools improving care efficiency. On the other hand, the (i) expanding care labour gap, (ii) older adults relying more on informal care and (iii) lagging public funding for elderly care serve as detractors for investors.
What are the key ESG considerations in Europe's elderly care industry?
The ESG agenda centres around social and governance issues. Herein, social challenges relate to the ongoing staffing shortages which impact the quality of care and the well-being of residents. To address this, incumbents introduce initiatives to attract and maintain their workforce and develop care facilities that stimulate social interaction. The governance agenda entails for-profit models that can hurt care quality and reputational damage. Identified players seek to take a leading role in governance reform by transforming into a mission-driven organisation with incentives linked to ESG objectives.
Statista (March 2025) estimated the European long-term care market at ~€239.0bn in 2025 and expects it to reach ~€279.8bn by 2029 at a +3.9% CAGR
The proportion of the European population aged over 65 years was estimated at ~21.1% in 2022 and is expected to reach ~32.5% by 2100 (Eurostat, March 2023)
Favourable megatrends related to the growing share of the elderly population and increasing longevity of European citizens. These developments expand the overall addressable market and extend the duration over which potential customers can be served (UniCredit, May 2025; Eurostat, March 2023)
As life expectancy continues to rise, European citizens will spend more years with severe chronic conditions (e.g. dementia, oncology) requiring hospital-grade care. This shift creates an opportunity for elderly care providers to expand into higher-margin service areas traditionally handled by hospitals (interview by Gain.pro)
Digital surveillance and tracking tools in care settings improve efficiency and unlock growth by reducing unnecessary visits, freeing up time for critical, billable activities (World Health Organization, September 2024; interview by Gain.pro)
The care labour gap continues to expand, with unfilled health and social care positions in Europe expected to rise from ~1.6m in 2024 to ~4m in 2030. To attract more workers, employers are likely to implement wage increases alongside additional talent acquisition measures (e.g. training programmes), exerting further pressure on profitability (Bruegel, January 2025; European Parliament, August 2024)
Public funding for long-term care lags behind the growing demand. In turn, insufficient state support raises concerns over the industry's long-term sustainability, threatening the quality of life for the elderly and imposing significant economic burdens (Bruegel, January 2025; European Central Bank, May 2024)
Older adults are increasingly encouraged to remain in their homes longer, with ~60% of older adults across OECD countries receiving only informal, unpaid care. With governments increasingly recognising the role of informal care, this limits the revenue potential for identified players (Bruegel, January 2025, EUR, May 2024; Eurocarers, May 2022)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 126 private companies, incl. financials, ownership details and more.
A view on all 585 deals in the industry
ESG assessments with highlighted ESG outperformers
