i3 - May/June 2016 - 45

BY STEVE KOENIG

Business

M A R K E T B E AT
ACTIVE AGING: THE NEW FRONTIER OF
CAREGIVING

he U.S. Census Bureau projects that by 2050 the U.S.
population aged 65 and over will double to nearly 84
million. However, the aging population's desire to live
healthier, happier lives, stay active and be independent remains
constant. For aging consumers and family caregivers, innovative 'Active Aging' technologies offer proactive solutions that
balance growing older with the human pursuit of longevity
and quality of life. For the consumer technology industry, this
new dynamic in healthcare presents a considerable market
opportunity.

Matelly/Getty Images

CTA's Active Aging Study,
produced in partnership with
the CTA Foundation, found the
active aging market now serves
a total addressable market of
85 million consumers, consisting of both seniors and their
family caregivers. This market
represented a $24.4 billion
market opportunity last year
and is expected to grow to $42.7
billion by 2020-a 12 percent
compound annual growth rate.
More than the growth in the
aging population alone, this
growth trend is based on serving diverse needs of seniors as
they age.

for lifestyle products and services if providers can rise up to meet
the new senior generations' active aging needs.
CTA segments the active aging market into three categories,
including: safety and smart living, health and remote care, and
wellness and fitness technologies. Myriad market drivers will
underpin the growth of these sectors ranging from the shortage
of primary care physicians to adoption of fixed/mobile broadband and wearables.
Changes in government regulations led by a pro-innovation
stance on policymaking will stimulate opportunity in the active
aging market as well. For example, The U.S. Food and Drug
Administration (FDA) recently reformed its 510(k) clearance
process to simplify regulation for devices that are low-risk and
fall into the FDA's Class II or
Class I device category. More,
the FDA recently updated its
regulations governing mobile
health apps. It all adds up to
creating a forward-looking
policy path allowing innovators and entrepreneurs to
bring active aging solutions
to market.

Aging at Home
In addition to improved FDA
transparency and regulations
that support innovation, Baby
Boomers are beginning to
hit 65 and the Silent Generation is expected to live longer.
This demographic dynamic
is creating a dilemma in the
THE ACTIVE AGING MARKET ADDRESSES SENIOR
long-term care market as
An Array of Solutions
CONSUMERS'
NEEDS
AND
WANTS
FROM
MULTIPLE
providers strain to cope with
With solutions encompassing
rising demand amid a capachardware, software and service
DIMENSIONS.
ity shortage and restrained
innovations, the active aging marfunding/reimbursement.
ket addresses senior consumers'
Therefore the costly nature of long-term care makes the prosneeds and wants from multiple dimensions, including physical,
pect of active aging at home more appealing, if not necessary.
social, emotional and cognitive functionalities.
Enter technology innovation riding the wave of two industry
Traditional health products and services for today's seniors
megatrends (the Internet of Things and the smart home) to
(e.g., medical diagnostic equipment and in-patient and outtender solutions and services to not only simplify consumers'
patient medical procedures) represent more "passive aging"
lives, but offer insights about health behaviors. In addition to
approaches to care. However, as the U.S. healthcare system
better care and quality of life, it all adds up to peace of mind
promotes more accountable and preventive care, opportunities
for seniors and their family caregivers.
in the active aging market start to emerge. By using connected
As the population shifts older, consumer technology will allow
care technologies and services, seniors can prevent and preempt
seniors to live healthier, more connected lives, keeping them
lifestyle inconveniences caused by aging challenges. These consafer, independent and more engaged with their families and
sumer benefits can translate into savings of billions of dollars for
communities. Could there be a better example of consumer techthe U.S. healthcare industry. They also can lead to new revenue
nology making life better?
opportunities-also potentially measured in billions of dollars-
C TA . t e c h / i 3

MAY/JUNE 2016

http://CTA.tech/research

i3 - May/June 2016

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