Advance Directives Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

Advance Directives are legal documents that allows an individual to outline their preferences for medical care. If they are unable to communicate their decisions due to illness or incapacity, this. These directives ensure that person healthcare wishes are known and respected by healthcare providers and caregivers. There are two main advance directives including living will and durable power of attorney for healthcare.

The living will document specified types of medical treatment the person wishes to receive or avoid, in scenarios where they are enabled to express their wishes themselves, it can include instructions on the use of resuscitations, mechanical ventilations to feeding or other life prolonging interventions. The other document the point assisted individual known as healthcare agent to make decisions on behalf of the person if they are unable to do so.

MARKET OVERVIEW

The global market valuation of Advance Directives market was valued at approximately USD 122 billion in 2023 and is projected to reach USD 395 billion in 2034 exhibiting a CAGR of 18% during the forecast period of 2024-2034. Advance Directives ensures that an individual's healthcare preferences are respect and followed when they are unable to communicate. The market is aligned with healthcare sector, which makes it a sustainable and growing market.

GROWTH DRIVERS

The global aging population he's one of the major growth drivers of the market and significantly drives the market towards growth. The aged people are more incident to chronic illness and potential incapacity. According to WHO, the number and percentage of people aged 60 and older is increasing at an unprecedented rate and will continue to do so in the coming decades. In 2019, there were 1 billion people aged 60 and older, and this number is expected to increase to 1.4 billion by 2030 and 2.1 billion by 2050.

This means that the proportion of the world's population over 60 will almost double from 12% to 22% between 2015 and 2050.  The education campaigns by healthcare organizations or advocacy groups raises awareness about the importance of advanced directives. The National Institute on Aging (NIA) promotes advance care planning, which includes learning about and considering future medical care decisions and sharing those preferences with others. Advance directives are legal documents that state a person's treatment preferences and name a proxy decision maker in case they can't make their own health care decisions.

Advance directives only go into effect if a person is incapacitated and can't speak for themselves, such as due to injury or disease. The governments recognize the importance of advanced directives and providing legal supports or requirements. The Patient Self-Determination Act (PSDA) is a federal law, and compliance is mandatory. It is the purpose of this act to ensure that a patient's right to self-determination in health care decisions be communicated and protected. The technological advancements like digital platforms and electronic health records facilitating the creation, storage and access to advanced directive, contributing towards the market growth.

My Directives is a free, secure, and accessible online tool that allows users to create, store, and share advance healthcare documents. The insurance providers like United Healthcare and Medicare increasingly support the use of advanced directives.  Medicare and reimbursement policies for advanced care planning discussions incentivize healthcare providers to address these issues with the patients, which promotes the adoption of advance directives.

 MARKET SEGMENTATION:

·         By Component– Software and services

·         By Demographics – By elderly population (> 65 years), by middle aged (40-64 years), by young adults (18-39 years)

·         By End-User - B2B (Payers and healthcare providers), B2C (patients and caregivers)

·         By Region- North America, Europe, Asia Pacific, The Middle East and Africa, South America

Advance Directives Market Segment By Component Segment Review:

The software solutions include digital platforms that allows the users to create, store and manage their advanced directives online. These platforms can be or standalone or integrated into existing electronic health record systems. The platforms offer mobile apps or web-based access which allows the users to update their advanced directives from anywhere.

The hospitals, clinics and other healthcare providers uses this software to integrate advanced directives into the patient records so that the directives are the available during the medical emergencies. The services include guidance in creating advanced directives provided by healthcare providers, legal advisors or specialized consultants. The hospitals and clinics employ services to train staff develop policies integrate advanced directives into patient care workflows.

Advance Directives Market Segment By Demographics Segment Review:

The elderly segment is more likely to face chronic and complex medical conditions, making end of life planning more relevant. This demographic is generally more aware of advanced directives due to increased healthcare interactions and recommendations from healthcare providers. The healthcare management ensures that the medical treatment align with the elderly individual preferences. The middle-aged segment often engages with preventive health care measures and long-term planning, including financial and healthcare planning. The young adult segment is likely to use digital platforms and apps for creating and managing advance directives.

Advance Directives Market Segment By End User Segment Review:

In the B2B segment, the payers including private insurance companies and government programs like Medicare and Medicaid, have a vested interest in promoting advanced directives to manage healthcare costs and ensure patient centric care. The employer offers health benefits to employees, incorporating advanced directives into their wellness programs. The providers like hospitals and clinics are on the forefront lines of the patient care and benefit directly from having clear advance directives, to guide the treatment decisions. In the B2C segment, patients include elderly individuals those with chronic illness and proactive middle-aged adults planning for future health care needs. The patients seeking to maintain control over their health care decision through advance directives.  The caregivers who are responsible for making healthcare decisions for their loved ones.

Advance Directives Market Regional Analysis:

North America is a significant market driven by the factors like rapidly aging population and regulatory support like Patient Self-Determination Act. Europe is another significant market driven by the factors like the increasing aging population and regulatory frameworks like the European Association for Palliative Care. Asia Pacific is a really growing market driven by rising awareness about healthcare planning and government initiatives like Australia’s Advance Care Planning. The Middle east and Africa are a growing market due to emerging healthcare systems. South America is a promising market due to growing healthcare awareness.

Key Challenges:

The lack of awareness and understanding of what advanced derivatives are, or why they're important may lead to misunderstanding the purpose and process of creating advanced derivatives. This may lead to low adoption rates among the general population, or misinformed individuals may not utilize advance directives effectively. The inadequate integration of advanced derivatives into electronic health records and other health information systems and technical challenges, is one of the significant challenges for the market.

Competitive Landscape:

In the highly competitive Advance Directives market, companies are investing heavily in research and development to innovate and improve the product and services. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share. Recent developments includes – West Health and Sharp healthcare collaborated for an integrated geriatric care model, in January 2023. ADvault, Inc., introduced the Make My Directives and ADvault has formed strategic partnership with the National Hospice and Palliative Care Organization to offer top-notch digital tools for advance care planning, in April 2023. ADvault. Inc collaborated with OneAccord Health to improve communication and accessibility of advance directive, in March 2022. Aledade, Inc. acquired advance directives company iris healthcare, in January 2022.

Global Key Players:

·         ADvault, Inc.

·         VyncaCare

·         WiserCare Inc

·         ACP Decisions

·         Aledade Inc

·         Honor My Decisions LLC

·         Sharp Healthcare

·         Bronson Health Care Group

·         Vital Decisions

·         Koda Health

·         MIDEO