Aged Care Residential Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: February 2024
ANZSIC Q8601Revenue
$36.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
335k
Businesses
1,799
Wages
$XX.Xbn
Aged Care Residential Services in Australia industry analysis
Australia’s ageing population increases the need for age-appropriate housing. Older individuals are more susceptible to a range of age-related ailments and need more assistance with everyday activities and personal care. The Aged Care Residential Services industry is expanding as aged care requirements are changing and operators are offering different lifestyle accommodation options.
Trends and Insights
- Aged care residential services operators have been hampered by various challenges. A Royal Commission review into the sector found systemic failures and called for a fundamental overhaul, including a new Aged Care Act, which is now slated for July 2025.
- Operators provide accommodation and care for the elderly through residential aged care facilities or retirement villages. The distinction between these accommodation options is becoming increasingly blurred in line with changing market dynamics and a new continuum of care accommodation models.
- The government plays a dominant role in operators’ geographic profile through a needs-based planning framework. The government has historically relied on an allocation approvals process to control the number, type and locality of aged care places.
- Internal competition for aged care residential operators is high and growing. Moves by the Australian Government to improve transparency in the aged care sector – including a new Star Ratings system – are adding to operators’ competitive pressures.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 4.1 % over the past five years, to reach an estimated $36.4bn in 2024.
Trends and Insights
A series of challenges are hampering residential aged care providers
- Tighter regulatory controls and higher compliance costs resulting from the recent Royal Commission into Aged Care Quality and Safety have challenged aged care providers. Following the Royal Commission’s scathing review – which made nearly 150 recommendations to address the neglect, abuse and substandard care that had recently occurred – the aged care sector is currently being overhauled as part of a major staged reform process.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A new regulatory framework and prudential model will shape the industry’s operating backdrop
- The Labor Government's Federal Budget October 2022-23 contained a $3.9 billion reform package, and addressed 23 of the Royal Commission’s recommendations. New legislation is also being drawn up with supporting legislation required to implement over 50 of the Royal Commission's recommendations.
Biggest companies in the Aged Care Residential Services in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Opal Aged Care | 1,680.0 | |
Regis Healthcare | 1,005.0 | |
Estia Health | 870.0 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Care services, Hotel and lifestyle services and Accommodation services. Care services is the largest segment of the Aged Care Residential Services in Australia.
Trends and Insights
Government funding is the major source of care services' revenue
- Care services have traditionally been provided through government-subsided residential aged care facilities. Residents were previously granted access through a government Aged Care Funding Instrument (ACFI) appraisal although this has recently changed following the introduction of the new AN-ACC funding model in October 2022.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Other Health Services in Australia
- Crisis and Care Accommodation in Australia
- Personal Welfare Services in Australia
Complementors
- Public General Hospitals in Australia
International industries
- Retirement Communities in the US
- Hospices & Palliative Care Centers in the US
- Aged Care Residential Services in New Zealand
- Residential Nursing Care in the UK
- Retirement Homes in the UK
Table of Contents
About this industry
Industry definition
Industry establishments operate long-term aged care accommodation facilities, including government-approved residential aged care centres and retirement villages. Many industry establishments provide residential aged care facilities that service the entire spectrum of dependency, from independent living units and low-care options through to high-care and specialist care options like dementia care, in line with ageing in place principles.
What's included in this industry?
Care servicesHotel and lifestyle servicesAccommodation servicesCompanies
Opal Aged CareRegis HealthcareEstia HealthPurchase this report to view all 6 major companies in this industry.
Related Terms
AGED CARE FUNDING INSTRUMENT (ACFI)PERSONAL-CARE ASSISTANTSRESPITE CAREAGED CARE APPROVALS ROUND (ACAR)HIGHER ACCOMMODATION SUPPLEMENTTRANSITION CARE PROGRAMMEAGEING IN PLACEIndustry Code
ANZSIC 8601 - Aged Care Residential Services in Australia
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
Aged care residential services operators have been hampered by various challenges. A Royal Commission review into the sector found systemic failures and called for a fundamen...
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
Operators provide accommodation and care for the elderly through residential aged care facilities or retirement villages. The distinction between these accommodation options ...
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
The government plays a dominant role in operators’ geographic profile through a needs-based planning framework. The government has historically relied on an allocation approv...
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 Asia Pacific, 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
Internal competition for aged care residential operators is high and growing. Moves by the Australian Government to improve transparency in the aged care sector – including a...
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
Aged care residential services are highly fragmented, reflecting the large number of small enterprises in the industry, including local and regional charitable, religious and ...
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 Opal Aged Care's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Regis Healthcare's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Estia Health's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Opal Aged Care, and factors influencing its performance in the industry
- Description and key data for Regis Healthcare, and factors influencing its performance in the industry
- Description and key data for Estia Health, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
One of aged care residential services’ defining features is the assistance provided by the Federal Government as part of its aged care framework. The Federal Government provi...
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
Aged care residential providers’ cost structure varies depending on whether they operate residential aged care facilities or retirement villages. Other factors include the ty...
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)
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 Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
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.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Aged Care Residential Services industry in Australia in 2024?
The market size of the Aged Care Residential Services industry in Australia is $36.4bn in 2024.
How many businesses are there in the Aged Care Residential Services in Australia industry in 2024?
There are 1,799 businesses in the Aged Care Residential Services industry in Australia, which has declined at a CAGR of 0.0 % between 2019 and 2024.
Has the Aged Care Residential Services industry in Australia grown or declined over the past 5 years?
The market size of the Aged Care Residential Services industry in Australia has been growing at a CAGR of 4.1 % between 2019 and 2024.
What is the forecast growth of the Aged Care Residential Services industry in Australia over the next 5 years?
Over the next five years, the Aged Care Residential Services industry in Australia is expected to grow.
What are the biggest companies in the Aged Care Residential Services market in Australia?
The biggest companies operating in the Aged Care Residential Services market in Australia are Opal Aged Care, Regis Healthcare and Estia Health
What does the Aged Care Residential Services in Australia include?
Care services and Hotel and lifestyle services are part of the Aged Care Residential Services industry.
Which companies have the highest market share in the Aged Care Residential Services in Australia?
The company holding the most market share in Australia is Opal Aged Care.
How competitive is the Aged Care Residential Services industry in Australia?
The level of competition is low and increasing in the Aged Care Residential Services industry in Australia.
