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Residential Care Activities in Germany - Market Research Report (2015-2030)

Maximilian Weikert Maximilian Weikert Frankfurt, Germany Last Updated: July 2025 WZ Q87.00DE

Revenue

€65.9bn

2025

€65.9bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

1m

Businesses

6,289

Wages

€XX.Xbn

Residential Care Activities in Germany industry analysis

The increasing proportion of older people in the population is creating a continuously growing demand for care services. Over the past five years, this trend has led to average revenue growth of 0.5% per year. This comparatively moderate growth is mainly due to the effects of the coronavirus pandemic. In the initial phase of the pandemic, a significant proportion of fatal cases were among residents of inpatient care facilities. During this time, many of those affected and their relatives only decided to move into a nursing or retirement home when necessary, which temporarily slowed the growth of the sector. After the end of the pandemic, the number of moves from home to inpatient care increased again, which also had a positive impact on sector turnover. The development of energy prices, inflation and rising staff costs have placed an additional burden on the sector. As the care insurance funds only partially refinanced these cost increases, the earnings situation deteriorated in 2022 and 2023. Delayed cost reimbursements and falling capacity utilisation due to the increasing shortage of nursing staff put many care facilities under economic pressure in 2023. As a result, the number of insolvencies increased.Revenue growth of 1.7% is expected for 2025, which means that the market volume is likely to reach 65.9 billion euros. At the same time, high payment arrears from social welfare offices and protracted payment processes by local social welfare organisations are causing a tense liquidity situation in the facilities. In order to ensure their economic stability, many operators are passing on most of the rising costs to the residents. As a result, own contributions are likely to continue to rise despite current surcharges for capping and a planned dynamisation of benefit rates. More and more people in need of care are likely to be dependent on social assistance in the future, as they will no longer be able to cover the growing co-payments themselves. < />Despite these challenges, individual market participants are achieving high profit margins in some cases, which is increasing the interest of private equity investors in this sector. The demographic change that will continue in the coming years will both increase the demand for care services and make it even more difficult to find qualified staff. As a result, the sector's capacities will probably not be able to grow at the same pace as demand due to legal requirements. The efficient use of financial and human resources will therefore become more important. Innovative technologies could make an important contribution to relieving the burden on care staff and ensuring the care of those in need. Average revenue growth of 3.8% per year is expected to be achieved in the period up to 2030, meaning that the market volume of the care sector is likely to increase to 79.4 billion euros.

Trends and Insights

  • Demographic change is a double-edged sword for the care sector. On the one hand, the need for care places is increasing, while on the other, the existing staff shortage is worsening.
  • Outpatient care accounts for the largest share of sector turnover. It is very popular because it enables those in need of care to continue to lead a self-determined life in their own home.
  • The geographical distribution of companies in the care sector is heavily dependent on the population in the respective federal states. Accordingly, a particularly large number of companies are located in the densely populated Central and Southern regions.
  • Competition in the care sector is low. Demand for care services often exceeds supply and providers can differentiate themselves from competitors by offering different living concepts.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 0.5 % over the past five years, to reach an estimated €65.9bn in 2025.

Trends and Insights

The severe shortage of skilled labour in the German care sector requires new strategies to secure long-term care

  • The shortage of skilled workers in the German care sector has worsened significantly in recent years. According to the trade union Ver.di, there is currently a shortage of around 110,000 nursing staff to ensure that the healthcare system can meet demand. In addition, in some regions, more than 40% of skilled workers are already over 50 years old, meaning that staffing levels could become even thinner in the near future. It took an average of 210 days to fill vacancies in the nursing sector in 2024; in geriatric care, this figure is even higher at 296 days and it takes twice as long to fill vacancies as it did in 2015. In addition, more and more trained nursing staff are leaving the nursing sector and moving into retail or logistics, as these sectors offer better working conditions. The high number of days lost due to illness, which at 24 days per employee is significantly higher than the average of 16 days in other sectors, illustrates the strain on employees.
  • Additional trends and insights available with purchase
Residential Care Activities in Germany
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

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

Trends and Insights

Demographic change is becoming a twofold challenge for the care sector in Germany

  • According to care statistics from the Federal Statistical Office, the number of people in need of care with care levels 1 - 5 has doubled from 2.86 million in 2015 to 5.69 million in 2023. By 2050, the number of people in need of care could rise to 6.7 - 7.7 million. Over the next three decades, the baby boomer generation will reach an age at which the risk of needing care will increase significantly. Already today, 25% of men and 35% of women aged between 80 and 84 are affected, and from the age of 90 up to 70% of men and 86% of women. At the same time, the supply of carers is shrinking, as around a third of skilled workers are over 50 years old. The German Economic Institute forecasts a shortage of at least 493,000 carers by 2035, 60% of whom will be in inpatient care and 40% in outpatient care.

Biggest companies in the Residential Care Activities in Germany

Company
Market Share (%)
2025
Revenue (€m)
2025
Korian Gruppe
1,685.1
Cidron Atrium SE
1,504.6
Emeis Gruppe
1,083.3

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Residential Care Activities in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Outpatient care, Inpatient care and Assisted living. Outpatient care is the largest segment of the Residential Care Activities in Germany.

Trends and Insights

Outpatient care gives those in need of care the greatest possible autonomy

  • With outpatient care, the care services visit their patients in their homes and carry out the necessary care activities there.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The care sector encompasses all industries that provide care services, as well as homes and residential concepts that are designed to enable residents to live as independently as possible. The care sectors largely support older people, but there are also services for so-called young care, which includes people under the age of 65.

What's included in this industry?

Products and services covered in the Residential Care Activities industry in Germany include Outpatient care, Assisted living, Inpatient care and Partial inpatient care.

Companies

Companies covered in the Residential Care Activities industry in Germany include Korian Gruppe, Cidron Atrium SE and Emeis Gruppe.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Residential Care Activities industry in Germany include care fee, care time and care wheel.

Industry Code

WZ 2008

WZ 87 - Residential Care Activities 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

Demographic change is a double-edged sword for the care sector. On the one hand, the need for care places is increasing, while on the other, the existing staff shortage is wo...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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

Outpatient care accounts for the largest share of sector turnover. It is very popular because it enables those in need of care to continue to lead a self-determined life in t...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

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 geographical distribution of companies in the care sector is heavily dependent on the population in the respective federal states. Accordingly, a particularly large numbe...

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 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

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

Competition in the care sector is low. Demand for care services often exceeds supply and providers can differentiate themselves from competitors by offering different living ...

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 2020-2025
  • 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

There are no major players in the care sector. Even if more and more facilities are being bought up by investors and consolidation can therefore be observed, the majority of ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Korian Gruppe's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Cidron Atrium SE's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Emeis Gruppe's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Korian Gruppe, and factors influencing its performance in the industry
  • Description and key data for Cidron Atrium SE, and factors influencing its performance in the industry
  • Description and key data for Emeis Gruppe, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

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

Analyst insights

The number of residents aged 65 and over has been rising steadily for years. This means that the number of people in need of care is also steadily increasing, which will ensu...

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 (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

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

The care sector is very profitable. However, the profit margin varies greatly from provider to provider. While non-profit facilities do not aim to make a profit, private prov...

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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 (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

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

What is the market size of the Residential Care Activities industry in Germany in 2025?

The market size of the Residential Care Activities industry in Germany is €65.9bn in 2025.

How many businesses are there in the Residential Care Activities industry in Germany in 2025?

There are 6,289 businesses in the Residential Care Activities industry in Germany, which has grown at a CAGR of 0.4 % between 2020 and 2025.

How may import tariffs affect the Residential Care Activities industry in Germany?

The Residential Care Activities industry in Germany is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Residential Care Activities industry in Germany?

The Residential Care Activities industry in Germany is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Residential Care Activities industry in Germany grown or declined over the past 5 years?

The market size of the Residential Care Activities industry in Germany has been growing at a CAGR of 0.5 % between 2020 and 2025.

What is the forecast growth of the Residential Care Activities industry in Germany over the next 5 years?

Over the next five years, the Residential Care Activities industry in Germany is expected to grow.

What are the biggest companies in the Residential Care Activities industry in Germany?

The biggest companies operating in the Residential Care Activities industry in Germany are Korian Gruppe, Cidron Atrium SE and Emeis Gruppe

What does the Residential Care Activities industry in Germany include?

Outpatient care and Assisted living are part of the Residential Care Activities industry in Germany.

Which companies have the highest market share in the Residential Care Activities industry in Germany?

The company holding the most market share in the Residential Care Activities industry in Germany is Korian Gruppe.

How competitive is the Residential Care Activities industry in Germany?

The level of competition is low and steady in the Residential Care Activities industry in Germany.

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.

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