Care Market Accounting for 9% of Global GDP... 'AgeTech' Attracts Investment

'2024 Global Senior Trend Forum'

"According to the United Nations (UN) and the International Labour Organization (ILO), the care market accounts for 9% of the global GDP. The market size reaches 11 trillion dollars, and approximately 250 million workers are engaged in care-related jobs, making up 6.5% of the total workforce."

Do Hyun-kyu, CEO of Flyon, presenting the current status of the European senior industry at the '2024 Global Senior Trend Forum'.

At the '2024 Global Senior Trend Forum' held on the 24th at Front1 in Mapo-gu, Seoul, Dohyun Kyu, CEO of FlyOn, stated this and confidently predicted that the care market will grow even larger in the future. He said, "In Europe, where aging has already progressed significantly, the care market is growing very actively," adding, "There is a large amount of investment, and the market itself is becoming more advanced."

CEO Doh predicted that the care robot market will grow rapidly in 10 years. This involves addressing the shortage of care personnel by integrating care functions into robots. However, he expressed concern that since this is a 'technology' area requiring high development costs, polarization could occur even within the care sector. He explained, "It will take time for care robots to advance to a commercialized level."

He also explained that rapid scaling and growth are occurring in the senior housing sector. CEO Doh said, "In Europe, large nursing homes have already become big corporations," and added, "Orpea, which can be considered the leading senior care facility company in Europe, recorded sales slightly over 3.1 billion euros in 2018 and succeeded in achieving about 4.7 billion euros in sales in 2022." This means it grew by more than 50% in four years.

CEO Doh emphasized that despite European countries entering a super-aged society and the related industries developing, the senior market in Europe is not a 'red ocean.' He said, "Since senior employment and retirement age extension have become the trend in Europe, the expected scale of investment in the future is much larger."

Iboram, CEO of Third Age, presenting on Japanese senior business at the '2024 Global Senior Trend Forum'.

At the event, senior business in Japan, considered a future version of our country in terms of demographic structure, was also introduced. Boram Lee, CEO of Third Age, said, "There are similarities between Japan and us in that aging has progressed too quickly without adequate preparation," and explained, "However, Japan, which is ahead, is actually at the stage where senior business is 'profitable.'"

While Korea's elderly population has not yet exceeded 10 million, Japan's senior population is 36 million, accounting for more than 25% of its total population, making the senior market larger and business models more diverse. CEO Lee added, "In Japan, various senior businesses are active, ranging from senior-friendly food to business models that find suitable successors when elderly entrepreneurs' children do not want to inherit the business."