Market Overview

The Portugal Elderly Care Services Market size reached USD 3,286.14 Million in 2025 and is projected to grow to USD 6,173.61 Million by 2034. It is expected to grow at a CAGR of 7.26% during the forecast period 2026-2034. The market growth is driven by demographic shifts, government investments in palliative and long-term care infrastructure, and the expansion of digital health and telemedicine platforms enabling remote monitoring and consultation.

Study Assumption Years

• Base Year: 2025
• Historical Years: 2020-2025
• Forecast Period: 2026-2034

Portugal Elderly Care Services Market Key Takeaways

• The market size reached USD 3,286.14 Million in 2025 and is forecasted to reach USD 6,173.61 Million by 2034, exhibiting a CAGR of 7.26% during 2026-2034.
• Government initiatives such as the Plan for Recovery and Resilience are accelerating investments in palliative and long-term care infrastructure.
• Digital health transformation is a major growth driver, with Portugal achieving a 40% increase in composite eHealth scores in 2024.
• Aging in place initiatives are expanding home care services to support elderly individuals in familiar environments, aligned with their preferences.
• The market faces challenges including severe healthcare workforce shortages and regional disparities that affect service equity.
• High out-of-pocket costs for elderly care services limit affordability and access for many middle-income elderly individuals.

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Market Growth Factors

Government Investment Driving Palliative and Long-Term Care Infrastructure Expansion

Portugal is witnessing substantial government investment to meet the growing demand for elderly care services caused by demographic shifts. Approximately 24% of Portugal's residents are currently over 65, with projections reaching 34% by 2050. To address this, the Plan for Recovery and Resilience is funding strategic infrastructure developments. Specifically, in April 2025, the government signed 90 financing contracts worth €88 million to create 3,300 new places for palliative care. The majority of these new beds are allocated to the Norte region (1,179 beds) and Centro region (1,617 beds), followed by smaller allocations in Algarve and Lisbon. This comprehensive initiative also includes creating long-term care beds, mental health beds, and home-based care support, reflecting a strategic approach to managing demographic pressures and ensuring equitable access across regions.

Digital Health Transformation Enabling Telemedicine and Remote Care Delivery

Portugal is rapidly advancing digital health capabilities that reshape elderly care delivery models. The country achieved a 40% increase in composite eHealth scores in 2024 and nearly complete prescription dematerialization at 98.5%. With about one-quarter of health investment in the Recovery and Resilience Plan dedicated to digital health, technologies such as telemedicine have been integrated into the National Health System since 2006 and are reimbursed like in-person consultations. The National Strategic Telehealth Plan emphasizes patient empowerment through telemonitoring, enabling real-time health data collection and proactive interventions. These developments improve resource utilization, reduce geographic access barriers, and support market growth by expanding care reach to underserved populations.

Aging in Place Initiatives and Home Care Services Expansion

Responding to demographic trends and patient preferences, Portugal prioritizes aging in place strategies that allow elderly individuals to remain in their homes. The Domiciliary Support Service, provided by non-profit institutions, offers personalized care such as hygiene assistance, meal delivery, laundry, transportation, and nursing support. Research reveals that 40% of Portuguese seniors over 65 spend eight or more hours daily alone, with 321,000 experiencing extended isolation, underscoring the importance of home-based social and care services. Government policies actively promote home care expansion through collaboration between municipalities, regional health administrations, and non-profits. Portugal endorsed the Lisbon Outcome Statement in 2024 and is launching a National Programme for Age-Friendly Cities and Communities in early 2025. Additionally, eligible informal caregivers receive monthly subsidies and training. These efforts align with community-based care models aimed at maintaining elderly independence and dignity.

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Market Segmentation

By Service Type:

• Adult Day Care: Includes care services provided during daytime, supporting elderly individuals who live at home but require assistance or supervision during the day.
• Institutional Care: Encompasses care provided in residential facilities such as nursing homes and long-term care institutions, delivering comprehensive support for elderly residents.
• Home Care: Consists of individualized, home-based services like hygiene assistance, nursing, meal delivery, and social support facilitating aging in place.

By Application:

• Respiratory Diseases: Elderly care services addressing chronic respiratory conditions.
• Diabetes: Care management and support for diabetic elderly individuals.
• Osteoporosis: Services targeting bone health and fracture prevention in elderly patients.
• Heart Diseases: Care for elderly patients with cardiovascular conditions.
• Neurological Diseases: Support services for neurodegenerative diseases common in aging populations.
• Kidney Diseases: Care related to renal health issues in elderly.
• Arthritis: Treatment and management of joint inflammation and related disorders.
• Cancer: Elderly care services addressing cancer treatment and palliative care.

By Service Provider:

• Private: Services offered by private sector entities, including for-profit and non-profit organizations.
• Public: Government-operated elderly care services focusing on accessibility and affordability.

By Region:

• Norte
• Centro
• A. M. Lisboa
• Alentejo
• Others

Regional Insights

The Norte region dominates in the expansion of elderly care infrastructure, with 1,179 new palliative care beds created under recent government contracts. Centro follows closely with 1,617 beds. These regions benefit from significant allocation in the national network for integrated continuous care, addressing demographic pressures. Geographic disparities exist, with urban centers like Lisboa and Porto leading in specialized care access while rural and inland areas face critical shortages and inequity.

Key Challenges

• Severe healthcare workforce shortages have led to the departure of over 6,000 clinicians from the National Health Service between 2019 and 2024. Nursing staff face acute pressures with 1,689 nurses leaving in 2023 alone, driven by poor working conditions and better opportunities abroad.
• Regional disparities create inequitable access to elderly care, with rural areas lacking adequate infrastructure, workforce, and access to services compared to urban centers.
• High out-of-pocket costs for elderly care in Portugal limit affordability for many, especially middle-income populations, with publicly funded care mainly accessible to the poorest.

Competitive Landscape

The Portugal elderly care services market is fragmented, comprising public institutions, private non-profit organizations such as Misericórdias, and for-profit private enterprises focusing on premium segments. The National Network for Integrated Continuous Care collaborates with non-profit Private Institutions of Social Solidarity. Private operators grow in urban markets with luxury and memory care services, while public and non-profits focus on affordability despite capacity constraints. The market also attracts international retirement community operators and real estate investors due to demographic trends and Portugal's appeal as a retirement destination.

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Customization Note

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