The Signal: It’s estimated that 22% of the total US population will be over the age of 65 in 2050, compared to 16% in 2019, driven by longer life expectancies and slowing birth rates. This is not surprising given that 10k baby boomers will turn 65 every day for the next 19 years. Baby boomers, currently between 56 and 76 years old, are the second-largest age group in the US after millennials.
The longevity revolution is a global phenomenon. Almost every country in the world is experiencing growth in the size and proportion of people over the age of 65. The number of people over age 65 globally is expected to increase by 120% over the next 30 years, from 703m in 2019 to 1.5B in 2050, according to research conducted by the UN.
Tech literacy among this cohort is surprisingly high. In the US, the percentage of adults aged 50-64 and 65+ who use the internet is 88% and 73%, respectively. On average, baby boomers spend 5 hours a day looking at their smartphones, almost the same time as millennials (5.7 hours).
This combination of aging populations and high tech literacy creates fertile ground for companies in the elder tech industry, with Americans over 50 expected to spend upwards of $84B on technology products by decade’s end.
Opportunities range from mental and physical health services, caregiving, legal and financial services, and filling seniors’ accessibility needs. Among those, mental health is uniquely poised for growth, given the impact of COVID-19.
In a recent Signal, we explored how the pandemic has led to an increased awareness of mental-health issues for the wider population. But seniors, in particular, have experienced an acute spike in loneliness as a result of shelter-in-place orders.
One thing that’s helping seniors fill the socially distant void: online games. Over the past month, search interest in “online bridge” has soared. The 4-player game has declined in popularity since its height in the 1940s, when it was played in more than 40% of American homes. But as many as 25m Americans know how to play.
The game is predominantly popular with the 65+ demographic, and the average age of competitive bridge players in the US is 71. Bridge clubs are popular among retirees and can have hundreds or thousands of members.
Many of these players, to whom the game is an integral part of their weekly routines and social lives, are now going online to platforms such as Bridge Base Online (165k searches/month, according to Keywords Everywhere).
The Opportunity: While the use of Bridge Base Online is likely to wane as social distancing measures are relaxed, the increase in popularity of such platforms demonstrates the ability and willingness of seniors to go online for entertainment and social interaction.
There are many other opportunities for creative entrepreneurs to tackle the problem of social isolation and loneliness among older adults. Lifelike robotic pets, for example, have been developed to do exactly that. According to JungleScout, “Ageless Innovation Companion Pets” bring in monthly revenue of ~$170k on Amazon.
Startups facilitating or providing companionship to the elderly that have successfully raised funds in recent years include:
- Intuition Robotics has raised $58m since 2016. Their flagship product is ElliQ, a “social robot” that costs $1.5k, plus $35-$50 per month in subscription fees, depending on the tier of service. ElliQ offers tips and advice, responds to questions, and makes it easy for seniors to connect with family and friends.
- Papa has raised $13.2m for its “Grandkids on Demand” app. The service costs seniors $20 per hour, $12 of which is paid to the students (while $8 goes to Papa). In 2018 Papa had 600 registered students working 25 hours on average every month. This works out to average monthly revenue of $180k from those visits.
- Mon Ami raised $3.4m in seed capital in October 2019. The digital platform connects college students to seniors. Senior citizens are paired with a student companion for $25/hour, of which the student receives $20.
Lumen, an app-only dating platform for over-50s, raised ￡3.5m (~$4.3m) in September 2018. The app, which attracted more than 1.5m users in less than a year, is one of several popular dating platforms for the 50+ population. SilverSingles and OurTime both began as websites and have since developed apps. OurTime has reportedly seen a 146% increase in active users in the past 2 years, 63% of whom registered by mobile. (We did a full report on the $3B dating app industry here.)
The benefits of playing bridge and other games online is not only social. Many seniors play video games for entertainment, and to maintain and sharpen their cognitive skills. In some countries, 23% of people aged 55 to 74 play video games. In the US there were 51m senior gamers in 2019 who spent $3.5B in a 6-month time frame on games and accessories.
Entrepreneurs can capitalize on this growing market by introducing a classic, nostalgic game (such as bridge) into the 21st century, or by developing a gaming console, like TEPOS, designed specifically for the elderly.
Housing opportunities: Fewer than 10 years ago, it was almost impossible to imagine that people would be willing to rent out their homes, spare rooms, and couches to strangers. Now there may be an opportunity to apply a similar model to the growing market of seniors interested in home sharing.
The number of people over 65 living with unrelated roommates in America more than doubled, from 470k to 988k, in the 10-year period from 2006 to 2016. Home-sharing arrangements for seniors are gaining popularity worldwide as they help older adults combat loneliness while also saving money on rent.
HANZA, in Australia, facilitates cross-generational co-living by matching seniors with people who are willing to lend a hand in return for accommodation. Nesterly does the same thing in the US. Silvernest matches senior homeowners with renters in a similar age bracket.
Entrepreneurs could build a home-sharing matching and pairing platform, or provide ancillary services such as background checks, a tool that simplifies home-sharing agreements, or a rent collection service.
Opportunities in elder tech go far beyond mental health, cognitive functioning, and entertainment. Check out this 10-page deck we put together on other opportunities in the elder tech space.
Leave a Comment