The medical tourism market provides several benefits such as improved healthcare accessibility and cost efficiency. Rapidly advancing healthcare infrastructure and medical technologies in emerging nations have made them popular medical tourism destinations. In certain countries like India, Thailand, and Mexico medical care costs are almost 25 to 80% lower than developed nations for comparable treatments.
The global medical tourism market is estimated to be valued at US$ 32,733.7 Mn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period of 2023 to 2030.
Key Takeaways
Key players operating in the medical tourism market are Asian Heart Association, Apollo Hospitals Enterprise Ltd., Prince Court Medical Centre, Gleneagles Hospitals, Min-Sheng General Hospital, Raffles Medical Group, Bangkok Hospital, Fortis Healthcare Ltd., Anadolu Medical Centre and Wooridul Spine Hospital. These players are focusing on expanding their healthcare infrastructure to international patients and offering state-of-the-art medical facilities. The key opportunities in the market include growth in medical value travel, cost-effective treatment options, and emerging destination markets for medical tourism in Asia, Latin America, and Eastern Europe. Rapid adoption of new technologies such as robot-assisted surgeries, 3D printing, and artificial intelligence are fueling innovation in the healthcare industry and medical tourism.
Market Drivers
One of the major market drivers is the rising healthcare costs in developed countries. The growing gap between healthcare costs and individual spending capabilities in the US and other Western nations has boosted medical tourism. According to the International Federation of Health Plans, US healthcare costs are expected to rise at an average rate of 6% annually till 2023. Such inflated medical bills have encouraged patients to explore lower cost alternatives in other countries. Considerable savings of up to 80% for various treatments like knee replacement, hip resurfacing, and heart surgery procedures has made countries like India and Thailand top destinations for medical tourism.
Current Challenges in Medical Tourism Market
The medical tourism market is facing many challenges currently due to various factors. One of the major challenges is the lack of standardization and accreditation across the healthcare industry globally. This makes it difficult for patients to find reliable treatment options and hospitals in different countries. Language and cultural barriers also pose challenges for international patients seeking treatment abroad. Additionally, the pandemic has severely impacted the medical tourism industry over the last two years due to travel restrictions and closure of international borders. Recovery from the pandemic is expected to be gradual for the industry.
SWOT Analysis
Strength: The industry provides cost effective treatment options compared to developed countries and boosts the economy of developing countries.
Weakness: Lack of uniform standards and protocols. Language and cultural barriers also exist.
Opportunity: Growing healthcare infrastructure and needs of developing countries present huge growth opportunities. Digital technologies can help overcome geographical barriers.
Threats: Economic downturns and pandemics severely impact the industry. Terrorism and political instability in certain countries pose threats.
Geographical regions of concentration
North America is currently the largest market for medical tourism, accounting for around 35% of the global market share in terms of value. This is primarily due to the availability of advanced treatment options and infrastructure in countries like US and Canada.
Fastest growing geographical region
Asia Pacific region is expected to witness the fastest growth during the forecast period. Countries like India, Thailand, Singapore, South Korea are the top destinations due to availability of world-class healthcare at affordable costs. Rising medical infrastructure and initiatives by governments to promote medical tourism will drive the growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
