Market Scenario
The global medical tourism market size was valued at USD 16.19 billion in 2022, and is expected to reach USD 43.60 billion by 2031, growing at a CAGR of 11.9% during the forecast period, 2023-2031.
One of the major driving factors behind the growth of this industry is the availability of affordable treatment costs in countries like India, Thailand, and Mexico, which are some of the most popular destinations for medical tourists. Moreover, the latest medical technologies, highly-skilled doctors and a lesser waiting period for treatment are also key factors that make these countries attractive for medical tourism.
Another important factor that is driving the growth of the medical tourism industry is the increase in demand for elective procedures and complex surgeries. Many people are willing to travel across international borders in order to undergo these treatments, as they may not be available or may be prohibitively expensive in their home countries.
However, as with any rapidly-growing industry, there are also potential risks and challenges associated with medical tourism. These include concerns around quality of care and safety, as well as issues surrounding regulatory oversight and accountability. Additionally, medical tourism can exacerbate existing inequalities in access to healthcare, as those who can afford to travel for treatment may be prioritized over those who cannot.
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Market Dynamics
Drivers
Increased Accessibility to Affordable Healthcare
Increased accessibility to affordable healthcare is a significant driver of medical tourism. Many countries around the world offer medical treatments at much lower costs than developed countries. This affordability has made medical tourism an attractive option for patients who are seeking quality care at a lower cost. Patients from developed countries often travel to countries such as Thailand, India, and Mexico, where they can receive high-quality medical treatments at a fraction of the cost of receiving the same treatment in their home country. This has led to an increase in medical tourism, and as healthcare costs continue to rise in developed countries, more patients are expected to seek medical treatments abroad.
One of the main advantages of medical tourism is that it allows patients to save a significant amount of money on expensive medical procedures. For example, a heart bypass surgery in the United States can cost upwards of $100,000, while the same surgery in India can cost as little as $10,000. This cost savings is a major driver of medical tourism, and it has allowed patients to receive the care they need without having to worry about the high costs associated with medical treatments.
Emergence of Medical Tourism Facilitators
The emergence of medical tourism facilitators is a significant driver behind the growth of the medical tourism industry in recent years. These facilitators are essentially companies or organizations that specialize in providing a range of services that help patients plan and organize their medical trips abroad. The services provided by medical tourism facilitators are varied and may include things such as travel arrangements, medical appointments, visa assistance, and translation services.
One of the main benefits of using a medical tourism facilitator is that they can help patients navigate the complexities of medical tourism. Traveling to another country for medical treatment can be a daunting experience, and there are many factors to consider, such as language barriers, cultural differences, and differences in medical practices and regulations. Medical tourism facilitators have expertise in these areas and can help patients navigate these challenges, providing peace of mind and ensuring that the medical trip runs smoothly.
Restrain
Limited Insurance Coverage
While medical tourism has many advantages, there are also significant restraints that can limit its growth. One of the main restraints of medical tourism is limited insurance coverage. Many insurance companies do not cover medical procedures performed abroad, which can make it difficult for patients to afford medical treatments. Patients may be required to pay out of pocket for medical treatments, which can be a significant financial burden for many people. This can act as a barrier to medical tourism, as it limits the potential market for the industry.
The lack of insurance coverage for medical treatments performed abroad can be due to various reasons. Firstly, insurance companies may not have a network of healthcare providers in foreign countries, which makes it difficult for them to provide coverage for medical treatments. Secondly, insurance companies may be concerned about the quality of care that patients receive when they travel abroad for medical treatments. In some cases, patients may not receive the same level of care as they would in their home country, which can lead to complications and additional medical expenses.
Segmental Analysis
By Treatment Type
Based on treatment type, oncology treatment to capture about 24% revenue share of the global medical tourism market. This is due to the increasing prevalence of cancer worldwide, as well as the growing availability of advanced and specialized cancer treatments in various countries. Medical tourists who seek oncology treatment may do so in order to access more affordable or advanced treatments that may not be available or covered by their health insurance in their home country. Additionally, medical tourists may travel to receive treatment from renowned cancer specialists or at world-class cancer treatment centers located in other countries.
The demand for oncology treatment among medical tourists is expected to continue to grow in the coming years, as the global burden of cancer is projected to increase. However, it is important to note that the COVID-19 pandemic has also had an impact on medical tourism, as many countries have implemented travel restrictions and other measures that have disrupted the industry. As such, it remains to be seen how the global medical tourism market, and oncology treatment in particular, will be affected in the long term.
By Service Provider
By services provide, private hospitals to contribute more than 94% revenue to the medical tourism market. This is primarily due to the fact that private hospitals typically offer more advanced and specialized medical treatments than public hospitals or other healthcare facilities. Additionally, private hospitals often provide a more comfortable and personalized patient experience with a range of amenities and services.
Medical tourists often choose to seek treatment at private hospitals in other countries to access these advanced treatments and services, as well as to take advantage of more affordable prices. Some private hospitals even offer package deals that include travel and accommodation.
However, it's important to note that the COVID-19 pandemic has had a significant impact on the global medical tourism industry, including on private hospitals. Many countries have implemented travel restrictions and other measures to control the spread of the virus, which has resulted in a decline in medical tourism. As such, the long-term impact of the pandemic on the industry remains to be seen.
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Regional Analysis
North America is one of the largest tourism markets in the world. According to the World Tourism Organization (UNWTO), North America (which includes the United States, Canada, and Mexico) was the third most visited region in the world in 2022, with a total of 137 million international tourist arrivals.
In terms of tourism revenue, North America is also a significant contributor to the global market. The World Travel and Tourism Council (WTTC) estimates that in 2019, the travel and tourism industry in North America generated $1.1 trillion in GDP and supported 34.2 million jobs. The WTTC also projected that North America would continue to be a major contributor to the global tourism market, with its share of global tourism GDP expected to remain above 40% through 2029.
However, it's important to note that the COVID-19 pandemic has had a significant impact on the global tourism industry, including in North America. Many countries have implemented travel restrictions and lockdowns to control the spread of the virus, which has resulted in a sharp decline in international tourism arrivals and tourism revenue. It remains to be seen how quickly the industry will recover and whether it will return to pre-pandemic levels.
Top Players in the Global Medical Tourism Market
Market Segmentation Overview
By Treatment Type
By Service Provider
By Region
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