Medical Tourism Market Projected to Surge to USD 74.37 Billion by 2031
Overview
The global medical tourism market, valued at USD 12.16 billion in 2023, is expected to skyrocket to USD 74.37 billion by 2031, growing at a compound annual growth rate (CAGR) of 25.4% from 2024 to 2031. Significant differences in healthcare costs between countries and advancements in medical treatments drive this growth.
What is Medical Tourism?
Medical tourism involves traveling to another country for medical care. This includes various services such as surgeries, dental care, cosmetic procedures, and alternative therapies. Both public and private healthcare providers are attracting international patients by offering affordable, high-quality services.
Key Drivers of Growth
- Cost Differences: High healthcare costs in developed countries drive patients to seek affordable treatments abroad. For instance, a heart bypass surgery can cost $144,000 in the U.S. but only $7,000 to $13,000 in countries like Thailand, Mexico, or Turkey.
- Specialized Treatments: Demand for specialized and innovative treatments also contributes to the growth of medical tourism.
- Emerging Markets: Countries like Mexico, Turkey, Thailand, and India have long been famous for medical tourism. Emerging markets like the UAE, Malaysia, Singapore, and South Korea are now becoming regional healthcare hubs.
Innovations Enhancing Medical Tourism
- Digital Health Services: TeleHealth services facilitate pre-arrival consultations and post-op follow-ups, making the medical journey smoother for patients.
- Concierge Services: Many providers offer luxury recovery retreats, VIP airport services, and multilingual support, enhancing the overall experience.
- New Treatments: Cutting-edge treatments like cellular therapies and regenerative medicine attract patients seeking locally unavailable advanced care.
Regional Insights
- Asia-Pacific: Expected to capture over 40% of the market by 2031, with a growth rate above 28% CAGR. Countries like China and India are significant contributors due to their large outbound populations seeking affordable healthcare.
- North America: Will remain the largest source of outbound medical tourists.
- Latin America, Middle East, and Europe: These regions are also poised for growth by offering niche specialized services and unique cultural experiences.
Conclusion
The medical tourism market is set for transformative growth due to cost disparities, the aging global population, and rising chronic illnesses. Despite challenges in standardizing quality and travel logistics, the sector will continue to expand, reshaping global healthcare access and spending.
Glossary
- CAGR (Compound Annual Growth Rate): The rate of return that would be required for an investment to grow from its beginning balance to its ending balance.
- TeleHealth: Using digital information and communication technologies to access healthcare services remotely.
- Regenerative Medicine: A field of healthcare focused on creating techniques to regenerate, heal, or substitute cells, organs, and tissues that are damaged or afflicted by disease.
- Pricing Arbitrage: Considering the price difference between two or more markets.
Credit
This article is based on information from SNS Insider Pvt. Ltd. You can read the original article here.