Medical Tourism Market Size (2023 – 2030)

The Global Medical Tourism Market was valued at USD 12.01 billion and is projected to reach a market size of USD 56.66 billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 21.4%. 

Medical or Health Tourism is a constantly evolving industry and has been a rising global phenomenon in the 21^st Century and with the advent rise in the industry it has attracted both the academic and the professional communities. With the continuous growth of the industry, the demand for international healthcare is on the rise, and is anticipated to witness more career opportunities over the next decade in the healthcare and travel industry. Therefore, it becomes crucial for the leaders to continue to develop new skill sets and achieve a deeper understanding of all of the macro and micro factors affecting medical tourism, without losing sight of the bigger picture.

Key Market Insights:

As per a report published by Medical Tourism Association (MTA) in 2021, every year, almost over 14 million individuals travel to other countries for medical attention and care. Therefore, the increasing number of tourists for regular health check-ups and procedural treatment is motivating the growth of the global medical tourism market. Some of the regions have very low costs for the treatment of diseases.

Singapore receives almost 500,000 medical tourists with Indonesia resulting in half of them, every year. As a result, rapid growth in the volume of medical tourists is estimated shortly.

In Thailand, open heart surgery costs around $13,000 when compared to $113,000 in the U.S. A hip replacement procedure in Thailand costs about $7,800 contrary to $50,000 in the U.S., as per Apollo Hospitals’ record.

Cosmetic surgery treatments cost in the range of $4,500 to $12,500 on average in the US. As a result, a massive number of people desiring cosmetic surgery prefer traveling overseas to receive the same level of treatment and care at a 50% lower cost. Thus, all of these factors result in the growth and expansion of the global medical tourism market. 

However, within the destination countries, it can lead to an internal drain of trained medical workforces from the rural to urban regions and from the public to the private sector in search of better opportunities.

Medical Tourism Market Drivers:

The high-quality treatment at affordable and comparatively low-cost is propelling the global medical tourism industry.

In several developing nations such as Malaysia and Thailand, a high-quality treatment facility can be enjoyed at a lower cost, as compared to that in developed countries. Even though the cost of procedures and treatments in developing countries is comparatively minimal, the quality is not at all compromised in every treatment procedure due to the abundance and ease of availability of resources at relatively lower prices. This factor results in the inflow of people looking for health services in these countries. Additionally, developing nations are known to have well-known surgeons, which appeal to millions of patients every year for several treatments. The overall cost of medical treatments in Malaysia is almost 30% to 40% lower than that in developed countries such as the U.S., UK, and other European economies. Therefore, developments in healthcare infrastructure facilities and the accessibility to high-quality healthcare services at affordable prices will fuel global market growth.

 The long waiting time is a major concern and is augmenting the tourism business in the medical sector.

In several developed countries such as the UK or Canada, there is a long waiting period between the appointment and further procedures, which may sometime worsen the situation for some patients. Also, delaying some necessary treatments might deteriorate pre-existing conditions, and may lead to other complications. For example, delaying hip replacement surgery can lead to weakening of the hip joint, limiting mobility, and result in an increase in pain where hip resurfacing, would no longer be an option for the patient.

The increasing incidence of diseases is fueling the global medical tourism market.

The increasing burden of diseases among the population, especially the geriatric population, along with the introduction of advanced medical technologies for the treatment of various chronic health disorders is driving the demand for medical tourism, worldwide. The support and assistance extended by the government and the tourism department of the source and the host destinations are predicted to significantly augment the market growth. People look for medical tourism due to the expensive treatment or the long waiting time in their home country or the non-availability of any treatment. Therefore, to accomplish fast and affordable medical treatment people tend to opt for medical tourism outside their home country. Moreover, the surging awareness regarding medical tourism and the increasing affordability of advanced medical treatments is a primary factor behind the escalating demand for medical tourism.

The increasing governmental investment in medical infrastructure and maintenance is fuelling the global medical tourism market growth.

The surging level of governmental investments to build robust, strong, and advanced healthcare facilities is propelling the medical tourism market. The favorable government policies, growing investments for the improvement of air connectivity and other transport mediums, and several initiatives to promote medical tourism are the main factors that contribute hugely to the development of the global market. Moreover, the easily available information regarding facilities and treatments of various diseases, cost, and best destinations for the treatment plays a chief role in spreading awareness regarding medical tourism among the population. Furthermore, the obvious lack of an adequate number of specialized health professionals results in increased medical tourism. Various health professionals undertake tourism activities to perform certain surgeries that require specialization or special knowledge to be conducted.

Medical Tourism Market Restraints and Challenges:

The long and hectic reimbursement process of insurance and problems associated with the language and visa are one of the major restraints for the market.

Some private hospitals charge unreasonable fees for treatments and surgeries and patients who do not have their health insurance covered face a lot of problems eventually. And patients who have already covered themselves with a health plan face problems related to their insurance coverage policies and their reimbursement process as many insurance companies have complicated structures and sometimes may refuse to cover the patient’s full insurance sum for foreign treatments. And in some cases, they only cover the treatment expenses if they are cheaper in other countries and may not cover the airfare and miscellaneous expenses. Hence, people prefer to stay in their own respective countries for treatment which affects the medical tourism industry. Also, people may face difficulties associated with language, documentation, and the visa approval process further hindering market growth. Additionally, one of the key challenges limiting the market’s expansion is the absence of appropriate follow-up care for patients.

Medical Tourism Market Opportunities:

People travel to different places for specialized treatment for cancer, cardiovascular disease therapy, orthopedic treatment, dental treatment, and so on. The global medical tourism business is increasing owing to the easy accessibility of assets and financial resources. People get access to several health and medical insurance from different financial and insurance companies in which medical travel is covered fully or partially by several insurance policies.

MEDICAL TOURISM MARKET REPORT COVERAGE:

Medical Tourism Market Segmentation: By Treatment Type

• Orthopedic Treatment

• Cosmetic Treatment

• Cardiovascular Treatment

• Bariatric Treatment

• Ophthalmology Treatment

• Dental Treatment

• Infertility Treatment

• Alternative Medicine

• Others

In 2022, based on the treatment type, the cosmetic treatment segment accounted for the largest revenue share by almost 24.1% and has led the market. Several other factors such as rising patient awareness, growing demand for various anti-aging treatments, and the surging cost of cosmetic treatments and implants in developed nations are propelling the market growth.

Asia-Pacific, especially Thailand has become a hub for cosmetic procedures. It is mainly chosen for bariatric and cosmetic surgeries. Some of the most common procedures performed in Thailand comprise laser tattoo removal, breast augmentation, hair transplantation, botox, and liposuction. Alternatively, medical procedures such as gastric bypass, knee replacement, and hip replacement, are more reasonable in India.

The cardiovascular treatment segment is another segment that currently holds about 4.27% of the global market share in 2022 and is predicted to be set as the most opportunistic segment during the outlook period. The alarmingly increasing number of cardiovascular cases and the number of deaths due to it is fuelling the growth of this segment. According to the World Health Organization, cardiovascular deaths account for almost 32% or 17.9 million of the total deaths every year worldwide. This can be attributed to the sedentary lifestyle of people and unhealthy food choices. Additionally, the rising intake of tobacco and physical sedentariness are the primary reasons for cardiovascular diseases.

Medical Tourism Market Segmentation: By Service Provider

• Public

• Private

In 2022, the private segment dominated the global market and accounted for the highest market share of around 53.2% and is further anticipated to be the fastest-growing segment with a CAGR of 26% from 2023-2030. This can be owed to several factors such as the implementation of cutting-edge healthcare technologies and the suitability of internationally cultivated and accredited private care hospitals are causing high growth to the segment. Additionally, the private sector offers faster services and more privacy than the government sector.

Medical Tourism Market Segmentation: Regional Analysis:

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

In 2022, the North American region dominated the global medical tourism market with a revenue of 21.4%. The market growth can be owed to the increasing number of tourists in the U.S. for the treatment of cardiological and orthopedic disorders. The U.S. used up $3,930 million on incoming medical tourism in 2019, according to the World Travel and Tourism Council report. This is hugely boosting the development of the medical tourism market in the region. 

Europe is also an important market with a prominent market share. The factors such as the increasing development of medical facilities and organization in countries such as France, the U.K., and Spain and the rising trend of medical tourism are driving the growth of the medical tourism market in Europe.

However, the Asia-Pacific region is anticipated to grow at the fastest CAGR of about 15.87% during the forecast period.  Asian countries are seen as the top choice for medical tourism and travel owing to the low cost of treatments. India is considered to be the world’s tenth most popular tourist place for medical tourism, as per the Medical Tourism Index. As a result, it is boosting the growth of the market in the Asia-Pacific region. Thailand is one of the most prevalent destinations for medical tourism. Its popularity is augmenting its market growth. Thailand currently has almost 400 private hospitals, a number that is likely to rise substantially in the forthcoming years.

COVID-19 Impact Analysis on the Global Medical Tourism Market:

With the emergence of the COVID-19 outbreak in 2019, it has resulted in stricter restrictions in almost all sectors to avoid the spread of the virus. Due to the shutdown of travel and country borders, the rate of tourism resulted in a steep reduction of about 84% in the Asia-Pacific region in the year 2020. However, it is anticipated to return to normal levels by 2024 due to the reopening of the economy and an increase in patient visits.

Latest Trends/ Developments:

The global medical tourism market is reasonably split and fragmented with the existence of several global companies. These players are motivated to achieve higher market share by implementing different strategies, such as acquisitions, partnerships, and investments. Companies are also spending heftily on the development of improved products and infrastructure facilities alongside maintaining competitive pricing. This has further resulted in increased government engagement and the advancement of health tourism.

Additionally, the travel industry recently has witnessed remarkable progress along with health tourism, with many tour and travel agencies arranging trips, stays, and holidays for tourists for their stay, during as well as after their treatment plans. These agencies work in cooperation with the patient’s medical condition as well as social and religious beliefs when arranging these trips, in this manner backing the medical tourism sector in a salient manner. Health tourism specialists and travel agencies assist with all the mandatory travel and stay arrangements for tourists seeking medical care. They work together with the healthcare provider to plan out details of the travel, including visas, flights, lodging, insurance, currency exchange, etc. For instance, in 2020, OYO launched one-stop travel assistance, in collaboration with SRL Diagnostics, Indus Health Plus, and 1Mg for enabling tests through ICMR-approved pathology labs.

Key Players:

1. Aditya Birla Memorial Hospital,

2. Apollo Hospitals Enterprise

3. Asian Heart Institute

4. Barbados Fertility Center

5. Fortis Healthcare Limited

6. Raffles Medical Group

7. NTT Medical Center Tokyo

8. Prince Court Medical Centre

9. Samitivej PCL

10. Seoul National University Hospital

11. Wooridul Spine Hospital

In December 2021, Raffles Hospital, a subsidiary of Raffles Medical Group, announced a strategic collaboration with Myongji Hospital to offer a Travel Medicine Pass for travelers between the route of Singapore and South Korea.

In October 2021, BC Platform, an expert on the data science solution and a global leader extended its partnership move with Bumrungrad Hospital, Thailand, to fast-track the medicine adoption process in the South East region.