Exhibiting a remarkable growth over the last few years, the global medical tourism market is flocked by several large and small players, which has rendered its vendor landscape highly competitive. Due to its moderately fragmented vendor landscape, the global medical tourism market is likely to witness a flurry of branding activities taken up by various companies. Besides this, vendors are also looking to penetrate into emerging markets to expand their regional footprint. As an outcome of policies adopted by companies to boost their share will augment competitive rivalry even further in the coming years. According to Transparency Market Research (TMR), the companies operating in the medical tourism market are likely to invest in technological innovations and product portfolio in the coming years. Several companies are also expected to engage in strategic collaboration to strengthen their foothold in the global medical tourism market.
According to TMR, the global medical tourism market, which stood at US$46.46 bn in 2016, is likely to reach US$160.8 bn by the end of 2025. Given the scenario, the global medical tourism market will exhibit a CAGR of 14.9% between 2017 and 2025. Regionally, Asia Pacific held the lead in the global medical tourism market in 2016. Singapore and India are likely to emerge as popular destinations for medical tourism in Asia Pacific. Based on treatment, the global medical tourism market was led by the orthopedics segment in 2016.
Emerging Nations in Asia Identified as Hot Bed of Medical Tourism
Countries in Southeast Asia offer state-of-art medical facilities at a much cheaper cost than that of developed nations. Furthermore, persistent initiatives by governments across emerging nations to upgrade their healthcare infrastructure will synergize the medical tourism industry in the region. “Considering vast benefits offered by the medical tourism sector, an increasing influx of ailing people from neighboring nations is witnessed in these countries,” revealed a lead TMR analyst. “This will boost the regional healthcare industry, in turn creating lucrative prospects for the global medical tourism market,” he added. During the course of the report’s forecast period, the market will witness accelerated pace of gains. Supportive government laws and initiatives aimed at encouraging the nation’s healthcare sector will augment the medical tourism market in the coming years.
The mounting healthcare costs in developed nations compel people to seek treatment from developing nations such as India, Thailand, Singapore, and Costa Rica. OECD has recently estimated that nearly 50 million medical tourists travel to the emerging nations annually. Furthermore, it was states by the American Society of Plastic Surgeons that over 17 million cosmetology procedures were conducted in the U.S. alone in 2016. In addition, the International Society of Aesthetic Plastic Surgeons stated in a recently published report that a 9% increase was noted in the surgical and non-surgical cosmetic procedures conducted around the world last year. All these findings are indicative of lucrative prospects awaiting the global medical tourism market. Besides this, the number of hospitals accredited by Joint Commission International (JCI) has spiked in the last couple of years. The top countries attracting medical tourism in Asia such as India, China, South Korea, Thailand, Japan, Singapore, Philippines, and Malaysia boast over 300 JCIs. The likelihood of this number to surge in the coming years fuels opportunities for the global medical tourism market.
Soaring Healthcare Costs Could Restrict Growth
On the flip side, the inflation witnessed by the medical sector in 2015, followed by the waning number of medical travelers could restrict the market’s trajectory to an extent. Besides this, challenges related to generation of low revenue per patient, coupled with the rising cost of healthcare, will pose threat to the market in the coming years.
This review is based on a TMR report, titled “Medical Tourism Market (Medical Treatment - Cosmetology, Dentistry, Cardiology, Orthopedic surgery, Neurology, and Oncology) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2025.”
The report segments the global medical tourism market as:
Medical Tourism Market, by Medical Treatment
- Cosmetic surgery
- Orthopedic surgery
Medical Tourism Market, by Geography
- North America
- Asia Pacific
- Latin America
- Middle East & Africa