Medical Tourism Market By Treatment Type, By Service Provider, And Region for 2024-2031

Medical Tourism Market Valuation - 2024-2031

The need for specialized treatments, rising affordability, and improvements in healthcare technology are all contributing to the rapid expansion of the Medical Tourism Market. According to the analyst from Verified Market Research, the Medical Tourism Market is estimated to reach a valuation of USD 116.98 Billion in 2031, by subjugating around USD 30.85 Billion valued in 2023.

The availability of advanced medical infrastructure and the rise of telemedicine have made it easier to access healthcare services across borders, further propelling the market's expansion. It enables the market to grow at a CAGR of 20% from 2024 to 2031.

Medical Tourism Market: Definition/ Overview

Medical tourism is the practice of traveling to another nation for medical treatment, which includes a variety of healthcare services such as surgical, dental, and wellness operations. This trend enables people to seek care that is more economical, accessible, or specialized than what is available in their own country. Medical tourism can be used for elective surgery such as cosmetic procedures, dental work, reproductive treatments, and complicated surgeries like organ transplants.

What are the Primary Factors Driving the Growth of the Medical Tourism Market?

The rising expense of medical operations in wealthy countries is prompting patients to look for more affordable options abroad. The Centers for Medicare and Medicaid Services (CMS) report that healthcare spending in the United States exceeded USD 4.1 Trillion in 2020, or $12,530 per person. This accounts for 9.7% of the GDP. According to the Organization for Economic Cooperation and Development (OECD), the average health spending proportion of GDP in OECD countries increased from 8.5% in 2013 to 8.8% in 2018. This trend encourages patients to seek more affordable medical treatments in other nations.

Extended wait times for certain medical procedures in some countries are causing patients to travel abroad for quicker treatment. According to the Canadian Institute for Health Information (CIHI), the median wait time for hip replacement surgery in Canada in 2019 was 118 days, while knee replacement took 122 days. Similarly, the National Health Service (NHS) in England revealed that as of February 2020, 4.4 million patients were waiting for standard procedures, with 15.3% waiting more than 18 weeks. These lengthy wait times are prompting people to seek speedier treatment options via medical tourism.

Furthermore, many developing countries are investing considerably in healthcare infrastructure and hiring qualified medical experts, making them appealing destinations for medical tourism. The Indian Ministry of Tourism announced that the number of medical visas issued in India climbed from 66,254 in 2014 to 297,310 in 2019, marking a 348% rise in five years. According to Thailand's Tourism Authority, around 3.5 million medical tourists visited Thailand in 2019, producing $5 billion in income. This rise is due to the country's investments in cutting-edge medical facilities and highly skilled medical professionals.

How Do the Marketing Challenges Hinder the Demand for Medical Tourism?

The major marketing obstacles medical tourism providers encounter are one of the main barriers. Many firms deal with low brand awareness and inadequate marketing initiatives, resulting in fewer patient leads and referrals. This lack of exposure creates suspicion among potential patients, who are unwilling to seek care overseas without enough information about the quality and safety of the services provided. This, in turn, limits providers' capacity to effectively attract international patients.

Furthermore, the absence of adequate follow-up care for patients who return home after obtaining treatment overseas is a major barrier. Patients face challenges in treating postoperative complications and obtaining appropriate follow-up treatments from local healthcare providers, who are hesitant to accept cases performed by foreign practitioners. This gap in continuity of care resulted in poor health outcomes and lowered patient satisfaction, preventing people from seeing medical tourism as a feasible option.

Category-Wise Acumens

How Does the Growing Demand for Aesthetic Procedures Drive the Adoption of Cosmetic Surgery Treatment?

According to VMR Analysis, the cosmetic surgery segment is estimated to hold the largest market share during the forecast period. The growing global desire for aesthetic-enhancing procedures adds greatly to cosmetic surgery's dominance. As the cultural acceptability of cosmetic surgery grows, more people are choosing operations such as facelifts, liposuction, and breast augmentation. This trend is exacerbated by the influence of social media, where physical attractiveness is highly valued, pushing people to seek aesthetic improvements abroad at competitive prices.

Cost savings are an important factor in luring consumers to cosmetic surgery centers. Many people from high-cost healthcare countries discover that having treatments performed abroad can be much less expensive, even after accounting for travel costs. Countries known for their skill in cosmetic surgery provide high-quality services at a fraction of the cost of industrialized countries, making these options very enticing to medical tourists looking for economical yet effective solutions.

Furthermore, the development of minimally invasive methods has aided the growth of the cosmetic surgery segment. Botox and dermal fillers have gained popularity due to their efficacy and short recovery durations. These developments not only improve patient outcomes but also attract a larger demographic seeking less intrusive solutions, hence adding to the overall growth of medical tourism in this sector.

What are the Primary Factors Driving the Demand for Medical Tourism in Hospitals & Clinics?

The hospitals & clinics segment is estimated to dominate the Medical Tourism Market during the forecast period. Hospitals and clinics offer a wide range of medical services, such as modern surgical procedures, diagnostic tests, and post-operative care. This integrated approach ensures that patients receive all necessary therapies under one roof, thereby improving convenience and continuity of care. The capacity to provide customized services suited to specific medical demands draws a large number of overseas patients looking for comprehensive healthcare solutions.

Many hospitals in popular medical tourism locations are recognized by international organizations, providing high levels of treatment and safety. This accreditation instills trust in potential medical tourists, who value quality and safety while seeking treatment overseas. The reputation of these licensed facilities for providing high-quality healthcare strengthens their position as top choices for patients seeking medical services outside of their nations.

Furthermore, hospitals and clinics invest extensively in cutting-edge medical technology and infrastructure, allowing them to conduct complex procedures that would otherwise be unavailable or prohibitively expensive in patients' native countries. The availability of cutting-edge facilities and trained healthcare personnel increases the appeal of these institutions, attracting patients from all over the world looking for innovative therapies at reasonable prices. This technical advantage greatly helps hospitals' supremacy in the Medical Tourism Market.

Country/Region-wise Acumens

How is Advanced Healthcare Infrastructure Influencing the Demand in North America?

According to VMR analyst, the North American region is estimated to dominate the Medical Tourism Market during the forecast period. The high expense of healthcare in the United States is a primary factor driving outbound medical tourism from North America. Many Americans look for more cheap medical treatments abroad. According to a 2022 research by the Peterson-KFF Health System Tracker, health spending per person in the United States was $12,914 in 2021, about twice the average of $5,736 in other wealthy countries. This significant cost gap drives many Americans to seek medical care in foreign nations, where they can receive high-quality care at a lower cost.

Furthermore, long wait periods for elective treatments in Canada drive many Canadians to seek medical care elsewhere, such as in the United States. According to the Fraser Institute's 2022 report on Canadian healthcare wait times, the median wait time between referral from a general practitioner and treatment receipt in 2022 was 27.4 weeks. This is much longer than the 9.3 weeks observed in 1993 when the Institute first tracked wait times. Such lengthy waiting periods inspire Canadians to consider medical tourism for faster treatment.

What Factors Contribute to the Potential Opportunities in the Asia Pacific Region?

The Asia Pacific region is estimated to exhibit the highest growth within the market during the forecast period. The Asia Pacific region provides high-quality medical operations at much lower costs than Western countries, which attracts a large number of overseas patients.

According to a 2019 Medical Tourism Association report, major medical tourism destinations in Asia, such as Thailand and Malaysia, provide 50-70% discounts on medical operations when compared to the US. A heart bypass procedure, which costs an average of $123,000 in the United States, could be conducted for as little as $15,000 in Thailand while keeping identical quality standards.

Furthermore, many Asia Pacific countries are rapidly improving their healthcare infrastructure and implementing cutting-edge medical technologies, increasing their attraction to medical tourists. According to the World Health Organization's 2018 Global Health Expenditure Database, healthcare expenditure in the Asia-Pacific region increased at a 6.7% annual pace between 2000 and 2016, exceeding the global average of 4%. This increasing investment has resulted in the construction of cutting-edge medical facilities and the implementation of cutting-edge technologies, particularly in Singapore, South Korea, and India.

Competitive Landscape

The competitive landscape of the Medical Tourism Market is characterized by a varied range of companies, including healthcare providers, travel agents, and government entities, all of which contribute to a fragmented industry. This fragmentation leads to differing service standards and practices as stakeholders compete on aspects such as care quality, service range, and pricing methods.

Some of the prominent players operating in the Medical Tourism Market include:

Apollo Hospitals Enterprise Ltd., Fortis Healthcare, Bangkok Chain Hospital Public Company Limited, Hamad Medical Corporation, Bumrungrad International Hospital, KPJ Healthcare Berhad, Manipal Health Enterprises Pvt. Ltd., Raffles Medical Group, Jordan Hospital.

Latest Developments

In February 2024, the Ministry of Tourism announced the launch of a unified platform for health tourism, offering healing and medical services. The Tourism Ministry will collaborate with foreign specialists to identify Egypt's healthcare tourism attractions and develop a cohesive strategy to attract investments in the market.

In January 2024, Sunway Healthcare Group announced a partnership with PT JCB International Indonesia and JCB International Co., Ltd. (JCB) subsidiaries to promote medical tourism in Malaysia. The collaboration will introduce Sunway Healthcare Group's services to over 156.0 million JCB card members worldwide.

In May 2023, Advantage Healthcare Fortis Healthcare was recognized for making India a popular healthcare tourism destination.

Medical Tourism Market, By Category

• Treatment Type:
• Cosmetic Surgery
• Dental Treatment
• Orthopedic Treatment
• Cardiovascular Treatment
• Fertility Treatment
• Cancer Treatment
• Others
• Service Provider:
• Hospitals and Clinics
• Wellness Resorts and Spas
• Travel Agencies
• Region:
• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa