Medical Tourism Market

Medical Tourism Market Outlook 2031

• The global market for medical tourism  was valued at US$ 10.4 Bn in 2021
• The global market is projected to advance at a CAGR of 13.0% from 2022 to 2031
• The global medical tourism market is anticipated to reach more than US$ 72.8 Bn by the end of 2031

Analysts’ Viewpoint on Market Scenario

Increase in geriatric population and rise in adoption of sophisticated technologies are driving the global medical tourism business. Population aged 65 years or above is expected to double in the U.S. by 2050. This surge in geriatric population is anticipated to boost the demand for advanced and affordable care. Economic crisis in developed countries has led a decrease in expenditure on healthcare. Therefore, patients, insurers, health insurance agents, and employers seek medical services abroad.

Long waiting time in countries such as Canada, the U.K., and France is one of the key factors that induces patients to visit other healthcare destinations. Furthermore, favorable foreign currency exchange rates and rise in demand for cosmetic surgeries are propelling the outbound medical tourism services market. Companies are introducing new technologies such as medical tourism apps to further attract the global clientele.

Medical Tourism Market Introduction

Medical tourism is defined as the travel of patients from their home country to different destinations for medical treatment. These services include sophisticated treatments such as cardiac surgery, orthopedics, neurosurgery, and dental care or elective treatments such as cosmetic surgeries or even routine health check-ups. As per medical tourism market research, the rise in healthcare expenditure in developed countries and the availability of cost-effective treatments in developing countries have made medical tourism an emerging industry. Furthermore, the availability of medical tourism insurance is also driving the market. The high cost of treatment in developed countries is a major factor in the migration of patients to other destinations.

High-Quality Treatment at Low-Cost Augmenting Global Medical Tourism Industry

High-quality treatment can be availed at a lower cost in developing countries such as Thailand and Malaysia than in developed countries. Despite the low cost of treatment in developing countries, the quality of the procedure is not compromised due to the availability of resources at a relatively lower cost. This results in the influx of people who avail of health services in these countries. For instance, an angioplasty procedure costs around US$ 55,000 to US$ 57,000 for an individual in the U.S. compared to around US$ 2,500 to US$ 3,500 in Malaysia.

People travel from the U.S. to Thailand, Singapore, India, and Malaysia for medical treatments, saving 55% to 70% of their treatment expenses. The cost of dental treatment is lower by 60% to 80% in India than in the U.S. and the U.K. According to DentaVacation, a unit of U.S.-based Medical Tourism Corporation, the cost of dental fillings starts from US$ 150 in the U.S., while it costs only US$ 45 in Thailand, US$ 40 in Turkey, and US$ 20 in India. Thus, dental implant tourism is gaining prominence in developing countries such as India and Thailand.

People often go to other countries for medical operations such as breast augmentation and liposuction. Others choose to have extra skin removed. Several individuals go to seek additional elective treatments, such as LASIK eye surgery or dental operations, which are not covered by insurance policies in the West and can be prohibitively expensive in some countries. Thus, improvement in healthcare infrastructure and access to high-quality healthcare services at affordable prices are likely to drive the global market in the near future.

Long Waiting Time Propelling Global Medical Tourism Business

Long waiting time for appointments with specialists for treatment or consultation is a major concern among patients and is considered a significant driver of outsourcing. Patients are compelled to wait for health services owing to reasons such as lack of medical equipment, shortage of staff, or inefficient management. Furthermore, excessive waiting time could lead to adverse health effects. Patients in developed countries such as the U.K., France, Norway, Sweden, and Canada lack timely access to medical services. Hence, they may opt to travel to other destinations for medical services.

The average waiting period in Canada for patients undergoing cataract surgery, joint replacement surgery, and coronary artery bypass surgery (CABG) is 112 days, 182 days, and 71 days, respectively. If a person has to undergo a routine health examination, then the minimum waiting period is 32 days. Long waiting period presents a significant challenge to patients; hence, they prefer to travel abroad for timely surgery.

Increase in Incidence of Cardiovascular Diseases Fueling Cardiac Segment

In terms of procedure type, the cardiac segment held the largest share of the global market for medical tourism in 2021. This can be ascribed to the increase in the incidence of cardiovascular diseases across the world. According to the World Health Organization (WHO), cardiovascular diseases (CVDs) are the leading cause of death, with an estimated 17.9 billion people across the globe suffering from CVDs. According to data published by the Centers for Disease Control and Prevention (CDC), hypertension accounted for more than half a million deaths in the U.S. in 2019.

The cosmetic surgery segment is projected to grow at a rapid pace during the forecast period. A large percentage of the population opts for cosmetic surgery to improve looks and raise confidence. The rise in the impact of esthetics, influenced by media depictions of unattainable beauty standards, is anticipated to be a primary factor driving the cosmetic surgery segment. Furthermore, technical improvements in the segment have resulted in an increase in demand for esthetic procedures.

Regional Analysis of the Medical Tourism Market

Asia Pacific dominated the global market for medical tourism, with more than 75% share in 2021. The market in the region is highly competitive owing to the presence of technologically advanced medical specialties, less stringent government regulations, and attractive locations. Thailand and India are recognized internationally for high-end medical services and receive patients from across the globe. Singapore is renowned for its healthcare infrastructure and receives patients primarily for complex medical procedures.

As per the medical tourism market forecast, the market in Europe, the Middle East, and Africa (EMEA) is anticipated to advance at a CAGR of 12.2% from 2022 to 2031. Economic growth in countries in EMEA and a rise in government expenditure on advanced healthcare facilities are expected to drive the market in EMEA in the near future. Turkey has emerged as a potential medical service provider and is recognized as a competitive healthcare destination. The global healthcare economic crisis has played a key role in bolstering Turkey's health and medical tourism industry. The country's strategic geographic location provides it the added advantage of being able to treat patients from across the globe. Turkey is centrally located between Europe and the U.S.; hence, medical tourists find it convenient to travel to the country. Furthermore, the surge in demand for cosmetic surgery is propelling the global market in Turkey.

Countries in Latin America such as Brazil and Mexico attract a maximum number of patients from the U.S. owing to the geographic proximity and cultural similarities.

Analysis of Key Players in the Global Medical Tourism Market

Fortis Healthcare, Apollo Hospitals Enterprise Ltd., Bangkok Chain Hospital Public Company Limited, Hamad Medical Corporation, Bumrungrad International Hospital, KPJ Healthcare Berhad, Manipal Health Enterprises Pvt. Ltd., Raffles Medical Group, and Jordan Hospital are the prominent healthcare service providers operating in the global market for medical tourism. Medical tourism companies are leveraging new technologies and providing improved healthcare services through strategic initiatives and collaborations.

Key Developments in Global Medical Tourism Industry

• In October 2021, BC Platforms (BCP), a global leader in healthcare data management and analytics, expanded its partnership with Thailand's Bumrungrad International Hospital to accelerate precision medicine adoption in Southeast Asia
• In July 2018, Fortis Healthcare, a leading healthcare provider with over 20 hospitals, 4,000 operational beds, and 400 diagnostics centers in India, approved IHH Healthcare's investment proposal. This collaboration strengthened its market position and provided Fortis Healthcare with new growth opportunities.

Each of these players has been profiled in the medical tourism market report based on parameters such as company overview, financial overview, business strategies, product portfolio, business segments, and recent developments.

Global Medical Tourism Market Snapshot