Medical Tourism Market

Global Medical Tourism Market Size (2022 to 2027)

As per our recent report, the global medical tourism market size is forecasted to be worth USD 78.15 billion by 2027 from USD 33.03 billion in 2022, growing at a CAGR of 18.8% between 2022 to 2027. In 2020, the North American region accounted for the leading global medical tourism market share.

Global Medical Tourism Market Share Insights:

• The Turkish medical tourism market captured the global market share in 2021, approximately 24%.
• The medical tourism market in Thailand is anticipated to hold a considerable share of the global market during the forecast period. 
• CVDs and cancer segments are expected to hold dominating share by treatment type in the global medical tourism market in the coming future.

Medical tourism or Healthcare tourism is defined as traveling across countries to benefit the medical treatment of some form, which might not be accessible in the travelers' nation of origin. Medical tourism is considered the travel around international borders to avail medical treatment that is not available in their home country. These treatments include IVF fertility treatment, cancer treatment, neuro surgeries, orthopedic surgeries, etc. This treatment may incorporate a whole cluster of therapeutic services. However, the most frequently profited services include dental care, elective surgery, fertility treatment, and cosmetic surgery. Developed Countries like the United States, Germany, the United Kingdom, Singapore, Japan, Canada, and France offer highly advanced treatments. So, patients used to travel to such destinations when quality care was unavailable in the local environment.

MARKET DRIVERS:

The availability of superior quality healthcare and technological developments propel the growth of the global medical tourism market.

Cost savings associated with medical tourism is majorly propelling the market growth. The costs of surgeries are growing significantly in developed countries such as the United States compared to developing countries such as India. For instance, the cost of knee replacement surgeries in the U.S. is approximately ranging between USD 50,000 to USD 70,000 whereas the same surgery can be done for approximately USD 6,000 in India. According to a study conducted by the Journal of American Medical Association, patients saved approximately 40% of their treatment costs by traveling abroad in the United States. This trend has further accelerated in recent days due to the COVID-19 pandemic in the United States as people who were unable to afford costly treatments in the U.S. have turned towards the medical tourism destinations such as Mexico and Costa Rica, for more affordable care. The treatment costs for dental treatments, cosmetic surgeries, and fertility treatments are significantly cheaper in developing countries such as Mexico, Thailand and India, compared to the costs of developed countries.

Access to specialized treatments in medical tourism destinations is another notable factor boosting the growth rate of the medical tourism market. Some of the medical tourism destinations are offering access to specialized treatments that are unavailable in the home countries of patients. For instance, stem cell therapy for certain conditions such as Parkinson's disease and multiple sclerosis is only available in medical tourism destinations such as Mexico and Thailand. The availability of specialized treatments in medical tourism destinations is providing a way for patients to seek treatment for rare and complicated medical conditions. For instance, proton therapy is available only in certain medical tourism destinations such as the United States, Japan and South Korea that can cure certain cancers.

Medical tourism destinations are offering improved quality healthcare to patients, which is one of the primary reasons behind the growing adoption of medical tourism and contributing to the market’s growth rate. The medical tourism destinations are equipped with world-class healthcare equipment and highly trained healthcare professionals. The governmental and non-governmental organizations of popular medical tourism destinations have invested significant amounts in the development of healthcare infrastructure and technology to offer high-quality healthcare at lower cost and these countries are further providing personalized and specialized care to their patients. These medical tourism destinations are also offering various additional services to the patients accommodation, transportation, and tourism activities to make sure that patients have a comfortable and stress-free experience during their medical trip.

In addition, reduced waiting times in medical tourism destinations are favoring the growth of the medical tourism market. In certain countries, patients will have to wait months or even years to receive the treatment. In such cases, patients are preferring to have medical treatment in medical tourism destinations as these countries can provide quick treatment to the patients. Many medical tourism destinations have also become popular as tourist destinations and provide a way for patients to combine their medical trip as a vacation too and this factor is further accelerating the market’s growth rate. The growing patient population suffering from chronic diseases is boosting the medical tourism market growth.

Furthermore, the availability of advanced medical technologies in medical tourism destinations, favorable exchange rates and affordable travel costs, availability of visa and travel facilitation policies and positive reputation and word-of-mouth referrals are supporting the market’s growth rate. The growing healthcare costs in developed countries, ease of booking medical tourism packages online and increasing trend of medical tourism for dental treatments and procedures are further adding fuel to the growth rate of the market.

MARKET RESTRAINTS:

The rigorous documentation process, visa approval issues, and inadequate insurance coverage are several factors that hinder the growth of the medical tourism market. In addition, conditions that include deep vein thrombosis, tuberculosis, amoebic dysentery, and paratyphoid fever caused by poor postoperative care and insufficient rest are other significant factors limiting the global medical tourism market growth. Furthermore, the extended duration for assisting medical treatment, post-surgery complications incorporated with the restricted chance of follow-up, and high costs to undergo preventive surgery in developed countries further restrict the global medical tourism market growth.

Impact of COVID-19 on the global medical tourism market:

The COVID-19 pandemic has experienced a severe negative impact on the growth of the medical tourism market. To curb the spread of coronavirus, many governments have imposed restrictions such as border closures and travel restrictions. Due to this, the demand for medical tourism services has been hampered significantly and resulted negatively in the market’s growth rate. During the COVID-19 pandemic, many patients have canceled their medical trips due to the fear of contracting with coronavirus. As per the survey conducted by the Medical Tourism Association, 74% of medical tourism providers have experienced a significant decrease in the number of patient inquiries. During the COVID-19 pandemic, many countries have closed their borders. Due to this, many patients were unable to travel to their medical tourism destinations for treatment needs. For instance, Thailand, which is a popular medical tourism destination has experienced a significant decline of 44.1% between 2019 to 2020 and the number decreased from 3.42 million in 2019 to 1.91 million in 2020. However, the medical tourism market is anticipated to recover quickly and register a healthy CAGR in the coming years due to the reduced impact of the COVID-19 pandemic and rising habituation toward new normalization by the patient population.

REPORT COVERAGE:

This research report on the global medical tourism market has been segmented and sub-segmented based on the treatment type and region.

Medical Tourism Market - By Treatment Type:

• Orthopedic Treatment
• Cardiovascular Treatment
• Dental Treatment
• Fertility Treatment
• Cosmetic Treatment
• Neurological Treatment
• Cancer Treatment

Based on treatment type, the cardiovascular and cancer segments occupy most of the market share; in contrast, the fertility treatment segment is expected to show the fastest growth throughout the forecast period. During the forecast period, the segment is projected to record a CAGR of 9.7%. Moreover, fertility treatment is among the most common treatments for which medical tourists choose to fly across international borders.

Due to the increasing prevalence of coronary artery diseases, the cardiovascular surgery segment will see a significant growth of 7.0 percent during the forecast period. The main reasons for high CVD prevalence are lack of physical exercise, adopting a sedentary lifestyle together, and a sub-optimal diet.

Medical Tourism Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Regionally, the North American medical tourism market captured a considerable share of the worldwide market in 2021. Factors such as advanced medical technologies and services are propelling the market. The U.S. medical tourism market led the North American region in 2019 due to the availability of advanced cancer, neurological, and cardio treatments in this country. As a result, the Canadian medical tourism market will grow healthy during the forecast period.

The medical tourism market in Europe is anticipated to have a healthy growth rate in the coming years. Advancements in technology and quality management in the healthcare and medical sectors majorly drive medical tourism in Europe. Germany is predicted to be the fastest-growing region in Europe due to its international quality standards, high-quality service, and medical insurance mobility.

The medical tourism market in APAC is estimated to hold a notable share of the worldwide market during the forecast period. Increasing medical tourism priority for developing countries like Singapore, Thailand, India, and Malaysia is attributed to the availability of advanced medical treatments at substantially lower costs than developed countries. Besides, various government programs to promote medical travel will fuel regional development significantly in the future. The involvement of multi-specialty hospitals that provide advanced technological therapies will play a key role in boosting the growth of the global medical tourism market. India is renowned for advanced cardiac surgery, while Singapore is a popular destination for medical tourism due to its complicated surgery expertise. Thailand is a well-known medical tourism destination, and since 2006, millions of patients have been traveling to Thailand. It is also the world's top source for cosmetic surgery. Due to improved healthcare facilities, China is considered to have a significant market share. Therefore, the appearance of multi-specialty hospitals is influencing the market of medical tourism growth.

The Latin American medical tourism market is predicted to occupy a considerable share of the global market during the forecast period. The growth of this region is due to the different steps taken by the government of the Latin America region countries like Mexico and Colombia, which is required to make betterments in healthcare infrastructure, which outstandingly boost the market growth over the period.

The MEA medical tourism market is estimated to grow at a sluggish CAGR during the forecast period. The growing availability of medical experts is likely to propel the market growth. UAE is expected to have the largest share of the region with an increasing number of cancer patients; increasing capital income is likely to enhance the market. Saudi Arabia is ranked second for having a dominating market share. The market growth owing to the launch of government schemes for assisting the end-users is driving the market growth of the period.

KEY MARKET PARTICIPANTS:

Companies playing a leading role in the worldwide medical tourism market profiled in this report are Min-Sheng General Hospital, Apollo Hospitals Enterprise Limited, Samitivej Sukhumvit, Fortis Healthcare Ltd, Asian Heart Institute, Prince Court Medical Center, Bangkok Hospital Medical Center, KPJ Healthcare Berhad, Raffles Medical Group and Bumrungrad International Hospital.

RECENT MARKET DEVELOPMENTS:

• In February 2018, the Thai government announced prerequisites for granting smart visas for professionals or people in business interested in investing in new companies that will help international medical tourism suppliers expand their business in Thailand with opportunities such as a four-year visa allowance.
• In May 2019, Apollo Hospitals declared in mid-2019 the release of a comprehensive women's and child care unit in Karnataka state with 43 ICU beds and four neonatal ICU beds. The approach would allow the company to extend its products to a broad base of customers.
• In late 2018, the Bone Marrow Transplant (BMT Unit) was established by SRCC Children's Hospital (operating under Narayana Health). This facility allowed Narayana Health to provide Indian and foreign patients with bone marrow transplants, thereby increasing its client base.