Global Medical Tourism Market Research Report Segmented By Treatment Type (Orthopedic Treatment, Cosmetic Treatment, Cardiovascular Treatment, Bariatric Treatment, Ophthalmology Treatment, Dental Treatment, Infertility Treatment, Alternative Medicine, and Others); By Service Provider (Private and Public); and Region Forecast 2024 - 2030.

Market Size and Overview:

The Global Medical Tourism Market was valued at USD 14.58 billion and is projected to reach a market size of USD 56.66 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 21.4%. 

Medical or health tourism stands as a dynamic sector, experiencing continual evolution and emerging as a global phenomenon in the 21st century. The industry's growth has garnered attention from both academic and professional communities. With its continuous expansion, the demand for international healthcare is escalating, presenting a promising landscape for career opportunities in the healthcare and travel sectors over the next decade. As such, leaders must continually cultivate new skill sets and deepen their understanding of macro and micro factors influencing medical tourism, maintaining focus on the broader perspective.

Key Market Insights:

According to a 2021 report from the Medical Tourism Association (MTA), an annual influx of over 14 million individuals seeks medical attention abroad. This surge in international travelers for routine health check-ups and procedural treatments is a driving force behind the global medical tourism market's growth. Some regions offer significantly lower treatment costs.

Singapore attracts nearly 500,000 medical tourists annually, with Indonesia accounting for half of this figure. This trend indicates an imminent substantial increase in the volume of medical tourists.

In Thailand, open heart surgery costs approximately $13,000 compared to $113,000 in the U.S. Meanwhile, a hip replacement procedure in Thailand is priced at about $7,800, in stark contrast to $50,000 in the U.S., according to Apollo Hospitals' records.

Cosmetic surgery treatments in the U.S. average between $4,500 and $12,500. Consequently, a substantial number of individuals seeking cosmetic surgery opt to travel abroad, where they can receive comparable care at a 50% lower cost. These factors collectively contribute to the global expansion of the medical tourism market.

Nevertheless, within destination countries, there is a potential internal migration of trained medical professionals from rural to urban areas and from the public to the private sector, seeking enhanced opportunities.

Medical Tourism Market Drivers:

The global medical tourism industry is propelled by the provision of high-quality treatment at affordable and comparatively low costs.

Developing nations like Malaysia and Thailand offer high-quality treatment facilities at lower costs compared to developed countries. Despite the minimal cost of procedures in developing countries, the quality of treatment is not compromised due to the abundance and affordability of resources. This attracts individuals seeking health services, with Malaysia offering medical treatments at 30% to 40% lower costs than developed countries such as the U.S., UK, and other European economies. The improvement of healthcare infrastructure and accessibility to high-quality healthcare services at affordable prices are expected to fuel further market growth.

Long waiting times in developed countries are a significant concern, driving medical tourism.

Several developed nations, including the UK and Canada, experience prolonged waiting periods between appointments and subsequent procedures. These delays may exacerbate conditions for patients, leading to complications. For instance, delaying hip replacement surgery can result in hip joint weakening, mobility limitations, and increased pain, rendering hip resurfacing no longer viable. This issue contributes to the growth of medical tourism in the sector.

The increasing prevalence of diseases globally is a catalyst for the medical tourism market.

The rising burden of diseases, especially among the geriatric population, coupled with advanced medical technologies for treating chronic health disorders, is fostering global demand for medical tourism. Support from governments and tourism departments in both source and host destinations is predicted to significantly boost market growth. People seek medical tourism due to expensive treatments, long waiting times, or the unavailability of specific treatments in their home countries. The escalating awareness of medical tourism and increased affordability of advanced medical treatments are key factors driving the growing demand for medical tourism.

Governmental investments in medical infrastructure and maintenance are propelling the global medical tourism market.

Increased government investments in building robust, advanced healthcare facilities are driving the medical tourism market. Favorable government policies, growing investments in air connectivity and other transport modes, and initiatives promoting medical tourism contribute significantly to global market development. Accessible information regarding facilities, treatment costs, and optimal destinations for treatment plays a crucial role in raising awareness about medical tourism. Additionally, the shortage of specialized health professionals prompts increased medical tourism, as these professionals engage in tourism activities to perform specialized surgeries requiring their expertise.

Medical Tourism Market Restraints and Challenges:

Major impediments to the medical tourism market include the protracted and intricate insurance reimbursement process, along with challenges related to language barriers and visa complications.

Numerous private healthcare facilities impose exorbitant fees for medical treatments and surgeries, causing predicaments for patients lacking health insurance coverage. Those individuals who are covered by health plans encounter issues pertaining to insurance coverage policies and the reimbursement process. The complexity of structures within insurance companies often results in the refusal to cover the complete insurance amount for foreign treatments. Some insurance providers only cover treatment expenses if they are more economical in other countries, excluding airfare and miscellaneous costs. Consequently, individuals tend to opt for treatment within their home countries, adversely impacting the medical tourism industry. Furthermore, difficulties related to language, documentation, and visa approval processes pose additional obstacles to market growth. Another noteworthy challenge hampering market expansion is the absence of adequate follow-up care for patients.

Medical Tourism Market Opportunities:

Specialized treatments for conditions such as cancer, cardiovascular diseases, orthopedic issues, and dental problems drive people to seek medical care in different locations. The global medical tourism industry is on the rise due to the convenient access to financial resources and assets.

Individuals benefit from various health and medical insurance options offered by diverse financial and insurance companies, where medical travel is either fully or partially covered by several insurance policies.

Medical Tourism Market Segmentation: By Treatment Type

1. Orthopedic Treatment
2. Cosmetic Treatment
3. Cardiovascular Treatment
4. Bariatric Treatment
5. Ophthalmology Treatment
6. Dental Treatment
7. Infertility Treatment
8. Alternative Medicine
9. Others

In 2022, the cosmetic treatment segment emerged as the market leader, constituting the largest revenue share at approximately 24.1%. This dominance is attributed to factors such as heightened patient awareness, increasing demand for various anti-aging treatments, and the escalating costs of cosmetic procedures and implants in developed nations, all of which are contributing to the overall market growth.

Asia-Pacific, particularly Thailand, has established itself as a focal point for cosmetic procedures, particularly in the realms of bariatric and cosmetic surgeries. Common procedures in Thailand include laser tattoo removal, breast augmentation, hair transplantation, botox, and liposuction. Alternatively, medical procedures like gastric bypass, knee replacement, and hip replacement are more economically viable in India.

The cardiovascular treatment segment, accounting for approximately 4.27% of the global market share in 2022, is forecasted to be the most opportunistic segment during the outlook period. The growth of this segment is propelled by the alarming increase in cardiovascular cases and associated deaths. Sedentary lifestyles, unhealthy dietary choices, and the rising prevalence of tobacco use contribute significantly to cardiovascular diseases.

Medical Tourism Market Segmentation: By Service Provider

1. Public
2. Private

In 2022, the private segment asserted its dominance in the global market, capturing the highest market share of around 53.2%. It is anticipated to be the fastest-growing segment with a projected CAGR of 26% from 2023 to 2030. The growth is attributed to factors such as the adoption of advanced healthcare technologies and the appeal of internationally accredited private care hospitals. Additionally, the private sector's ability to provide faster services and enhanced privacy contributes to its high growth rate compared to the government sector.

Medical Tourism Market Segmentation: Regional Analysis

1. North America
2. Asia-Pacific
3. Europe
4. South America
5. Middle East and Africa

In 2022, North America emerged as the dominant region in the global medical tourism market, generating a revenue share of 21.4%. The growth is fueled by the increasing number of tourists in the U.S. seeking treatment for cardiological and orthopedic disorders. The substantial expenditure of $3,930 million on incoming medical tourism in the U.S. in 2019, as reported by the World Travel and Tourism Council, significantly contributes to the region's medical tourism market development.

Europe is a significant market player with a substantial market share, driven by the ongoing development of medical facilities in countries like France, the U.K., and Spain, coupled with the growing trend of medical tourism.

However, the Asia-Pacific region is poised to exhibit the fastest CAGR of approximately 15.87% during the forecast period. Asian countries, renowned for their cost-effective treatments, are preferred destinations for medical tourism. India, ranked as the world's tenth most popular tourist destination for medical tourism according to the Medical Tourism Index, is a key contributor to the region's market growth. Thailand, hosting nearly 400 private hospitals, continues to experience growing popularity, positioning itself as a leading destination for medical tourism.

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

The advent of the COVID-19 outbreak in 2019 led to stringent restrictions across various sectors to curb the virus's spread. The closure of travel and national borders resulted in a substantial 84% reduction in tourism in the Asia-Pacific region in 2020. However, a return to pre-pandemic levels is anticipated by 2024, driven by the reopening of economies and an upswing in patient visits.

Latest Trends/ Developments:

The global medical tourism market exhibits a reasonable split and fragmentation, characterized by the presence of numerous global companies. These entities strive for increased market share through diverse strategies, including acquisitions, partnerships, and investments. Considerable investments in the development of enhanced products and infrastructure, coupled with competitive pricing, have fostered greater government engagement and the advancement of health tourism.

Recently, the travel industry has made notable strides alongside health tourism, with various tour and travel agencies organizing trips, accommodations, and holidays for patients during and after their treatment plans. These agencies collaborate closely with patients, considering their medical conditions, as well as social and religious beliefs when arranging these trips, significantly supporting the medical tourism sector. Health tourism specialists and travel agencies assist in coordinating essential travel and stay arrangements, working in tandem with healthcare providers to plan details such as visas, flights, lodging, insurance, currency exchange, etc. Notably, in 2020, OYO introduced a comprehensive travel assistance program in collaboration with SRL Diagnostics, Indus Health Plus, and 1Mg, facilitating 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 introduce a Travel Medicine Pass for travelers between Singapore and South Korea.

In October 2021, BC Platform, a global leader in data science solutions, extended its partnership with Bumrungrad Hospital, Thailand, to expedite the medicine adoption process in the Southeast region.