Medical Tourism Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Medical Tourism Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global medical tourism market was valued at USD 31,532.43 million in 2021, and it is expected to reach USD 54,201.88 million by 2027, with a CAGR of 11.23% during the forecast period (2022-2027).

COVID-19 had an unprecedented impact on the market due to lockdowns all over the globe coupled with the disruption of the supply chain, manufacturing, and others. The medical tourism industry has been hit hard by the COVID-19 pandemic that has swept the globe. The COVID-19 pandemic has had a major impact on major medical tourism markets, including popular medical tourism destinations such as India, China, and other emerging countries. For instance, the article titled "Impact of COVID-19 outbreak over Medical Tourism" published in May 2020 reported that the effect of a pandemic on the medical tourism industry was multidimensional in the form of a health care crisis, a falling economy, and a cessation of international travel followed by restricted international travel with due risk of infection. Thus, COVID-19 had a pronounced impact on the growth of the market. However, with the upliftment of restrictions, the market is expected to grow at a rapid pace.

The factors associated with the growth of the market include higher treatment costs in developed countries; availability of the latest medical technologies; growing compliance with international quality standards; the high quality of service; health insurance portability; and advertising and marketing of medical tourism.

Mexico has long attracted dental and cosmetic surgery patients from the United States. For instance, according to the article titled "Americans are driving to Mexico for dental treatment," published in June 2020, the dental facilities in Mexico were among the first in the world to reopen their doors and welcome patients. Additionally, the article quoted that Dental Departures, a global dental online travel agency, had reported four consecutive weeks of increased appointment bookings and a 60% increase in traffic in 2020. Additionally, according to the Dubai Health Authority Report on Health Tourism released in May 2022, Dubai received 630,000 international health tourists in 2021, and the spending of international patients reached nearly AED 730 million in the past year despite the global COVID-19 pandemic. It also reported that 38% of health tourists were from Asian countries, 24% were from Europe, and 22% were from Arab and GCC nations. Such increasing medical tourism is driving the growth of the market.

In addition, the initiatives taken by the governments of different countries are also expected to drive the growth of the market. For instance, in July 2021, the Ministry of Tourism, India established the "National Medical and Wellness Tourism Board" to promote medical and wellness tourism in India. Furthermore, the strategic initiatives taken by the market players are also expected to contribute to the growth of the market. For instance, in March 2021, Athina Global Health, in partnership with Liberty International Tourism Group, launched its global medical value travel service. Such initiatives are expected to boost the growth of the market.

Thus, owing to the abovementioned factors, the market is expected to project lucrative growth over the forecast period. However, issues with patient follow-up and post-procedure complications, and medical record transfer issues may impede the growth of the market.

Key Market TrendsFertility Treatments Segment Expected to Have Healthy Growth Rate Over the Forecast Period

The fertility treatments segment of the medical tourism market is believed to show significant growth over the forecast period. Factors such as the growing burden of infertility around the world and the availability of affordable treatments in emerging economies nations are expected to drive the growth of the market segment.

According to the article titled "In vitro Fertilization" updated in May 2022 in NCBI, globally 10–12% of couples have difficulty conceiving, and this number is expected to gradually increase in the coming years. Also, the same article quoted that infertility affects approximately 1 in 8 couples in the United States. Thus, infertility-related problems among couples have stimulated the demand for fertility treatments worldwide.

Additionally, emerging economy countries have shown an increase in the number of tourists for medical treatment. For instance, according to reports from Nova IVF Fertility 2020, about 49% of international patients came from other parts of Asia, and 25% came from the African continent for fertility treatment in 2020. According to the same source, the number of African patients coming to India for infertility treatment increased by 46%, and the number of international patients coming to India for infertility treatment increased by 8% in 2020.

Furthermore, according to the Dubai Health Authority Report on Health Tourism released in May 2022, Dubai has also witnessed health tourism for gynecological diseases and treatment, and the top three regions in the field of gynecology were Asia (57%), Europe (15%), and the Arab and GCC region. Such reports demonstrating the increasing number of tourists for fertility and other gynecological treatments are expected to propel the growth of the market segment.

Hence, owing to the abovementioned factors, the fertility segment is estimated to witness significant growth over the forecast period.

Asia-Pacific Currently Dominates the Market and Expected to Same Over the Forecast Period.

The Asia-Pacific region currently dominates the medical tourism market and is expected to continue its stronghold for a few more years. This region is expected to increase its market share in the future, owing to the preference for medical tourism across the developing countries of this region, initiatives taken by the government, and the high cost of medical treatment in developed countries.

Healthcare in India is significantly less expensive than in Western and Middle Eastern countries. According to the Indian Medical Tourism Association 2020, in the Medical Tourism Index 2020–21, India is ranked 10th out of 46 countries worldwide. The same source also reported that most of the medical tourists to India are from Afghanistan, Pakistan, Oman, Bangladesh, Maldives, Nigeria, Kenya, and Iraq. Such statistics demonstrate the stronghold of the Asia-Pacific countries in medical tourism around the world.

Additionally, the initiatives taken by the governments of Asia-Pacific countries are also expected to propel the growth of the market in the region. For instance, in April 2022, the government of India planned to launch a special category of Ayush visa for tourists who want to visit India for medical treatment or tourism. This initiative is a part of the government’s "Heal In India" campaign to promote medical tourism in India. Additionally, in February 2022, Japan expanded its health tourism offerings by including "wellness" facilities to attract tourists. The wellness offerings include spas, yoga and meditation classes, and fitness programs. Such initiatives undertaken by the government are expected to boost the growth of the market over the forecast period.

Thus, owing to the abovementioned factors, the market is expected to witness healthy growth in the Asia-Pacific region over the forecast period.

Competitive Landscape

The global medical tourism market is moderately competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and quality service provision, mid-size to smaller companies are increasing their market presence by introducing new products at lower prices. Companies like Healthbase, Apollo Hospitals, KPJ Healthcare, and Klinikum Medical Link hold a significant market share in the medical tourism market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.