Market Overview:
The medical tourism market involves traveling abroad to obtain medical treatment. Common treatments received by medical tourists include cardiovascular surgery, orthopedic surgery, dental surgery, cosmetic surgery, and fertility treatments. Medical tourism offers several advantages such as reduced treatment costs, availability of procedures not permitted domestically, and shorter waiting times for treatments. This has made medical tourism an attractive option for people seeking affordable healthcare across the world.
The global Medical Tourism Market is estimated to be valued at US$ 32,733.7 Mn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
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Market key trends:
One of the major trends in the medical tourism market is increasing affordability of treatments. Medical costs for various treatments are generally lower in many countries compared to developed nations such as the U.S. and Canada. Countries such as India, Thailand, and Mexico have emerged as popular destinations for medical tourism due to significantly lower costs of treatment, especially for elective surgeries. For example, the cost of a hip replacement in the U.S. can be 5-10 times higher compared to the cost in these countries. This is a key factor driving more people to seek treatment options in other countries.
Porter’s Analysis
Threat of new entrants: The medical tourism market requires high initial investments to set up advanced medical facilities and infrastructure which makes the entry difficult for new players.
Bargaining power of buyers: Patients have high bargaining power due to the availability of various medical tourism destinations offering treatments at competitive prices with similar quality of services.
Bargaining power of suppliers: Providers like doctors and medical staff have moderate bargaining power due to shortage of skilled staff in the industry. However, suppliers cannot charge high prices due to competitive market.
Threat of new substitutes: threat from new substitutes is low as there are limited medical tourism alternatives that provide complete treatment packages at affordable costs along with tourism benefits.
Competitive rivalry: The medical tourism industry experiences high competitive rivalry due to presence of large number of regional and international medical tourism centers offering personalized services to patients.
Key Takeaways
The global medical tourism market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing medical costs in developed nations. Countries like US and UK have highest medical inflation which is driving patients to opt for medical tourism.
Regional analysis: Asia Pacific dominates the global medical tourism market and is expected to continue its dominance during the forecast period. Countries like India, Thailand, Singapore and South Korea are the preferred medical tourism destinations in Asia due to availability of similar treatment quality at lower costs when compared to developed countries. Additionally, these countries promote medical value travel to bolster their healthcare industries.
Key players operating in the medical tourism market are Asian Heart Association, Apollo Hospitals Enterprise Ltd., Prince Court Medical Centre, Gleneagles Hospitals, Min-Sheng General Hospital, Raffles Medical Group, Bangkok Hospital, Fortis Healthcare Ltd., Anadolu Medical Centre and Wooridul Spine Hospital. These players are focusing on expanding their global reach and enhancing their medical infrastructure and service quality to attract more medical tourists.
