Medical Tourism Market Overview
Global medical tourism market is expected to garner $143.8 billion by 2022, registering a CAGR of 15.7% during the forecast period 2015 - 2022. Medical tourism can be broadly defined as travel across international borders with the purpose of availing medical treatment of some form, which may or may not be available in the travelers’ home country. This treatment may include a wide array of medical services; however, the most frequently availed services include dental care, cosmetic surgery, elective surgery, and fertility treatment. The motives for making the travel could be one or more among the following major factors:
- High cost or affordability of medical services including the one the customer needs to avail.
- Non-availability or low quality of the necessary treatment due to lack of healthcare infrastructure or skilled service providers.
- Less waiting time for the available treatment such as organ transplant.
Medical tourism includes people who travel to a different place to receive treatment for a disease, an ailment, a condition, or to undergo a cosmetic procedure, and who are seeking lower cost, higher quality, different or better access to care than what they could receive at home.
The medical tourism market encompasses a large and broad number of categories of travelers. However, for the purpose of this study, we have limited the scope to patients travelling across international borders to avail critical or less critical but necessary treatment. We have excluded out-patient single day procedures, aesthetic, cosmetic and dental treatment medical tourism within international borders.
The report highlights the global medical tourism market in accordance with the treatment type and geography. Based on treatment type, the market is categorized into cosmetic, dental, cardiovascular, orthopedic, neurological, cancer, fertility, and other general treatments.
The report also provides the revenue generated from medical tourism segmented by geography and the key countries that attract patients to travel to the destinations in order to avail medical services.
To provide a detailed market assessment, this study also considers the government regulations, reimbursement scenario in developed as well as developing regions and the potential impact of medical tourism on the healthcare system.
Major destinations for medical tourism include Thailand, India, South Korea, Barbados, Mexico, Brazil, Japan, Malaysia, Costa Rica, Singapore, Hong Kong, Israel, Iran, South Africa, France, Germany, Turkey, and the UK among others. Most of these destinations offer specialized treatment for specific medical conditions. For instance, Barbados is known for fertility treatment services while Singapore is famous for stem cell treatment and cancer treatment.
Medical tourism is among the major revenue generators for developing nations such as India, South Africa, Thailand, and Mexico. These destinations offer a variety of good quality medical services at a relatively low price when compared to developed nations. Medical tourism is being supported by the respective governments of popular medical tourism destinations, such as India, Thailand, Malaysia, and South Korea, through subsidies on infrastructure development, relaxed visa regulations for patients & their travel partners, and supportive legal issues resolution. For instance, in a bid to promote medical tourism in the country, Thailand’s Ministry of Interior decided to allow an extended stay of 90 days, without visa, to the medical tourists from the six GCC countries in 2011.
Per Capita Healthcare Expenditure, by Geography, 2012-2013 (US$)
Developed nations such as the U.S., Japan, UK, Germany, and France offer highly advanced specialty treatments. Patients travel to such destinations when good quality care is not available in the local environment; however, cost of services is usually high in such destinations. Therefore, patients opt to visit developed nations only when the necessary treatment is not available in their locality or developing nations.
Currently, a major flow of patients is towards Asia, especially Thailand, South Korea, India, and Malaysia. Most patients are from the U.S. and Europe who are looking for good quality services at affordable prices.
In the recent years, advertising and enhanced penetration of internet to the remote places has helped patients identify travel destinations that suit their need and budget for a particular medical service. Agencies, brokers, and international accreditation associations such as Joint Commission International (JCI) have helped medical service seekers to gain the necessary information and have provided a platform for medical service providers to convey their value offerings to the wide customer base, now from across the globe.
North America Cardiovascular Treatment medical tourism market revenue, 2014-2022 ($billion)
Medical tourism has had a tremendous impact on the healthcare system. It has allowed for development of expertise in specialty treatments at various destinations across the world. Medical tourism has helped fund research & development activities in the healthcare industry. It has also attracted further investments for development of infrastructure and service capabilities of popular service providers. Globalization, communication revolution, and better logistic connectivity has allowed for patients to reach remote pockets of the world that offer necessary specialty services with excellence.
Medical tourism attracts potential customers of service providers in one destination to another. This results in a considerable loss in customer base and eventually revenue streams. Owing to this loss of profitability, institutions are unable to invest in research and development and improve or grow their capabilities. Furthermore, owing to a lack of profitability, it becomes difficult for such institutions to attract investments for developing their capabilities and expertise.
Top Five Medical Tourism Destinations for Outbound Patients from China and Indonesia (2013)
This may cause a halt in technological advancements in healthcare in such locations. Although this curve of occurrence is based on a long term, it is a credible threat. Moreover, excess influx of medical tourists may put pressure on limited healthcare capacities of the destination, especially for highly populated countries such as India, Thailand, Mexico and Malaysia.
Rise in medical tourism has also added to rich exchanges of cultures and traditions between the visiting and the local populations. It helps spread a positive word and raises awareness amongst people across borders. This in turn increases the flow of medical tourists across borders and initiates an exchange of healthcare techniques as well. The healthy exchange of information and practices helps improve the services further and creates a sustainable growth pattern.
MEDICAL TOURISM MARKET KEY BENEFITS:
- This report provides an extensive analysis of the current and emerging trends and dynamics in the global medical tourism market.
- The medical tourism market scenario is comprehensively analyzed in accordance to the key regions.
- The market estimations are based on high-end analysis of the key market segments from 2014 to 2022.
- Extensive research is done for the market by treatment type, which provides a clear understanding about the current trends and flow of medical tourists.
- A detailed SWOT analysis enables to study the internal environment of the leading service providers for strategy formulation.
MEDICAL TOURISM MARKET KEY SEGMENTS:
The global medical tourism market segmentation is illustrated below:
By Treatment Type
- Cardiovascular Treatment
- Orthopedic Treatment
- Neurological Treatment
- Cancer Treatment
- Fertility Treatment
- Other General Treatment
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Costa Rica