Medical tourism refers to traveling across international borders with the intention of receiving medical treatment. Medical treatments primarily include elective procedures such as cosmetic surgeries, dental treatment and others. These procedures provide advantages such as low cost, advanced medical technology and availability of medical specialists. The rising healthcare costs in developed nations alongside long waiting times for elective procedures have increased the demand for medical tourism globally.
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.
Market Opportunity:
Cost Savings
The key opportunity driving the growth of the medical tourism market is the significant cost savings associated with medical treatments in destinations countries. Medical procedures in countries like Thailand, India and Mexico cost approximately 60-90% lower than the costs in developed nations like the US and countries in Western Europe. For example, the average cost of a hip replacement surgery in the US is around $40,000 whereas the same procedure can be availed at an average cost of $12,000 in India. The substantial difference in costs makes medical tourism an attractive option, especially for elective procedures which are typically not covered by insurance. This cost differential is expected to continue propelling the demand for medical tourism over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants is relatively low as the medical tourism market requires large capital investments for building state-of-the-art facilities and acquiring latest medical technologies and equipment. The market also requires strong brand image and an experienced professional workforce which makes entry difficult.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. Buyers have a variety of choices when it comes to selecting countries and healthcare providers for medical treatment. They can choose providers based on cost, quality of care, and convenience.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. The suppliers of critical medical devices, pharmaceuticals, and other healthcare products have some influence. However, the presence of many supplier options provides alternatives to buyers.
Threat of new substitutes: The threat of new substitutes is low as there are limited alternatives to medical tourism for obtaining affordable specialized treatment abroad.
Competitive rivalry: The competitive rivalry is intense as various nations and hospitals compete to attract medical travelers through investment in advanced infrastructure and quality services.
SWOT Analysis
Strengths: Choice of high-quality healthcare at relatively low costs, wide range of affordable treatment options.
Weaknesses: Concerns regarding regulatory frameworks, possibility of medical error or complications abroad.
Opportunities: Growth in medical tourism from emerging countries, new collaborations between healthcare providers globally.
Threats: Economic and political instability in tourist destinations, disruption due to health crises like COVID-19 pandemic.
Key Takeaways
The global medical tourism market is expected to witness high growth. The market size for 2024 is forecast to reach US$ 32,733.7 million, growing at a CAGR of 12% during 2023-2030 forecast period. The main growth drivers are rising medical costs in developed countries and availability of affordable specialized treatment options in developing nations.
Regional analysis: Asia Pacific dominates the global medical tourism market, with countries like India, Thailand, Singapore, and Malaysia being the top destinations. India accounts for over 27% market share, supported by factors like accredited hospitals, English speaking professionals, and lower costs as compared to the US or Europe. Southeast Asia is emerging as another fast growing regional market.
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. They are focusing on strategic collaborations to enhance their service offerings and attract more medical travelers.