Medical tourism refers to traveling abroad to obtain medical treatment or undergo medical surgeries. Over the years, medical tourism industry has grown substantially owing to rising healthcare costs in developed countries and long waiting times for treatments. There has been an increase in availability of low-cost quality treatment options offered by various emerging destinations. Countries such as India, Thailand, and Mexico have made significant investments in healthcare infrastructure and attracted large number of medical tourists.
The global medical tourism market is estimated to be valued at US$ 32,733.7 Mn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.
Key Takeaways
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 investing in enhancing their service offerings and building strategic partnerships with international insurers to boost medical tourism. There has been rising demand for cost-effective treatments in various therapeutic areas such as oncology, cardiology, orthopedics and fertility treatments. Various countries are promoting medical value travel with initiatives focusing on easing medical visa requirements, lowering costs and improving quality of healthcare services. Technological advancements such as use of robot-assisted surgeries and minimally invasive procedures are fueling the growth of medical tourism industry.
Market Trends
One of the key trends in the medical tourism market is the growing popularity of wellness tourism. Many tourists are incorporating wellness programs focusing on spa, yoga and alternative treatments along with medical treatments. This is expected to benefit destinations offering integrated wellness and medical packages. Another major trend is the rising popularity of dental and cosmetic surgeries among medical tourists. The availability of latest technologies, skilled dentists and plastic surgeons at affordable costs is attracting large number of patients travelling abroad for dental treatments and cosmetic procedures.
Market Opportunities
The untapped regions in Middle East and Africa hold significant growth opportunities for players in the medical tourism market. Countries such as Turkey and UAE are emerging as leading centers for medical travelers from Africa. There is potential to promote treatments in underserved therapeutic areas such as neurological disorders, rare diseases and regenerative medicines. Offering virtual and augmented reality integrated medical tourism experiences can help boost patient engagement and growth of the industry.
Impact Of COVID-19 On Medical Tourism Market
The COVID-19 pandemic has significantly impacted the medical tourism industry across the globe. International travel restrictions and lockdowns imposed by various countries led to a steep decline in cross-border patient travel during the peak of the pandemic in 2020 and 2021. The cancellations of scheduled surgeries and non-essential procedures also reduced the inflow of medical tourists. Many destination countries witnessed over 60-70% drop in the number of foreign patients during this period.
However, with the relaxation of travel norms and advancements in treatment protocols, the medical tourism sector has started recovering gradually post-COVID. Several destinations in Asia, Latin America, and Eastern Europe have now eased visa and quarantine rules for medical travelers. Many healthcare providers are also offering vaccination packages and COVID insurance to boost patient confidence. Telehealth and digital healthcare solutions played a crucial role in maintaining links between overseas clients and local medical teams. The implementation of stringent safety protocols across clinics and hospitals helped revive patient trust. While it may take some more time, the sector is expected to regain pre-pandemic numbers by 2024-25 with continuous support from governments and allied industries.
Geographical Concentration Of Medical Tourism Market
In terms of value, the medical tourism market is highly concentrated in Asia, with countries like India, Thailand, Singapore, and South Korea attracting a major share of foreign patients before the pandemic. Advanced infrastructure, affordable costs, and Joint Commission International accredited facilities have established Asia as the leading medical tourism hub globally. India in particular has emerged as one of the top destinations, with over 500 hospitals accredited by various international bodies and a favorable regulatory environment. Mexican and Turkish markets are also growing rapidly due to lower prices compared to the US and Europe. Significant investments are being made to boost branding, connectivities, and service quality to grab a bigger pie of the lucrative medical travel segment.
Fastest Growing Region For Medical Tourism Market
Latin America is expected to witness the fastest growth in the medical tourism industry over the coming decade. Countries like Mexico, Brazil, Colombia, and Costa Rica are gaining prominence owing to factors such as cultural proximity to the US, skillful doctors trained abroad, positive medical regulation, and competitive pricing. Mexico currently attracts the second highest number of international patients after India and is expanding its network of JCI-certified facilities and wellness resorts. The emergence of regional hubs, strong infrastructure development, and government initiatives to promote medical services will help Latin American nations leverage their cost advantages and meet rising demand from developed source markets like the US, Europe, and Canada. This makes Latin America one of the most attractive investment zones for medical travel in the post-COVID period.
