Medical Tourism Market

Market Overview

The global medical tourism market size was valued at USD 5.85 billion in 2022. It is projected to reach USD 62.03 billion by 2031, growing with a CAGR of 30% during the forecast period (2023–2031).

Medical tourism is the practice of traveling outside the country of residence to seek medical attention. Medical tourists cross international borders for the purpose of maintaining or restoring their health by utilizing the relatively inexpensive healthcare facilities and treatments offered in other nations. Medical tourists travel to receive treatments, including dental care, neurological care, and cardiovascular care. Emerging countries are a hotspot for medical tourism as they offer high-quality services at lower costs. It is anticipated that the market will advance at a rapid rate in the coming years. The high cost of healthcare in home countries is the key element driving market expansion. In addition, the sector is pushed by the increasing demand for procedures not covered by insurance, such as gender reassignment surgery, reproductive therapy, dental reconstruction, and cosmetic surgery.

Market Dynamics

What are the factors driving the market growth?

Availability of Low-Cost Medical Treatment in Developing Countries

In developing nations such as Thailand and Malaysia, high-quality medical care is more affordable than in developed nations. Even though treatment expenses in emerging countries are minimal, the quality of the operation is not impaired due to the availability of relatively inexpensive resources. This issue contributes to the influx of individuals seeking health services in these nations. India's cardiovascular surgery success rate is about 98%, which is among the highest achievable success rate in any developing country. The ease and affordability of foreign travel and the availability of advanced and efficient quality medical services in developing countries at low costs provide an impetus to market growth.

Government Initiatives 

The Global Healthcare Accreditation (GHA) and the Joint Commission International (JCI) have imposed stringent rules on hospitals and medical centers to ensure effective services for overseas patients. Governments across the globe are offering several incentives to increase medical tourism in their respective countries, further driving the market growth. Local and multinational organizations are actively working to introduce high-quality medical services, thereby accelerating market growth. The market's primary driver is the availability of quality medical services. Currently, the U.S. has approved over 600 emergency units and clinics across the globe, and the number is projected to grow by 20% annually.

Segmental Analysis

The global medical tourism market is segmented by treatment.

Based on treatment, the market is segmented into cosmetic treatment, dental treatment, cardiovascular treatment, orthopedic treatment, bariatric surgery, fertility treatment, and ophthalmic treatment.

The cardiovascular treatment segment leads to the medical tourism market. The increasing prevalence of coronary heart disease is surging the number of cardiovascular surgeries across the globe. As per the American Heart Association (AHA), in 2017, around 90 million people suffered from cardiovascular disease (CVD) in the U.S. CVD is one of the leading causes of death across the globe, accounting for about 24% of global deaths. The high-cost treatment has compelled patients to seek treatment abroad, spurring the global demand for modern cardiovascular medical techniques. The prevalence of CVD can be attributed to the lack of physical activity and a sedentary lifestyle.  

The bariatric surgery segment is projected to grow at a significant rate. As per the World Health Organization (WHO), globally, around 650 million people suffered from obesity in 2016. Thus, the increasing prevalence of obesity around the globe is subsequently increasing medical tourism for affordable bariatric surgeries. In developing countries, the cost of bariatric surgery is 50% lower compared to developed countries. In India, around 15,000–18,000 bariatric surgeries are performed annually, and the number is expected to double in the coming years. In the U.S., bariatric surgery costs nearly USD 50,000, whereas, in India, the surgery costs nearly USD 5,000–10,000.

Regional Analysis

Asia-Pacific leads the medical tourism market and will continue the same during the forecast period. Thailand became the most popular medical tourism destination in 2019. An increasing number of private clinics, robust healthcare sectors, and lower healthcare costs drive the medical tourism market in Thailand. The country has over 450 private hospitals and about 53 Thai hospitals have received JCI accreditation. The country is known for its low-cost, high-quality cosmetic and bariatric surgery. The country offers many specific treatments, such as breast augmentation, removal of laser tattoos, liposuction, and botox, among others. The government of Thailand is offering smart visas to practitioners and companies to accelerate medical tourism in the country. In Bangkok, the Bumrungrad International Hospital, the Samitivej Hospital, and the Bangkok Hospital Company account for about 50% of the medical tourism of the country. In India, Apollo Hospitals Enterprise Ltd. and Fortis Hospitals contribute to the country’s market growth. The increasing prevalence of lifestyle disorders, growing demand for affordable healthcare delivery systems, technological advancements, the advent of telemedicine, and government initiatives drive market growth in India. As per the Ministry of Tourism, about 200,000 patients travel to India for medical tourism annually. Additionally, the market players are channelizing efforts to gain a competitive edge and expand their customer base. 

The market for medical tourism is expanding significantly in North America. The widespread availability of high-quality healthcare facilities in the United States and Canada fuels the regional market's expansion. In addition, the increasing awareness and affordability of medical services in Mexico would favorably influence the growth of the North American medical tourism market over the projection period. According to a survey by the United States International Trade Commission, about 100,000 to 200,000 individuals go to the United States annually for medical treatment. Canada scored first on the Medical Tourism Index for 2020, attracting nearly 14 million Americans annually. Chronic diseases are increasing at an alarming rate across the globe due to several variables, including bad food habits, radical lifestyle changes, and physical inactivity. Consequently, North American countries have introduced programs to make the region a global leader in healthcare. The younger generation has an increasing desire to look more youthful and to enhance their face or bodily traits. This has increased the demand for cosmetic surgery, with many individuals traveling to North America.

Europe is anticipated to witness significant growth over the forecast period. Germany, Austria, Switzerland, France, and Belgium, among others, are the leading European countries, giving relatively affordable access to high-quality medical care. In Eastern Europe, conventional surgical, medical, and dental procedures are less expensive. These nations have well-equipped medical facilities and abundant natural resources that have a good effect on the healing of patients. In the region, medical care is available for 40% to 80% less than in the United States. Health tourism currently accounts for approximately 5 percent of the tourism business in the EU28 and provides approximately 0.3 percent to the EU economy. Turkey has become a top and well-liked destination for medical tourists seeking less complicated treatments. The government provides discounts for patients flying with Turkish Airlines. In addition, the government intends to establish tax-free healthcare zones for overseas patients. To further fuel this section of the tourism industry, more and more governments and businesses are offering low-cost flights, open borders, and all-inclusive packages.

In Latin America, destinations like Mexico, Cuba, and the Dominican Republic attract millions of tourists annually. Over the past decade, medical treatment has become one of the primary reasons for traveling to Latin America, primarily due to the low cost of health procedures in comparison to other regions but also due to the high quality of health services provided by hospitals and clinics in many Latin American countries. The UAE is actively working to develop healthcare infrastructure and emerge as one of the hotspots for medical tourism. In April 2016, Dubai unveiled the world's first interactive online medical tourism app, Dubai Health Experience, providing access to a wide range of health and related facilities such as beauty, cosmetics, and dental care packages. The UAE is also engaging in prominent collaborations to provide innovative healthcare technology, procedures, and norms from the West. RAK Hospital, an 80-bed facility in Ras Al Khaimah, is among the most sought-after hospitals for travelers coming into the UAE for surgical procedures. The hospital is licensed by Joint Commission International and Swiss Leading Hospitals and is operated by the Swiss-based healthcare group. The hospital specializes in respiratory medicine, anaesthesiology, intensive care unit, cardiac surgery, internal medicine, podiatry, spinal and orthopedic surgery, and the clinic for pain control, endocrinology, pediatrics, neonatology, urology, and nursing, among others.

Recent Developments

• November 2021- The General Authority for Health Care signed a cooperation pact with a medical tourism company to promote the treatment of overseas patients in Egypt. As part of the authority's new campaign titled "We take care of you in Egypt," the agreement will deploy the most advanced medical tourism programs following international standards and artificial intelligence technologies.
• July 2022- The Union health ministry of India is preparing to launch the new project 'heal in India and heal by India,' a portal designed to promote medical tourism. Developed as part of the Ayushman Bharat Digital Mission, the portal will have a database of healthcare professionals and hospital services to assist international patients seeking medical assistance in India.

Medical Tourism Market Segmentation

By Treatment

• Cosmetic treatment
• Dental treatment
• Cardiovascular treatment
• Orthopaedic treatment
• Bariatric surgery
• Fertility treatment
• Ophthalmic treatment

By Region

• North America
• Europe
• Asia-Pacific
• Central and South America and the Caribbean
• The Middle-East and Africa