The global surrogacy market size was valued at USD 175.79 million in 2022. It is projected to reach USD 303.35 million by 2031, growing at a CAGR of 6.25% during the forecast period (2023-2031).
Surrogacy is a form of assisted reproduction in which the intended parents collaborate with a surrogate who carries the embryo to term. Surrogacy utilizes both conventional and gestational-assisted reproductive technologies. Traditional technology utilizes the surrogate's eggs, making her the child's biological mother. During gestation, the surrogate has no biological connection to the unborn child. As the majority of altruistic surrogacy agreements involve close relatives of the intended parents, a surrogate does not receive monetary compensation. The industry includes both charitable and commercial activities. Additionally, commercial practice is restricted in the majority of nations worldwide.
What are the primary factors driving the Surrogacy Market?
The rising rate of infertility is one of the primary factors driving the surrogacy market. According to a report by the World Health Organization (WHO), infertility affects one in four couples in developing nations. In addition, 60–80 million couples worldwide suffer from infertility annually, of which 15–20 million (25%) reside in India alone. In addition, lifestyle choices such as smoking have an impact on both men's and women's fertility rates. For example, smoking women have a significantly lower pregnancy rate. In addition to stress, nutrition, alcohol, and obesity, other lifestyle factors influence fertility rates. In addition to lifestyle changes, various diseases such as sexually transmitted diseases (STDs) and fertility-related diseases also contribute to the increase in infertility rates. Consequently, future infertility rate growth is anticipated to boost market expansion.
The increasing prevalence of male and female infertility increases the demand for fertility treatment. Globally, delayed parenthood, obesity, sexually transmitted infections (STIs), and aging increase the incidence of sterility among married couples. Medications that aid hormones and ovulation are frequently used to treat infertility, sometimes in conjunction with minor surgical procedures. Assisted reproductive technology (ART) includes procedures that facilitate sperm fertilization of an egg and egg implantation in the uterine lining, among others. ART also includes cryopreservation (freezing of eggs, sperm, or embryos), egg or embryo donation, and gestational carriers (surrogacy). In addition, IUI (intrauterine insemination) and IVF (in vitro fertilization) with or without ICSI are two of the most common fertility treatments used in surrogacy. In addition, the intracytoplasmic sperm injection method has revolutionized male infertility treatment by requiring a smaller number of sperm that are injected into the egg, thereby stimulating market growth.
Each country has its own rules and regulations regarding surrogacy, which can complicate the procedure. For example, some countries consider surrogate mothers to be the legal guardian of the child until a certain process is completed, and prospective parents may be required to specify whether they want a surrogate to be paid directly rather than through an agency. In addition, countries such as Italy, Spain, France, Portugal, Bulgaria, and Germany prohibit all forms of surrogacy. Other nations, such as the United Kingdom, Denmark, Ireland, and Belgium, only permit surrogacy if the surrogate is doing it for philanthropic purposes and is receiving no compensation other than reimbursement for medical expenses. In addition, some nations that permit surrogacy within their borders are less receptive to their citizens seeking a surrogate abroad. This indicates that they do not want their citizens to hire a surrogate from another country. In some areas of Australia, it is illegal to obtain the services of an international surrogate. These factors tend to limit market expansion.
Fertility tourism, also known as reproductive tourism, is the practice of traveling abroad for fertility treatments. Legal restrictions, stringent regulations, the inaccessibility of fertility procedures in the home country, lower costs, and technological advancements in fertility tourism destinations are the primary causes of fertility tourism. It should be noted that different countries have different fertility tourism regulations. For instance, Costa Rica recently lifted a 16-year ban on IVF. The United States is the most sought-after country for those seeking egg donation with a gestational carrier, particularly California, which is regarded as the state most accommodating to surrogacy. Due to the higher quality of assisted reproductive technology (ART) and regulations allowing same-sex and single parents to use IVF and surrogacy to start a family, the country is primarily sought after for surrogacy.
Along with Cyprus and Greece, the United States has become the preferred destination for Turkish patients seeking fertility care. It is anticipated that fertility tourism will increase the use of fertility services, particularly in emerging markets such as Asia-Pacific and LAMEA, thereby creating lucrative opportunities for future market growth.
The global surrogacy market is segmented by type and technology.
Based on type, the global surrogacy market is bifurcated into gestational surrogacy and traditional surrogacy.
The gestational surrogacysegment is the highest contributor to the market and is expected to grow at a CAGR of 6.13% during the forecast period. The surrogate in gestational surrogacy is unrelated to the child she carries. Currently, this is the most prevalent form of surrogacy. The child is not biologically related to the surrogate mother, also known as a gestational carrier, in gestational surrogacy. The embryo is created through in vitro fertilization (IVF) using the eggs and sperm of the intended parents or donors and then transferred to a surrogate. In addition, there is no federal law governing gestational surrogacy, so it is up to individual nations to determine whether surrogacy is permitted. In the United States, it is legal in states such as Texas, Florida, and California. Consequently, the increase in the number of specialty clinics and super specialty IVF with Intracytoplasmic Sperm Injection (ICSI) reveals lucrative market opportunities in the surrogacy industry.
The traditional surrogacy segment is expected to witness a higher CAGR of 2.7%. In traditional surrogacy, a surrogate uses her own eggs to conceive, along with sperm from the intended father or a donor. It differs from gestational surrogacy, in which the surrogate becomes pregnant with an embryo created using the intended mother's egg or an egg donor's egg. In addition, traditional surrogacy is sometimes referred to as genetic surrogacy or partial surrogacy due to the surrogate's biological connection to the child she carries. In addition, people who consider traditional surrogacy are single men, same-sex male couples, and intended mothers who are unable to produce healthy eggs.
Based ontechnology, the global surrogacy market is bifurcated into IVF with ICSI, IVF without ICSI, and intrauterine insemination.
The IVF with ICSIsegment is the highest contributor to the market and is expected to grow at a CAGR of 6.2% during the forecast period. Intracytoplasmic sperm injection (ICSI) is a specialized form of in vitro fertilization (IVF) that is typically used to treat severe cases of male infertility, after multiple failed fertilization attempts with conventional IVF, after egg freezing (oocyte preservation), and for surrogacy procedures. ICSI is designed to overcome male fertility issues, such as low sperm count or poor sperm mobility, which prevent sperm from fertilizing an egg normally. It is also used for sperm that has been surgically extracted or for men whose sperm has a high level of DNA damage. In addition, a rise in prevalence due to an increase in risk factors such as obesity, stress, polycystic ovarian syndrome (PCOS), sexually transmitted infections, endometrial tuberculosis, and other medical conditions is anticipated to create lucrative growth opportunities for the market over the forecast period.
The IVF without ICSI segment is expected to witness a higher CAGR of 5.85%. In IVF without ICSI, egg and sperm are mixed in an embryology lab; there is no single spermatozoa (sperm cell) injection into the oocyte during this process. A sperm cell successfully penetrates an egg's wall to fertilize it. The fertilized egg then starts to grow and divide in the IVF lab for roughly 2 to 6 days until it develops into an embryo that can be placed in a woman's uterus. Better implantation rates, higher live birth rates, higher birth weights, lower miscarriage rates, and fewer ectopic pregnancies are additional advantages that are anticipated to boost demand for the procedure.
The global surrogacy market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
North America region is the highest contributor to the market and is expected to grow at a CAGR of 6.3% during the forecast period. The majority of the market was dominated by the United States, and this is expected to remain the case during the forecast period. Additionally, since state laws, not federal ones, govern surrogacy in the United States, each state has developed its own surrogacy-related regulations, ranging from a complete lack of regulations to more stringent regulations. As a result, there are several places in the United States where surrogacy can be carried out in a way that the intended parents are comfortable with. Further, due to affordable medical services compared to other nations, Mexico has recently become a promising surrogacy destination.
Europe is expected to witness dynamic growth in the Surrogacy market,with a CAGR of 6.1% during the forecast period. The availability of surrogacy and favorable government policies regarding IVF are what drive the European surrogacy market. The European Society of Human Reproduction and Embryology asserts that since patients in Europe are free to move for treatment, EU member states are free to enact their own medical laws. The laws governing surrogacy also differ across Europe. For instance, while commercial surrogacy is prohibited in the UK, altruistic surrogacy is legal there. Surrogacy is also illegal in Italy, Spain, France, and Germany. More than 25 million people in the EU suffer from infertility, according to the European Society of Human Reproduction and Embryology. Thus, it is anticipated that a significant rise in infertility-related issues among couples who are not yet ready to have children will drive market expansion in the coming years.
Asia-Pacific is expected to witness a significant CAGR of 5.2% in the surrogacy market during the forecast period. Gestational surrogacy adoption, fertility treatments, and a rise in fertility tourism are all contributing factors to the surrogacy market's expansion. The increase in the number of infertile couples around the world is a major driver of the surrogacy market's expansion. A type of assisted reproductive technology called IVF therapy is used to treat infertility. According to the World Health Organization (WHO), one in every six couples experiences problems related to infertility worldwide. The Asia-Pacific region of the world has the highest potential and presents profitable opportunities for the expansion of the surrogacy market. The most important factor fueling market expansion is the extremely low fertility rates in Asia-Pacific nations.
The LAMEA region is expected to witness a moderate CAGR of 6.2% in the global surrogacy market during the forecast period. Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela have seen an increase in the transnational phenomenon of families using surrogate mothers for commercial and altruistic surrogacy. To simultaneously protect surrogates, intended parents, and the offspring they carry, changes in law, regulation, and policy are required. The difficulties that come with surrogacy arrangements have not been quickly addressed by these developments, especially in the region's low- and middle-income nations. Due to the strict regulations present, the development of surrogacy and infertility treatments in this area has been constrained. For instance, surrogacy is prohibited in some nations, including Saudi Arabia. Furthermore, Brazil and Chile had the lowest fertility rates in the region, according to the United Nations fertility report, which raises the demand for surrogacy in the area.
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