A medical tourism market report by Technavio expects the market size to grow $16.88 billion between 2020 and 2025. The segment witnessed a year-on-year growth of 22.93% in 2021. However, the growth momentum is expected to decelerate at a CAGR of 16.04% during the forecast period. The report provides an updated analysis of the current market scenario, latest trends and drivers, and the overall market environment. The global medical tourism market is fragmented due to high product penetration and brand building. Competition in the market is expected to intensify during the forecast period with an increase in product or service extensions, technological innovations, mergers and acquisitions, and joint ventures. The lack of a strong distribution network may limit the entry of new players.
Therefore, suppliers must expand geographically while reviving domestic demand to achieve sustained growth. The availability of lowcost treatment options has been instrumental in driving market growth. However, lack of advanced infrastructure in developing countries could hinder market growth. Competitors need to focus on differentiating their product offerings with unique value propositions to strengthen their market presence. Market vendors also need to take advantage of existing growth prospects in fast-growing segments, while maintaining their positions in slow-growing segments.
The global medical tourism market is segmented as follows: Treatment type; Cardiovascular Treatment; Cosmetic treatment; Fertility treatment; and Orthopaedic treatment. The cardiovascular treatment segment will hold the largest market share. The segment is primarily driven by the rising prevalence of cardiovascular diseases caused by an increase in the number of risk factors such as rheumatic heart disease, hypertension, obesity, and diabetes.
In addition, the increased focus of vendors on providing cost-effective devices will have a positive impact on the growth of the segment. The medical tourism market is growing steadily in North America. The region will account for 32% of the market share during the forecast period. The wide availability of high-quality healthcare facilities in the U.S. and Canada is driving the regional market growth. Moreover, increasing awareness and affordability of medical services in Mexico will positively influence the growth of the medical tourism market in North America during the forecast period.
*Culled: Tourism and Society Think Tank