A new report from Polaris Market Research predicts that the global medical tourism market will reach US$80.07 billion by 2032, up from $13.69 billion in 2024. It is expected that the industry will generate a compound annual growth rate (CAGR) of 24.7% from 2024 to 2032.

The US is one of the biggest markets for medical tourism, with two million of its citizens travelling abroad for treatment each year due to the country’s own high medical costs.

Report highlights

• The medical tourism market is experiencing significant growth owing to factors including lack of insurance coverage in less-developed countries, rising demand for specialised treatments, and developments in healthcare technology
• Based on region, Asia Pacific held the largest medical tourism market share in 2023.

Market key players

• Apollo Hospitals Enterprise
• Bangkok Hospital
• Bumrungrad International Hospital
• BL Kapur Memorial Hospital
• Kasemrad International Hospital Rattanathibet
• MIOT Hospital
• Mission Hospital
• MOHW Hengchun Tourism Hospital
• Mount Elizabeth Hospitals
• Penang Adventist Hospital
• Raffles Medical Group.

Growth drivers and trends

Robust government support
Patients are increasingly travelling abroad to seek advanced procedures and effective treatments for their medical conditions. To cater to the needs of international medical tourists, numerous national governments are investing in healthcare infrastructure and adopting strategies to promote health and wellness tourism within their nations. This is fuelling medical tourism market growth, according to Polaris.

Affordable medical services in underdeveloped nations
Patients can receive high-quality medical care in underdeveloped nations at low costs compared with those of developed nations. The availability of advanced medical treatments at these reduced prices is driving people to relocate to these regions, fuelling the medical tourism market demand, says Polaris.

Lack of insurance coverage
Many surgeries, such as weight loss, cosmetic, and certain dental procedures covered by insurance companies in countries like Malaysia and Thailand, are not covered by insurance providers in the US. As a result, an increasing number of people are travelling to Malaysia and Thailand for these medical treatments, which propels market expansion, the report explains.

Which region dominates the medical tourism market globally?

The Asia-Pacific medical tourism market accounted for the largest share in 2023 and Polaris expects it to continue to dominate the market during the forecast period. This is because, compared with US private healthcare facilities, medical treatment is more than 90% cheaper in Asia-Pacific countries.

India’s health insurance industry is expected to grow at a CAGR of 12.8% over the next four years.