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The healthcare services market size is forecast to increase by USD 6,263.7 billion at a CAGR of 8.73% between 2023 and 2028. The market is experiencing significant growth due to several key drivers, including the increasing prevalence of chronic diseases worldwide. According to the World Health Organization, non-communicable diseases account for global deaths, making chronic disease management a critical area of focus for healthcare providers. Another trend transforming the industry is the rise in the adoption of telemedicine, which offers convenience and cost savings for patients while enabling remote monitoring and timely interventions. However, the market also faces challenges, including escalating healthcare costs and regulatory complexities. To address these challenges, stakeholders are exploring innovative solutions such as value-based care models, digital health technologies, and strategic partnerships to improve patient outcomes and contain costs.
The market encompasses a wide range of services aimed at maintaining and improving the health and wellbeing of individuals. Key areas of focus include patient consumerism, insurance coverage, and quality care. Patient engagement is increasingly important, driven by digital health technologies such as telehealth, electronic health records, and value-based care. Regulatory impact plays a significant role, with service expansion in areas like inpatient services, outpatient services, publicly owned hospitals, and private hospitals. Healthcare infrastructure development is ongoing, addressing chronic diseases, medical tourism, and universal healthcare. Disease detection, treatment research, and medical innovation are essential, with medical service providers, medical diagnostic laboratories, dental treatment, residential drug abuse, psychological health facilities, long-term care, medical devices, and medical consumables all contributing to the market's growth.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The adult care segment is estimated to witness significant growth during the forecast period. The market is experiencing significant transformation due to increasing patient consumerism, insurance coverage expansion, and the prioritization of quality care. Patient engagement is at the forefront of this evolution, with digital health technologies, telehealth, and electronic health records playing crucial roles. Value-based care is also gaining prominence, leading to regulatory impact and service expansion in areas such as inpatient and outpatient services.
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The adult care segment was the largest segment and was valued at USD 4.38 billion in 2018. Publicly and privately owned hospitals are investing in healthcare infrastructure to cater to the needs of an aging population and those with chronic diseases. Medical tourism and universal healthcare are shaping the industry landscape, with telemedicine and patient-centric care becoming essential components. Strategic partnerships between medical service providers, medical diagnostic laboratories, and medical device and medical consumable manufacturers are driving innovation and medical research in areas like disease detection, treatment, and economic growth. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Market is experiencing significant transformation through various initiatives aimed at enhancing patient care and reducing costs. One such initiative is the adoption of bundled payments, where a single payment is made for a specific episode of care, encompassing multiple services and providers. Digital tools are also increasingly being integrated into healthcare delivery, enabling remote monitoring, telemedicine, and electronic health records. Cross-industry partnerships are emerging between technology companies, healthcare providers, and insurers to develop innovative solutions. Hence, such factors are driving the market in North America during the forecast period.
The increasing prevalence of chronic diseases is notably driving market growth. Chronic diseases, including cardiovascular diseases (CVDs), cancer, chronic obstructive pulmonary disease (COPD), and type-2 diabetes, are major health concerns worldwide, accounting for 74% of all global deaths according to the World Health Organization (WHO). These diseases are often caused by unhealthy lifestyles, such as poor diets, insufficient physical activity, and tobacco use.
For instance, CVDs alone cause 17.9 million deaths annually, making it a leading cause of non-communicable diseases (NCDs). In response to the increasing burden of chronic diseases, the healthcare services industry is undergoing significant transformations. Patient consumerism is driving the demand for quality care and engagement. Thus, such factors are driving the growth of the market during the forecast period.
Rise in adoption of telemedicine in healthcare sector is the key trend in the market. The market has undergone substantial evolution, primarily driven by the growing adoption of telehealth or telemedicine. Telehealth refers to the utilization of digital communication and technology to deliver remote clinical healthcare services. This innovative approach has gained significant traction, offering numerous advantages to both healthcare providers and patients.
Moreover, one of the primary reasons for the widespread acceptance of telehealth is the enhanced accessibility to healthcare services. Telehealth bridges the gap for patients in geographically remote or underserved regions, allowing them to consult healthcare professionals remotely, thereby eliminating the need for physical travel. Thus, such trends will shape the growth of the market during the forecast period.
Increasing healthcare costs is the major challenge that affects the growth of the market. The escalating expenses in the healthcare services sector pose significant challenges to patient access, quality care, and the long-term sustainability of healthcare systems worldwide. According to the Centers for Medicare and Medicaid Services (CMS), US healthcare spending reached approximately USD 4.5 trillion or USD 13,493 per person in 2022, marking a 4.1% increase from the previous year.
Moreover, this growth places a considerable burden on individuals and families, limiting their ability to afford essential medical treatments and services. Quality care remains a top priority, with digital health technologies, telehealth, and electronic health records becoming increasingly important in delivering value-based care. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Apollo Hospitals Enterprise Ltd: The company offers healthcare services such as primary care diagnostic clinics and others.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a dynamic and complex industry that continues to evolve, driven by various factors such as Patient Consumerism, Insurance Coverage, and the need for Quality Care. Patient Engagement is a critical aspect of modern healthcare, with Digital Health Technologies like Telehealth, Electronic Health Records, and Telemedicine playing a pivotal role. Value-Based Care is another significant trend, with regulatory impact shaping the industry's direction. Service Expansion in areas like Inpatient Services, Outpatient Services, Publicly Owned Hospitals, and Private Hospitals is a priority for Medical Service Providers. Healthcare Infrastructure development is essential for addressing the needs of an aging population and economic growth. Chronic Diseases, Medical Tourism, and Universal Healthcare are other significant areas of focus. Strategic Partnerships, Tele-ICU, Carbon-Neutral Hospitals, and Expenditure on medicine are key areas of investment for Medical Innovation and Treatment Research. Medical diagnostic laboratories, Dental treatment, Residential drug abuse, Psychological health facilities, Long-term care, Medical device, and Medical consumables are essential components of comprehensive healthcare services. Lifestyle changes and the rise of chronic diseases necessitate a Patient-Centric Care approach. The market for healthcare services is vast and diverse, encompassing various sectors and sub-sectors, each with its unique challenges and opportunities.
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Market Scope |
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Report Coverage |
Details |
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Page number |
215 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.73% |
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Market growth 2024-2028 |
USD 6.263.7 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.43 |
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Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
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Performing market contribution |
North America at 35% |
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Key countries |
US, Germany, and China |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Apollo Hospitals Enterprise Ltd, athenahealth Inc., Community Health Systems Inc., CVS Health Corp., DaVita Inc., Dr Lal PathLabs Ltd., Expedient Healthcare Marketing Pvt. Ltd., Fresenius Medical Care AG and Co. KGaA, Genesis Healthcare Inc., iHealth Labs Inc., Max Healthcare Institute Ltd, Mayo Foundation for Medical Education and Research, McKesson Corp., OMH HealthEdge Holdings LLC, Optum Inc., Quest Diagnostics Inc., Sonic Healthcare Ltd., Universal Health Services Inc., and West Suffolk NHS Foundation Trust |
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Market dynamics |
Parent market analysis, market report , market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by End-user
9 Market Segmentation by Service
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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