The North America outbound medical tourism services market is expected to reach a market valuation of US$ 15.53 billion by 2016 end and is projected to reach a value of US$ 150.36 billion by 2026.
Large ageing baby boomer population, increasing uninsured population in parallel to enhanced technology and various treatment options are factors due to which the market will account for significant revenue growth in the near future. Economic factors such as rising rate of health insurance premiums, expensive medical treatments in the U.S. and medical tourism for business purposes will further escalate growth of the market in North America. Into the bargain, surge in cosmetic correction procedures and dental treatments will pull up demand for outbound medical treatment services, which will make it a lucrative market in the coming years. Conversely, other factors impacting the market in North America include long waiting time for appointment by specialist and growing preference for non-conventional treatment options. According to International Society of Aesthetic Plastic Surgery, the U.S. held major market for cosmetic procedures in 2015.
Rampant medical malpractices in medical tourism destinations and lack of effective follow-up care on returning home, proliferation of superbugs in medical tourism destinations, problems associated with language barriers and privacy concerns are factors that could pose challenges for the market.
Among various therapeutic surgeries performed, customers mainly opt for cosmetic surgery treatment relatively more. Whereas, cancer treatment will grow at a CAGR of 22.0% in the near future. Furthermore, orthopaedic treatment will feature among preference list of customers too, due to compelling factors.
Among various countries, U.S. will account for major share in the North America market in terms of revenue, which will further grow at a CAGR of 25.7% in the near future. Conversely, Canada will grow at a CAGR of 18.1% and have comparatively less market potential for outbound medical tourism services.
Market expansion and strategic alliances are some strategies adopted by major market players in order to maintain their market share. Some companies are further adopting strategies such as backward integration to support their core business of medical tourism. Insurance and financing for medical tourism are offered by companies that mainly focus on expanding their global footprint by enhancing their foreign customer base. Leading market players operating in the market include Apollo Hospital Enterprise Limited, Bumrungrad International Hospital, KPJ Healthcare Berhad, Christus Muguerza Hospital, WorldMed Assist, Mednamaste and Global Medical Tourism Inc.