Press Release

Hospital Market to Grow with a CAGR of 6.92% through 2028

Increasing prevalence of diseases and increasing healthcare expenditures by different governments across the globe is expected to drive the Global Hospital Market growth in the forecast period, 2024-2028.

 

According to TechSci Research report, “Hospital Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Hospital Market stood at USD 4,522.30 billion in 2022 and is anticipated to grow with a CAGR of 6.92% in the forecast period, 2024-2028. The global hospital market is being driven by several key factors, including the rise in chronic diseases prevalence, the aging population, the increase in disposable income (especially in developing countries), and the growing penetration of health insurance services.

 

The primary drivers of this market are the sales profits generated by cutting-edge medical institutions. As knowledge and affordability continue to increase, the demand for medical services is expected to expand, as already observed in many developed countries where healthcare services contribute significantly to the growth of the Hospital Market.

 

           

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The global hospital market is projected to experience growth during the forecast period. This growth can be attributed to the increasing elderly population affected by various chronic diseases, including cancer, diabetes, cardiovascular diseases, renal disorders, and others. Consequently, the demand for treatment has risen, leading to an expanded patient pool. Additionally, the market is expected to benefit from the growing healthcare expenditures by governments worldwide and the presence of large hospital chains. Furthermore, advancements in diagnostic technologies and increased awareness are anticipated to create lucrative opportunities for market growth until 2028.

 

Healthcare services play a pivotal role in the healthcare industry, serving as its largest component. The healthcare services market encompasses pharmaceutical companies, the medical devices sector, long-term care services, healthcare facility management services, and the medical consumables industry. Among these, hospitals have the largest consumer base within the healthcare industry, making them integral to the sector. As major revenue sources, hospitals fuel research and innovation, prompting multiple corporations to invest significant efforts in revenue generation and marketing strategies to promote their products and services within hospitals. Consequently, strategic decisions within the hospital sector hold considerable power to influence other sectors within the healthcare industry, including suppliers, service providers, and distributors.

 

Advanced medical tools have paved the way for early disease detection and improved care for terminal illnesses such as cancer. Increasing affordability and awareness among people are expected to drive growth in the medical services sector, as witnessed in many countries already. This sector significantly contributes to the overall market growth. With rising healthcare costs, several developed countries have implemented health insurance schemes, which have gained popularity among customers and the general public. This popularity is expected to boost demand in the coming years. Key drivers of hospital care include an aging population, a rise in chronic diseases, an increase in disposable income (especially in developing countries), and higher health insurance penetration rates.

 

Globally, low- and middle-income countries bear a substantial disease burden. Limited access to medical facilities, as well as a scarcity of hospitals and healthcare practitioners, have hindered the development of the hospital sector in many developing nations. Private hospitals are expected to diversify their specialty service offerings and expand their reach to cater to a vast patient market that can afford quality treatments. The deployment of cloud-based electronic health records (EHRs), the implementation of big data analytics solutions, and the adoption of mobile and IoT technologies offer significant opportunities and industry-trend-based strategies in the global hospital market.

 

Rising cancer incidence worldwide, an increasing number of knee replacement surgeries, and the availability of next-generation stents are key factors anticipated to drive the global hospital industry in the forecast period. However, the high cost of surgical procedures and lack of insurance coverage may hinder market growth.

 

Over the past few decades, the cost of medical facilities has seen a significant increase. Advanced diagnostic technologies have played a crucial role in early disease detection and research for terminal diseases like cancer. Increasing affordability and awareness among people are expected to drive growth in the medical services market, which has already been observed in many countries, contributing significantly to the Gross Domestic Product (GDP).

 

With the escalating cost of healthcare facilities, several developed nations have established health insurance plans. In North America, healthcare insurance is a vital and influential sector in the healthcare industry. Its rising influence among consumers and the general public is projected to drive demand in the coming years. Furthermore, healthcare services contribute significantly to the overall revenue of the healthcare industry. Pharmaceutical companies, long-term care services, the medical devices sector, the medical consumables industry, and healthcare facility management services all play prominent roles in the healthcare services market. Hospitals, as an end-use segment, capture a significant consumer base within the healthcare industry.

 

The Global Hospital Market is segmented into ownership, type, type of services, bed capacity, regional distribution, and company.

Based on type of services, the outpatient services segment is projected to experience a significant growth rate of 7.55% during the forecast period. This segment encompasses a wide range of medical procedures, tests, and services that can be provided to patients without the need for an overnight stay in a hospital. The convenience and accessibility of outpatient services have contributed to their popularity among patients and healthcare providers alike.

 

One of the key factors driving the expansion of the outpatient services segment is the trend towards shorter patient stays. With advancements in medical technology and treatment techniques, more procedures can now be performed on an outpatient basis, eliminating the need for extended hospital stays. This not only provides convenience for patients but also helps to reduce the burden on healthcare facilities. Moreover, the high costs associated with inpatient services have also played a role in the growing demand for outpatient services. Furthermore, advancements in surgical equipment and devices have also contributed to the expansion of outpatient services. Innovations in technology have made it possible to perform a wider range of procedures safely and effectively in an outpatient setting. This has opened up new possibilities for patients who may have previously required inpatient care.

 

Based on region, North America segment is expected to grow during the forecast period. In 2022, North America emerged as a global leader, accounting for a significant revenue share in the global hospital market. The region's market growth is expected to be propelled by the rising incidence of cancer and increasing cost of medical services. Furthermore, North America is anticipated to maintain its dominance during the forecast period, attributed to its well-developed medical centers and healthcare facilities. The regional market growth is also expected to be driven by the emerging economies of Middle East, Africa, Latin America, and Asia Pacific, which have high potential government investments to improve their healthcare infrastructure.

 

The global hospital market is characterized by fragmentation, with the presence of numerous large and small firms having both global and regional focus. HCA Healthcare, Ascension Health, Tenet Healthcare Corporation, Mayo Clinic, and Community Health Systems, Inc. are among the largest hospital service providers worldwide, with a global presence. These companies have been implementing various strategies such as acquisitions, expansions, and investments, focusing on enhancing their hospital networks across North America and Europe in recent years.

 

Major companies operating in Global Hospital Market are:

  • Ramsay Health Care Limited
  • Community Health Systems, Inc.
  • Spire Healthcare Group plc
  • Tenet Healthcare Corporation
  • Universal Health Services, Inc.
  • IHH Healthcare Berhad
  • Apollo Hospitals Enterprise Limited
  • HCA Healthcare, Inc.
  • Fresenius SE & Co. KGaA
  • ORPEA Group

 

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“The market growth in the healthcare industry is expected to be fostered by increasing healthcare expenditures by different governments across the globe. This is further supported by the penetration of large hospital chains, which leads to enhanced healthcare services and accessibility. Moreover, the market is anticipated to witness lucrative opportunities due to increasing awareness among individuals regarding the importance of early diagnosis and advancements in diagnostic technologies. These advancements enable accurate and timely detection of diseases, leading to better treatment outcomes and improved patient care. Overall, these factors contribute to the positive growth trajectory of the healthcare market in the coming years.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

 

Hospital Market Segmented By Ownership (Public v/s Private), By Type (General, Specialty, Multi- Specialty), By Type of Services (In-Patient Services v/s Out-Patient Services), By Bed Capacity (Up to 100 beds, 100-500 beds, Above 500 beds), By Region and Competition, Forecast & Opportunities, 2018-2028F”, has evaluated the future growth potential of Global Hospital Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Hospital Market.

 

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