Press Release

Saudi Arabia Hospital Market to grow with a CAGR of 2.48%

Increasing healthcare infrastructure and a supportive regulatory environment are the major drivers for the Saudi Arabia Hospital Market.

 

According to TechSci Research report, “Saudi Arabia Hospital Market Industry Size, Share, Trends, Competition, Opportunity and Forecast, 2018-2028”, Saudi Arabia Hospital Market has valued at USD 20.86 billion in 2022 and is anticipated to witness an impressive growth in the forecast period with a CAGR of 2.48% through 2028.   This can be due to collaborations and partnerships among leading companies with a diverse approach to merge the expertise of individual companies and to strengthen their position in the market. Digital health transformation plays a vital role in driving the demand for the Saudi Arabia Hospital Market. The adoption of telemedicine and virtual care solutions has expanded access to healthcare services. Patients can now consult with healthcare providers remotely, which can lead to increased demand for hospital services when in-person care or hospitalization is required. Digital health transformation has facilitated the adoption of EHR systems, which enhance the coordination of care, streamline patient information, and reduce medical errors. Hospitals with robust EHR systems may be preferred by patients seeking well-integrated healthcare services. Digital health tools allow for the remote monitoring of patients with chronic conditions. Hospitals that offer remote monitoring services can provide more proactive and personalized care to patients, leading to increased demand for their services. Digital tools that enable patients to schedule appointments online and access their health records via patient portals enhance the patient experience. Hospitals offering these features may attract tech-savvy patients who seek convenience.

 

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In February 2022, The Ministry of Health in Saudi Arabia has introduced the Middle East's pioneering virtual hospital known as the "Seha Virtual Hospital." The inauguration was attended by Minister of Health Fahd Al-Jalajel and Minister of Communications and Information Technology Eng. Abdullah Al-Sawaha. What sets the Seha Virtual Hospital apart is its distinction as the world's largest of its kind and the first in the Middle East, representing the cutting edge of virtual healthcare. This virtual hospital is a specialized facility that leverages the latest innovative technologies to provide highly specialized services in support of healthcare facilities throughout the Kingdom of Saudi Arabia. It plays a crucial role in supporting 130 hospitals across the nation by offering a range of rare specialties and over 30 specialized services spanning various medical fields and subspecialties. Additionally, it facilitates the transfer of knowledge to newly graduated doctors, enhancing the efficiency of medical services. It aims to make its services accessible throughout Saudi Arabia and offers a platform for receiving requests and inquiries from various specialized clinics in different hospitals. The establishment of the Seha Virtual Hospital aligns with the objectives of Saudi Arabia's Vision 2030, as it represents a key initiative in the transformation of the healthcare sector.

Quality and accreditation are important challenges in the Saudi Arabia Hospital Market, as maintaining high healthcare standards is crucial for patient safety and satisfaction. Ensuring consistent healthcare quality and standards across all healthcare facilities, especially in a rapidly expanding and diverse healthcare system, can be a challenge. Achieving and maintaining international accreditation standards, such as Joint Commission International (JCI) accreditation, can be resource-intensive and time-consuming. Ensuring that healthcare professionals are well-trained and adhere to best practices is essential for maintaining quality care. Continuous staff training and development can be challenging in a dynamic healthcare environment. Adhering to strict patient safety protocols, reducing medical errors, and minimizing hospital-acquired infections require continuous efforts and resources. Accurate data collection, reporting, and performance monitoring are necessary for quality improvement. Developing and maintaining robust data systems can be complex.

Saudi Arabia Hospital Market is segmented based on Type, Ownership, Type of Services Bed, Capacity, and by region.  Based on the Type, Saudi Arabia Hospital Market is segmented into General, Specialty, Multi- Specialty. A super specialty hospital, often referred to as a super specialty hospital, is a type of healthcare facility that focuses exclusively on providing highly specialized medical services, advanced treatments, and expertise in a specific medical field or subspecialty. These hospitals are known for their concentration of advanced technology, specialized medical professionals, and a comprehensive range of services within a specific medical area. Super specialty hospitals are dedicated to a particular medical field or subspecialty. This specialization allows them to excel in diagnosing and treating complex medical conditions and providing advanced care. These hospitals are equipped with state-of-the-art medical equipment and technology specific to their area of expertise. This includes advanced diagnostic tools, surgical equipment, and treatment modalities.

Based on Region, Northern & Central region held the largest share in the Saudi Arabia Hospital Market. Northern and Central regions tend to attract a higher concentration of medical professionals, researchers, and healthcare experts. This concentration of expertise is appealing to patients seeking specialized care and plays a role in the regions' dominance in the healthcare market. The Northern and Central regions are also known for their educational and research institutions, which are often closely linked to the healthcare sector. This leads to a strong foundation for medical education, research, and innovation, further driving healthcare development. Government healthcare initiatives and reforms have often been rolled out in major urban centers like Riyadh (Central region), benefiting the Northern and Central regions with enhanced healthcare infrastructure and services. The Northern and Central regions are transportation hubs, making them easily accessible to patients from other parts of the country. This accessibility can drive demand for healthcare services in these regions.

 

Some of the major companies operating in the Saudi Arabia Hospital Market include:

  • Middle East Healthcare Co.
  • King Faisal Specialist Hospital and Research Centre
  • National Guard Health Affairs Hospital
  • Riyadh Military Hospital
  • Royal Commission Hospital
  • Abeer Medical Group
  • King Fahad Medical City
  • King Saud University Medical City
  • Dr. Sulaiman Al Habib Medical Group
  • Al Mouwasat Hospital

 

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“Certain areas, particularly in Saudi Arabia, are projected to exert significant demand for Hospital. The growth in the competitive landscape and the presence of well-established companies in the market, committed to enhance the overall wellbeing of people each year, are expected to contribute to a remarkable growth of the Saudi Arabia Hospital Market in the forecast period," said Mr. Karan Chechi, Research Director with TechSci Research, a research-based Global management consulting firm.

Saudi Arabia Hospital Market by Ownership (Public, Private) By Type (General, Specialty, Multi- Specialty) By Type of Services (In-Patient Services, Out-Patient Services) By Bed Capacity (Up to 100 beds,100-500 beds, above 500 beds), By Region, By Competition Forecast & Opportunities, 2018-2028F has evaluated the future growth potential of Saudi Arabia Hospital Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide innovative 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 Saudi Arabia Hospital Market.


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