Healthcare Services Market to Grow by USD 6.26 Trillion from 2024-2028, Driven by Rising Chronic Diseases, with AI Driving Market Transformation - Technavio

NEW YORK, Feb. 7, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global healthcare services market size is estimated to grow by USD 6.26 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 8.73% during the forecast period. Increasing prevalence of chronic diseases is driving market growth, with a trend towards rise in adoption of telemedicine in healthcare sector. However, increasing healthcare costs poses a challenge. Key market players include 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 Driver

The healthcare services market is experiencing significant trends, including patient consumerism, insurance coverage, and quality care. Patients are increasingly seeking personalized, patient-centric care, driving the need for digital health technologies like telehealth, electronic health records, and tele-ICUs. Value-based care and bundled payments are becoming the norm, with an emphasis on disease detection, treatment research, and medical innovation. Regulatory impact, service expansion, and economic growth are also shaping the market. Chronic diseases, medical tourism, and universal healthcare are major areas of focus. Publicly and privately owned hospitals offer inpatient and outpatient services, including cardiovascular, acute care, cancer care, diagnostics, imaging, neurorehabilitation, psychiatry services, gynecology, and more. Infrastructure development, mental health treatment, and long-term care are crucial areas of investment. Medical service providers, medical diagnostic laboratories, dental treatment, residential drug abuse facilities, and psychological health facilities are essential components of the market. Key players include HCA Healthcare, Ascension Health, Tenet Healthcare, Mayo Clinic, Community Health Systems, Fresenius Medical Care, Quest Diagnostics, Genesis Healthcare, Universal Health Services, and others. The market is also witnessing trends like carbon-neutral hospitals, cross-industry partnerships, and novel drugs. Expenditure on medicine, healthcare costs, health insurance plans, and communication technology are critical factors influencing the market's growth. The elderly population, lifestyle changes, and economic growth are also driving demand for healthcare services. Inpatient services and outpatient services have different market shares, with non-emergency care and community hospitals gaining popularity. Isolation wards, patient beds, and communication technology are essential for effective patient care. 

The healthcare industry has undergone notable changes, primarily due to the increasing use of telemedicine. Telemedicine, a digital approach to healthcare delivery, has gained popularity in the global healthcare services market. It allows for remote clinical health care services through digital communication and technology. This innovation significantly expands healthcare accessibility, particularly for those in remote or underserved areas, who can now consult healthcare professionals without physical travel. Telemedicine offers numerous advantages, including reduced travel costs, increased convenience, and improved patient outcomes. 

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Market Challenges

• The healthcare services market faces several challenges in today's business environment. Patient consumerism is on the rise, requiring providers to prioritize patient engagement and personalized care. Insurance coverage and affordability remain major hurdles, with value-based care and bundled payments becoming increasingly popular. Quality care is non-negotiable, and digital health technologies like telehealth, electronic health records, and tele-ICU are transforming the industry. Regulatory impact and service expansion are also key considerations, particularly in areas like inpatient and outpatient services, publicly and privately owned hospitals, and chronic disease management. Healthcare infrastructure, medical innovation, and economic growth are interconnected, with a focus on carbon-neutral hospitals, medical devices, consumables, and mental health treatment. The elderly population's needs, lifestyle changes, and disease detection are essential factors in strategic partnerships and cross-industry collaborations. Market leaders like Community Health Systems, Fresenius Medical Care, Quest Diagnostics, Genesis Healthcare, Universal Health Services, and major healthcare systems are adapting to these challenges through digital tools, novel drugs, and hybrid imaging techniques. The future of healthcare services will be shaped by healthcare costs, health insurance plans, and the ongoing transformation of acute care, cardiovascular, cancer care, diagnostics, imaging, neurorehabilitation, psychiatry services, gynecology, and more.
• The global healthcare services market faces substantial challenges due to escalating healthcare costs. This trend negatively affects various aspects, including access to care and service quality. For instance, US healthcare spending grew 4.1% in 2022, reaching approximately USD4.5 trillion or USD13,493 per person (Centers for Medicare and Medicaid Services). This increase in costs makes it harder for individuals and families to afford essential medical treatments and services. Consequently, access to care becomes limited, potentially impacting overall healthcare system sustainability.

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Segment Overview 

This healthcare services market report extensively covers market segmentation by

• End-user
• Adult Care
• Geriatric Care
• Pediatric Care
• Service
• Hospitals And Clinics
• Primary Care Services
• Long-term Care Services
• Home Healthcare
• Others
• Geography
• North America
• Europe
• Asia
• Rest Of World (ROW)

1.1 Adult care- The adult care segment in the healthcare services market caters to the unique healthcare needs of adults, ranging from young adults to older individuals. This segment includes preventive screenings, chronic disease management, acute care for illnesses and injuries, behavioral health services, and women's health services. Adult care providers collaborate to deliver comprehensive care, including primary care physicians, specialists, nurses, therapists, and allied health professionals. The adult care segment addresses the growing healthcare needs of the global population, including the rising prevalence of chronic conditions, mental health disorders, lifestyle-related illnesses, and age-related health concerns. Providers focus on preventive care, early detection, and personalized treatment plans to optimize health outcomes and improve quality of life. Advancements in medical research, technology, and treatment modalities have enhanced adult care services, enabling tailored treatments, precision medicine, and minimally invasive procedures. Digital health solutions, telemedicine, and electronic health records facilitate improved care coordination, patient engagement, and access to services. The adult care segment is evolving to meet changing healthcare needs, emphasizing holistic care approaches, patient-centered care models, and shared decision-making. Healthcare organizations promote health and wellness initiatives, lifestyle modifications, and patient education to empower adults to manage their health and preventive care. These factors are expected to drive the growth of the adult care segment in the global healthcare services market.

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Research Analysis

The healthcare services market is experiencing a significant shift towards patient-centric care, with an increasing focus on consumerism and personalized treatment plans. Insurance coverage continues to play a crucial role in accessing quality care, while digital health technologies, telehealth, and electronic health records are revolutionizing the industry. Value-based care is becoming the norm, with regulatory impact shaping the landscape. Service expansion includes inpatient and outpatient services, publicly and privately owned hospitals, medical infrastructure development, and medical innovation. Chronic diseases, medical tourism, and universal healthcare are major areas of focus, along with disease detection, treatment research, and medical service providers. Dental treatment, psychological health facilities, long-term care, medical devices, and consumables are essential components of comprehensive healthcare services. Medical diagnostic laboratories and residential drug abuse facilities are also integral parts of the healthcare ecosystem.

Market Research Overview

The healthcare services market is experiencing a significant shift towards patient-centric care, driven by the rise of patient consumerism and the increasing importance of insurance coverage. Digital health technologies, including telehealth and electronic health records, are revolutionizing the industry, enabling better patient engagement and value-based care. The regulatory landscape continues to evolve, impacting service expansion and the adoption of innovative technologies. Inpatient and outpatient services are in high demand, with publicly and privately owned hospitals providing various offerings, from acute care and cardiovascular services to gynecology and psychiatry. Chronic diseases, medical tourism, and the aging population are driving expenditure on medicine, medical devices, and consumables. Telemedicine, disease detection, and treatment research are key areas of investment, with strategic partnerships and cross-industry collaborations playing a crucial role in driving medical innovation. The economic growth and lifestyle changes are also influencing healthcare costs and health insurance plans. The market encompasses various types of hospitals, including state-owned, private, and public, and offers a range of services, from isolation wards and non-emergency care to long-term care and psychological health facilities. The market's future growth will be influenced by factors such as bundled payments, digital tools, and the adoption of carbon-neutral hospitals.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Adult Care
• Geriatric Care
• Pediatric Care
• Service
• Hospitals And Clinics
• Primary Care Services
• Long-term Care Services
• Home Healthcare
• Others
• Geography
• North America
• Europe
• Asia
• Rest Of World (ROW)

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio