Healthcare Services Market Definition
The healthcare services market consists of sales of healthcare services and related goods by entities (organizations, sole traders and partnerships) that provide human healthcare services. This industry includes establishments that provide services such as medical and diagnostic laboratory services, dental services, nursing care, residential substance abuse and mental health facilities and other healthcare services.
Healthcare Services Market Size
The global market for healthcare services reached a value of nearly $6707.3 billion in 2018, having grown at a compound annual growth rate (CAGR) of 7.6% since 2014, and is expected to grow at a CAGR of 9.3% to nearly $9,581.0 billion by 2022.
Growth in the historic period resulted from rapid growth in the size of elderly populations, strong economic growth in emerging markets, health insurance reforms and home care/monitoring. Factors that negatively affected growth in the historic period were low healthcare access, and shortages of skilled human resources.
Going forward, faster economic growth, technological developments, changes in lifestyles and improved survival and quality of life will drive the growth. Factors that could hinder the growth of this market in the future are government regulations, interest rate increases and government provisions in healthcare services.
Healthcare Services Market Drivers
The key driver of the healthcare services market include:
Changes In Lifestyles – Changes in lifestyles and an increase in sedentary jobs are transforming the disease profile of the world population from communicable disease to non-communicable disease such as cancer, diabetes and cardiovascular diseases. China and India together had about 154 million diabetic patients in 2014, and India is expected to have about 100 million diabetic patients by 2030.In 2017, in the US there were 31.8 million people living with diabetes or prediabetes. And expected to reach 53.1 million in 2025. Lifestyle changes are expected to be a major driver of the healthcare services market.
Healthcare Services Market Restraints
The key restraint on the healthcare services market include:
Shortage Of Skilled Human resources – Increased competition among healthcare services firms and a lack of suitably trained doctors, consultants and nurses contributed to a shortage of labor in the healthcare services industry in this period. Developing countries face an extreme shortage of doctors as demand for healthcare services rises. In 2014, there were only 2 medical doctors per 1000 population. However, developed nations are witnessing a similar crisis. According to AAMC’s report, USA is currently facing a shortage of doctors, primarily primary care doctors. According to the World Bank, the country has 2.5 physicians per 1000 people. This was mainly due to the lack of right skills, lack of education, and right work experience among candidates. Going forward, this problem will continue to act as a restraint on the healthcare services market.
Healthcare Services Market Trends
Major trends influencing the healthcare services market include:
Shared Medical Appointments
The shared medical appointments (SMA) model is being increasingly adopted globally to optimize resources and reduce costs. This is a model generally defined as multiple patients being seen as a group by a multi-disciplinary medical care team for follow-up or routine care. It is being adopted by hospitals to create awareness and counsel individual patients dealing with similar medical conditions. The SMA supplements the traditional physician-patient appointment. SMAs provide individual evaluation and disease management for each patient at the same time that they provide counseling to the patient within a group setting. SMAs are currently used to address diabetes, asthma, ulcerative colitis, MS, cancer, HIV, menopause, insomnia and stress.
Mobile and IoT Technology Adoption
Mobile and IoT technologies are being implemented by hospitals to provide information to the stakeholders in the hospital ecosystem. This technology offers real time visibility of patient health through active and passive data collection. This technology can monitor medical conditions and prevent life threatening diseases. It enables healthcare providers to make accurate and informed decisions on patients’ health. Data generated through I0T devices is becoming critical for patient care managers, and patients to diagnose, track and treat medical conditions. Major hospitals adopting IoT technology in the USA include HCA, Mercy Virtual Care Center and Kaiser Permanente.
Opportunities And Recommendations In The Healthcare Services Market
Opportunities – The top opportunities in the global healthcare services market will arise in hospitals and clinics segment which will gain $1,688.3 billion of global annual sales by 2022. The healthcare services market size will gain the most in China at $657.3 billion. Healthcare services -trend-based strategies include increasing the adoption of bundled payments, using digital tools and adopting shared medical appointments by companies. Players adopted strategies in the healthcare services industry include acquiring companies in similar industries to expand their presence and focusing on offering quality services to their patients.
Recommendations – To take advantage of these opportunities, The Business Research Company among a number of other strategies recommends the healthcare services companies to collaborate across verticals and industries to provide value-based healthcare, adopting cloud-based electronic health records, and expanding in emerging markets, among other strategies.
Healthcare Services Market Segmentation
The Healthcare Services market is segmented by type of service, by end user gender, and by geography.
By Service Type-
The healthcare services market can be segmented by service type into
Hospitals and clinics had the highest growth rate of nearly 8.2% during the historic period. Health insurance programs by governments, funds from private healthcare, increased public spending on infrastructure, changes in lifestyles, the rise in disposable incomes and medical tourism, and changes in lifestyles that lead to lifestyle diseases.
- a) Hospitals And Clinics
- b) Physicians And Other Health Practitioners
- c) Nursing Care
- d) Dental Services
- e) Medical And Diagnostic Laboratory Services
- f) Residential Substance Abuse And Mental Health Facilities
- g) Ambulance Services
- h) All Other Ambulatory Health Care Services
By End User Gender-
The healthcare services market can be segmented by end user gender into
Growth has accelerated in both the segments of the global healthcare services market by end-user gender.
By Type Of Expenditure -
Public And Private -
The healthcare services market can be segmented by type of expenditure into
By Geography- The healthcare services market is segmented into
- o North America
- o Western Europe
- o Asia Pacific
- o Eastern Europe
- o South America
- o Middle East
- o Africa
North America is the largest market for healthcare services, accounting for almost 41.1% of the global market. It was followed by Asia-Pacific, Western Europe, and then the other regions. Going forward, Asia-Pacific and Africa will be the fastest growing regions in this market.
Healthcare Services Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • National Health Service
- • Kaiser Permanente
- • Fresenius Medical Care AG & Co. KGaA
- • Community Health Systems, Inc.
- • DaVita Inc.
- • Universal Health Services, Inc.
- • Quest Diagnostics Incorporated
- • Mayo Clinic
- • Cleveland Clinic
- • Laboratory Corporation of America
- • Envision Healthcare Corporation
- • The Johns Hopkins Health System Corporation
- • Kindred Healthcare
- • Genesis Healthcare
- • University Of Maryland Medical Center
- • Sonic Healthcare Limited
- • Encompass home health
- • Brookdale Senior Living
- • Memorial Sloan Kettering
- • Acadia Healthcare Company
- • The Ensign Group, Inc.
- • Providence Service Corporation
- • Amedisys Inc.
- • St. Jude Children`s Research Hospital
- • American Medical Response, Inc.
- • Elekta
- • Air Methods Corporation
- • Falck A/S
- • Amedisys Inc.
- • Thermo Fisher Scientific
- • Rural/Metro Corporation
- • RadNet
- • OPKO Health
- • Alliance healthcare services
- • Integrated Dental Holdings (IDH)
- • Eurofins
- • Acadian Ambulance Service, Inc.
- • GGNSC Holdings, LLC
- • Magellan Health, Inc.
- • Henry Schein, Inc.
- • The British United Provident Association Limited (BUPA)
- • AAC Holdings
- • Abano Healthcare Group Limited
- • Exact Sciences
- • American Dental Partners, Inc.
- • Aspen Dental Management, Inc.
- • Coast Dental Services, LLC
- • InterDent, Inc.
- • Haven Behavioral Healthcare, Inc.
- • Q & M Dental Group (Singapore) Limited
- • Behavioral Health Network, Inc.
- • Nxstage Medical Inc.
- • Myriad Genetics
- • Natus Medical
- • Healthway Medical Corp Ltd
- • Massachusetts General Hospital
- • University of Michigan Hospital
- • UCSF Medical Center
- • UCLA Medical Center
- • Cedars-Sinai Medical Center
- • Victoria General Hospital
- • Sturgeon Community Hospital Foundation
- • Grace Hospital
- • Chaleur Regional Hospital
- • Perth And Smiths Falls District Hospital
- • St. Joseph’s Health Care
- • The Ottawa Hospital
- • Upper River Valley Hospital
- • Princess Margaret Cancer Centre
- • Hospital Español
- • General Hospital of Mexico
- • Lovelace Medical Group
- • Freeman Hospital
- • Birmingham Children’s Hospital
- • St Thomas Hospital
- • Assistance Publique Hôpitaux de Paris
- • University Clinic Heidelberg (Universittsklinikum Heidelberg)
- • Erasmus Medisch Centrum (Universitait Medisch Centrum Rotterdam)
- • Asklepios Klinikum Bad Abbach
- • Leiden University Medical Center / Leids Universitair Medisch Centrum
- • BMI Health Care
- • All India Institute of Medical Sciences (AIIMS)
- • Postgraduate Institute of Medical Education & Research (PGIMER)
- • Christian Medical College
- • Apollo Specialty Hospital
- • Fortis Hospital
- • Tata Memorial Hospital
- • Sino care Group
- • Benq Hospital
- • Aier Eye Hospital Group
- • Phoenix Healthcare Group
- • Chindex International Inc
- • National Hospital Organisation Medical centre
- • National Cancer Center Hospital
- • Beppu National Rehabilitation Center for Persons with Severe Disabilities
- • Royal Melbourne Hospital
- • Royal Children’s Hospital
- • Sir Charles Gairdner Hospital
- • Royal Brisbane and Women’s Hospital
- • Auburn Hospital
- • Bumrungrad International Hospital
- • Asan Medical Centre
- • Gleneagles Hospital
- • Hong Kong Sanatorium and Hospital
- • Wooridul Spine Hospital
- • Russian Children`s Hospital Moscow
- • Bakoulev Center for Cardiovascular Surgery
- • Russian Academy of Medical Sciences
- • Center of Neurology Moscow
- • Instytut Psychiatrii i Neurologii
- • Centrum Zdrowia Dziecka
- • Medical Center Medlife
- • Pediatricka Klinika 2 Lekarske Fakulty
- • Instituto Nacional de Câncer (INCA)
- • Hospital Israelita Albert Einstein
- • Abc Clinica
- • Hospital Alemán
- • Hospital Británico
- • Sociedad Española de Beneficencia
- • Hospital Italiano de Buenos Aires
- • Sanatorio Otamendi
- • Clínica Alemana
- • Hospital Clínico Universidad de Chile
- • Hospital Santiago Oriente Dr.Luis Tisné Brousse
- • Pablo Tobón Uribe
- • Hospital Universitario de San Vicente Fundación
- • Clínica las Américas
- • King Faisal Specialist Hospital & Research Centre
- • Tel Aviv Sourasky Medical Center
- • Clalit Health Services
- • Riyadh Military Hospital
- • Hadassah Medical Organization
- • Baskent Universitesi
- • Adana Hastanesi
- • Gambro Healthcare
- • AIC Kapsowar Hospital
- • Institut Pasteur de Madagascar
- • Neuropsychiatric Hospital Aro Abeokuta
- • Ganzouri Specialized Hospital
- • Netcare Group
- • Diani Beach Hospital