Micro Hospitals Market size is expected to reach USD 709 Billion by the end of 2036, growing at a CAGR of 9% during the forecast period, i.e., 2024- 2036. In the year 2023, the industry size of the micro hospitals was USD 252 Billion and the reason behind this growth is due to the growing number of patients that are suffering from life-associated chronic diseases, along with the increase in the aging population with high usage of smartphones and internet. According to the World Health Organization, (WHO), the population aged 60 years and more was 1 billion in 2019, and this is expected to cross 2.1 billion by 2050.
Moreover, the increasing prevalence of various chronic and infectious diseases, and the benefits of virtual healthcare, such as saving time and money through offered discounts, prevention from getting infections at hospitals or clinics, and the option for a second opinion simultaneously, are expected to influence the micro hospitals market growth. According to the World Health Organization (WHO), Healthcare-associated infections (HAIs) affect 5 to 10% of patients in developed countries.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 9% |
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Base Year Market Size (2023) |
~ USD 252 Billion |
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Forecast Year Market Size (2036) |
~ USD 709 Billion |
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Regional Scope |
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Location (Tier 1 cities, tier 2 cities, tier 3 cities)
The tier-1 cities segment is estimated to gain a robust market share of 42% in the coming years owing to the presence of a dense population base, which creates a large customer pool for healthcare services. According to a report, more than 50% of the global population lives in urban areas, and this data might increase 1.5 times and cross the 6 billion population by 2045. This leads to increased competition, as various healthcare players compete for a large and lucrative market. The competition drives the need for specialized and more effective services at a competitive price, which further fuels the growth of micro-hospitals.
End-user (International tourists, corporates, individuals)
The International tourist segment is set to garner a notable share shortly and is likely to remain the second largest segment in the end-user segment of the micro hospitals market as the tourists from foreign countries, who are unfamiliar with the local language and the country customs, are more likely to seek the need for specialized medical services during their stay in that city. This creates a high demand for micro-hospitals that provide targeted, efficient, and cost-effective services for international tourists.
Additionally, many Tier-1 cities have large numbers of international tourists, which provide a significantly higher customer base and a profitable market for the micro-hospital industry. The presence of international tourists also creates international awareness and appeal, which can also help to expand the micro hospitals market
Facilities (Physical, therapy, primary care, rotating specialized, surgery centers, ultrasound)
The physical segment in the micro hospitals market is estimated to hold a noteworthy share as they take up comparatively less space and also require comparatively lower costs than traditional hospitals. This allows for the operation of more micro-hospitals, which expands access to the healthcare industry along with a limited resource. Furthermore, it also reduces the investments that are needed for setting up a hospital, which creates a lower barrier to entry and leads to increased competition, which drives the micro hospitals market
Our in-depth analysis of the global market includes the following segments:
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Location |
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End-users |
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Facilities |
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North American Market Forecast
The micro hospitals market in North America is estimated to have the largest share of approximately 41% in 2023, driven by the growing governmental investments in this market. According to a report, the total investment in healthcare was worth 57 billion USD in 2021, indicating a YoY increase of about 137%. Moreover, with the increase in research and development for producing more efficient and reliable healthcare and healthcare delivery platforms, these demands are expected to fuel the demand for the micro-hospitals market in the region.
APAC Market Statistics
The Asia Pacific micro hospitals market is estimated to be the second largest, during the forecast timeframe led by an increase in the adoption of several technologically advanced healthcare models, along with the ever-expanding geographical reach of the companies in this industry as this causes a surge in the number of micro hospitals healthcare start-ups along with the growing demand in service launches. For instance, according to the report by the US Department of Health & Human Services (HHS) in February 2022, HHS awarded around USD 55 million to increase virtual healthcare access and quality through community healthcare centers.
Author Credits: Radhika Gupta, Shivam Bhutani
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