Hospital Services Market Size to Hit USD 16.45 Trillion by 2027

The global hospital services market size was reached at USD 9.58 trillion in 2020 and is predicted to hit over USD 16.45 trillion by 2027, growing at a CAGR of 8.2% between 2021 and 2027.

Rising incidences of cardiovascular diseases, increasing prevalence of cancer, and commercialization of new-generation stents are expected to fuel the global market growth. However, the COVID-19 pandemic has put tremendous pressure on hospital services catering only to emergency services.

Nonetheless, digital technology is becoming an integral part of the healthcare sector and is expected to revolutionize the practice of medicine in the near future.Several software applications are being introduced to increase the ease of access to hospital services such as doctor appointments, patient health history, etc. Interactive patient engagement solution is one such innovation that is being used across hospitals and clinics for inpatient and outpatient services.

The prolonged effect of the coronavirus resulting in complete lockdown and/or restricted movement across several countries is expected to provide an impetus to innovative digital technologies for patients as well as hospitals. The easy access of apps on mobile phones is expected to increase the rate of acceptance among businesses and consumers alike, in the near future.

Of the different hospital types, public/community hospitals accounted for the largest market share in 2020. However, the segment is expected to witness the slowest growth during the forecast period due to the limited services available in these systems. Furthermore, more patients are opting for specialized and superspecialized services available in private hospitals. Thus, the private hospital segment is anticipated to witness the fastest growth during the forecast period.

As of 2020, inpatient service was the highest revenue-generating segment accounting for nearly 60% of the global hospital services market share. However, the outpatient services segment is expected to witness the fastest growth on account of more affordable services.

Cardiovascular, acute care, cancer care, diagnostics & imaging, neurorehabilitation & psychiatry, and gynecology are the major service areas of hospitals. Of these, cardiovascular care accounted for the largest portion of the market in 2020. Over the forecast period, the demand for neurorehabilitation & psychiatry services is expected to witness substantially due to rising patient awareness regarding mental well-being as well as favorable reimbursement scenarios. 

In 2020, North America accounted for the largest share of the global market, closely followed by Europe and Asia Pacific. However, MEA will witness the fastest growth on account of heavy investments by governments in their healthcare sector. The Asia Pacific is expected to witness the second-highest growth due to the presence of several upcoming economies focusing on providing the best possible healthcare access to their population. 

The global hospital services market is highly fragmented due to the presence of several large to small scale hospitals and clinics with a global as well as regional focus.

Between 2018 and the first quarter of 2021, companies have been focusing on expansions & investments through opening new facilities or extending current capacity. Although revenues of several companies have been impacted due to COVID-19, these companies have focused on increasing their sales through the expansion of capacities. For instance, in March 2020, neonatal intensive care unit opened at Ascension Sacred Heart Emerald Coast.

Besides expansions & investments, companies have also been focusing on partnerships, collaborations & agreements with technology vendors or other healthcare firms.

Due to the extension of the COVID-19 pandemic into 2021, several hospitals have pushed ahead or scaled back non-emergency care, resulting in financial consequences for the hospitals. This has resulted in a significant number of divestments in this market space over the last few years. Other than the strategies mentioned above, hospital service-providing firms have also been focusing on acquisition and product/service launches.

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