Medical Rehabilitation Services Market size is evaluated at USD 230.4 billion in 2024 and is poised to reach USD 490.6 billion by the end of 2037, growing at around 6.5% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of medical rehabilitation services is assessed at USD 245.4 billion. Medical rehabilitation services have significantly increased over the years with several factors driving its growth, including increasingly prevalent chronic diseases, such as stroke, heart disease, and musculoskeletal disorders. These require long-term rehabilitation to regain functionality, particularly among the rising geriatric population. Technological advancements such as robots, artificial intelligence, and wearable devices have also delivered reliable outputs in rehabilitation services enhancing effectiveness.
Furthermore, the availability of telerehabilitation services has facilitated remote patient treatment. In July 2023, WHO stated that rehabilitation services benefit over 2.4 billion people worldwide, accounting for nearly one-third of the total population. Thus, in support, WHO launched the Rehabilitation 2030 Initiative. Owing to such awareness among the masses and the increasing significance of early and sufficient rehabilitation, medical rehabilitation services are being enhanced and improvised globally. In March 2024, Trilife announced the expansion of its services by introducing a Nuero Rehabilitation and Sports Medical Center with 40 beds and an area covering 60,000 sq. ft., with all amenities equipped with advanced technologies to deliver outpatient care facilities.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
6.5% |
Base Year Market Size (2024) |
USD 230.4 billion |
Forecast Year Market Size (2037) |
USD 490.6 billion |
Regional Scope |
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Therapy (Physical, Occupational, Cognitive, Speech)
Physical therapy segment is anticipated to account for more than 37.6% medical rehabilitation services market share by the end of 2037. This is primarily attributed to the rising awareness about the advantages of physical therapies amongst the population. In addition, improved technology, enhanced patient engagement, and accessibility along with an increased emphasis on preventive care and rehabilitation for chronic diseases foster the growth. This results in improving patient outcomes, reducing pain, and facilitating speedy recovery from surgeries and accidents.
Advances in the treatment of modalities, including computer-assisted therapy and customized exercise programs tailored to individual needs, will improve patient outcomes and satisfaction and fuel further demand for physical therapy services. In August 2020, PRN, a privately held company, and MemorialCare, a well-known nonprofit integrated health system entered into a joint venture partnership to operate 17 full-service physical therapy centers that are community-based to render a vast range of services, including sports medicine, occupational therapy, and physical therapy.
Service Type (Outpatient, Inpatient)
The outpatient segment is expected to dominate the medical rehabilitation services market. which include the growing preference for low-cost and convenient care and enhancements in telehealth technologies. Increasing emphasis on preventive and post-acute care also contributes to this growth. Tele-rehabilitation has also grown over the past years making a tremendous stride since the pandemic, as patients are generally in favor of virtual consultations and rehabilitation sessions that can fill out their time allocations free of travel costs.
In addition, joint ventures between technology companies and rehabilitation service operators are arising, bringing several new and innovative digital platforms and applications. These services are aimed at enhancing engagement and adherence to therapy regimens and bid to integrate services into a cohesive package that saves the patient's time. Furthermore, this model has gained popularity owing to the shorter treatment times, rising demand for occupational therapies, and availability of specialized outpatient centers.
End Use (Hospitals, Homecare Settings, Rehabilitation Center)
The hospital segment is poised to dominate the medical rehabilitation services market owing to the prevalent demand for specialized care for post-acute and chronic diseases. Also, hospitals are well-equipped with interdisciplinary teams and cutting-edge technologies that enable them to provide enhanced and efficient rehabilitation treatments. Furthermore, compared to independent rehabilitation facilities or home-based care, hospitals have better infrastructure such as advanced diagnostic facilities, skilled nursing staff, and their capacity to manage complex situations and a higher level of trust.
The growth and development of rehabilitation services in hospital settings are also motivated by the need to achieve quantifiable outcomes, such as increased mobility and functional independence thus fostering the hospital segment growth. For instance, patient satisfaction with hospital services rose from 79.9% in 2018 to 92.6% in 2020, according to national statistics. In May 2024, CARE Hospital expanded its services by introducing the launch of a new Sports Medicine and Rehabilitation Center that is technically advanced in delivering services.
Our in-depth analysis of the global medical rehabilitation services market includes the following segments:
Therapy |
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Service Type |
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Application |
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End use |
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North America Market Statistics
North America in medical rehabilitation services market is anticipated to account for around 40.7% revenue share by 2037, primarily due to a robust economy, advanced technological infrastructure, and high investments in developments. Additionally, it hosts a huge, diversified consumption base and rich purchasing power to drive demand for goods and services. An additional incentive to the growth process is the availability of global leadership in corporations, deep financial markets framework, and favorable regulatory environments. Furthermore, the region also focuses on sustainability and digital transformation, hence placing it well for future expansion across multiple industries.
A strong healthcare infrastructure in Canada, combined with government grants and incentives towards public healthcare services, enhances the growth of rehabilitation services. Overall, increased consciousness about the role of rehabilitation in recovery and long-term management of health increases the growth of the industry. For instance, in June 2023, the Government of Canada and UNDP collaborated to guarantee that public health and recovery centers are appropriately planned and established under the National Strategy for creating Ukraine as a barrier-free environment.
In the U.S. advancements in medical technology such as telemedicine, artificial intelligence, and robots, are continuously enhancing the efficacy and accessibility of rehabilitation services. Investment in rehabilitation for better patient outcomes and fewer readmissions to hospitals is rising, driven by increased emphasis on value-based care and post-acute treatment in the healthcare system. For instance, to help people with physical or mental disabilities find work and lead more independent lives, the Rehabilitation Services Administration (RSA) is in charge of grant programs.
Asia Pacific Market Analysis
The Asia Pacific medical rehabilitation services market has been expanding significantly for several due to governments and healthcare organizations promoting investments in new technology in fields such as robotic-assisted therapy and telerehabilitation, thus increasing the efficacy and accessibility of rehabilitation programs. Moreover, big data analytics and artificial intelligence have also been incorporated into rehabilitation services, enabling the creation of individualized treatment regimens that improve patient outcomes. Furthermore, the easy availability of services due to the growth of community-based rehabilitation programs and outpatient rehabilitation centers is fueling the growth.
China's aging population is projected to become a key contributor to growth since the government aims to focus on enhancing rehabilitation centers owing to the increased incidence of age-related conditions. Moreover, investments made in the healthcare infrastructure and innovation aspects of China also contribute towards accessibility to services. The local government is significantly pushing for healthcare reforms, including the expansion of community-based healthcare services, significantly contributing to the overall medical rehabilitation services market growth in the country.
The emergence of telemedicine and private sector investment in India has contributed to the country's push towards modernizing healthcare, further expanding its market growth. Such commitment to better availability and quality of services remains one of the reinforcing factors for medical rehabilitation services in Asia Pacific. For instance, in January 2023, it was announced that rehabilitation services and technologies will witness a significant boom in India by 2028 achieving a medical rehabilitation services market value of USD 35 billion.
Companies in the medical rehabilitation services market are becoming active in their strategic initiatives to increase their profit pool and seize the increasing demand for rehabilitation care. Firms are expanding capabilities in the integration of technologies, advancement of rehabilitation equipment, and better analytics to deliver improved patient outcomes and easier delivery of services. Many collaborations and partnerships are seen to be emerging with healthcare providers and various research institutions towards the development of evidence-based rehabilitation programs.
Companies are also developing their service portfolios to encompass whole-person care, which includes factors of both physical and mental health. This proactive approach, besides placing them strongly in the market, allows them to play a larger role in improving the caliber of rehabilitation services offered to patients. For instance, in August 2024, Quadria Capital announced to deployment of an estimation of around USD 1 billion towards the Indian healthcare system seeking stakes in improving rehabilitation centers and clinics. Some prominent players in the market are:
Author Credits: Radhika Pawar
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