Global Healthcare Services Market Outlook, 2031

The global healthcare services industry covers the delivery of medical care and related services to patients, including hospital care, physician and clinical services, primary care, outpatient and ambulatory surgery, diagnostic laboratory and imaging services, home healthcare, long-term and post-acute care, mental health and behavioural services, dental services, telehealth, emergency medical services and health insurance and care management. It is the largest component of health spending in almost every country, and global health expenditure is about 10% of world GDP according to the WHO. The industry combines public health systems, such as the UK's National Health Service, Canada's provincial systems and national health insurance programmes in Europe and Asia, with private providers and insurers. Major private companies include UnitedHealth Group, through its Optum health services business; HCA Healthcare; CVS Health, including Aetna and Oak Street Health; Elevance Health; Cigna, including Evernorth; Kaiser Permanente; Tenet Healthcare; Fresenius; Apollo Hospitals; IHH Healthcare; Ramsay Health Care; Quest Diagnostics and Labcorp in diagnostics; DaVita in dialysis; Amedisys and Enhabit in home health; and Amazon's One Medical. Hospitals account for the largest share of spending, while physician services, outpatient care, home care and digital health are growing faster as care moves out of hospitals.

The pandemic placed extraordinary pressure on healthcare services, overwhelming hospitals and intensive care units, delaying elective surgery and routine care, and accelerating telehealth, which grew from a small share of visits to a major channel almost overnight. After 2021, demand for delayed procedures rebounded, but providers faced staff shortages, burnout, wage inflation and higher supply costs that squeezed margins. The industry has since been reshaped by consolidation, vertical integration and policy change. Insurers and pharmacy companies bought primary care and home health providers, including Amazon's acquisition of One Medical in 2023 and CVS's purchase of Oak Street Health, while UnitedHealth's Optum became one of the largest employers of physicians in the United States. The February 2024 ransomware attack on UnitedHealth's Change Healthcare disrupted payments and claims across the US health system and exposed data of about 190 million people. UnitedHealth faced further turmoil in 2025, including rising medical costs, a Department of Justice investigation into its Medicare Advantage practices and the replacement of its chief executive in May 2025. In July 2025, US legislation known as the One Big Beautiful Bill Act introduced large reductions in future federal Medicaid spending and new work requirements, while enhanced subsidies for Affordable Care Act marketplace plans expired at the end of 2025, raising premiums and coverage concerns. Elsewhere, the UK announced the abolition of NHS England in March 2025 to reduce bureaucracy, and many countries continue to struggle with waiting lists and workforce shortages.

Market Dynamics Market Drivers • Ageing Populations and Chronic DiseaseThe number of people aged over 65 is growing rapidly in most regions, and older adults use far more healthcare than younger people. Chronic diseases, including heart disease, diabetes, cancer, chronic kidney disease, dementia and obesity, account for most health spending and require ongoing care across hospitals, clinics, home care and long-term care. These trends ensure steady growth in demand for healthcare services worldwide.
• Expanding Coverage and Rising Health Spending in Emerging MarketsGovernments in China, India, Indonesia, Brazil, Saudi Arabia and other emerging markets are expanding health insurance coverage and investing in hospitals and primary care. India's Ayushman Bharat programme provides hospital coverage to hundreds of millions of people, and Saudi Arabia's Vision 2030 includes large healthcare investments. Rising incomes increase demand for private healthcare, supporting growth of hospital chains and diagnostic companies.

Market Challenges • Workforce Shortages and Cost PressuresHealthcare systems face shortages of nurses, doctors and other staff, with the WHO projecting a global shortfall of about 11 million health workers by 2030. Burnout, strikes, wage increases and reliance on expensive agency staff raise costs. Providers also face higher costs for supplies, drugs and technology, while payment rates from governments and insurers often rise more slowly, squeezing margins, especially for rural and safety-net providers.
• Policy Changes and Reimbursement UncertaintyHealthcare services depend heavily on government payment and regulation. In the United States, reductions in Medicaid funding, the expiry of enhanced ACA subsidies, changes to Medicare Advantage payments and site-neutral payment proposals could reduce revenue for providers and increase uninsured patients. In Europe and elsewhere, budget constraints limit investment, and waiting lists remain long. Cybersecurity threats and regulatory scrutiny of consolidation add further risks.

Market Trends • Shift of Care to Outpatient, Home and Virtual SettingsCare is moving from hospitals to lower-cost settings, including ambulatory surgery centres, outpatient clinics, urgent care, home health and hospital-at-home programmes, supported by advances in technology and payment incentives. Telehealth has settled at a lower level than the pandemic peak but remains an important channel for mental health, follow-up visits and chronic disease management. Remote patient monitoring and digital tools allow patients to be managed at home.
• Artificial Intelligence and Digital TransformationHealthcare providers are adopting AI tools for clinical documentation, including ambient scribes that record and summarise consultations, as well as for imaging analysis, scheduling, revenue cycle management and prior authorisation. Electronic health record vendors such as Epic and Oracle Health are embedding AI into their systems. Insurers use AI for claims and care management, while regulators examine its use in coverage decisions. Digital transformation aims to reduce administrative costs and staff burden.



Segment Analysis Hospital services account for the largest share of healthcare services spending, while outpatient, home and long-term care are growing faster as care shifts out of hospitals. Hospital services, including inpatient care, emergency care, surgery, intensive care and many outpatient services provided by hospitals, account for the largest share of healthcare services spending in most countries. Physician and clinical services, including primary care, specialist consultations and services delivered by physician groups, form the second largest category, and physician employment by hospitals, insurers and private equity-backed groups has increased. Outpatient and ambulatory services, including ambulatory surgery centres, imaging centres, urgent care centres and outpatient clinics, have grown rapidly because they are cheaper and more convenient than hospitals. Diagnostic services, including clinical laboratories such as Quest Diagnostics, Labcorp, Synlab and Dr Lal PathLabs, and imaging services, support diagnosis and monitoring. Home healthcare, including skilled nursing at home, home infusion, personal care and hospice, is expanding with ageing populations. Long-term and post-acute care, including nursing homes, assisted living and rehabilitation facilities, serves older and disabled people. Mental health and behavioural services have grown strongly since the pandemic. Dental services, dialysis services, emergency medical services and telehealth form additional segments.

Public providers deliver the majority of healthcare services in many countries, while private for-profit and non-profit providers account for large shares in the United States, India and several other markets. Public healthcare providers, including government hospitals, national health service facilities and public clinics, deliver most healthcare services in countries such as the UK, Canada, the Nordic countries, China and many low- and middle-income countries. They are funded mainly through taxes or social insurance and serve as providers of last resort. Private non-profit providers, including charitable and religious hospital systems, are important in the United States, where they operate most hospitals, and in parts of Europe. Private for-profit providers include hospital chains such as HCA Healthcare, Tenet, Community Health Systems, Fresenius Helios, Ramsay Health Care, Apollo Hospitals, Fortis, Max Healthcare, IHH Healthcare and Bumrungrad; physician groups; ambulatory surgery centre operators; diagnostic chains; home health companies; and dialysis providers. Private equity firms have invested heavily in physician practices, hospitals, nursing homes and other services, attracting scrutiny after high-profile failures such as Steward Health Care's bankruptcy in 2024. Insurers and pharmacy companies have become providers through vertical integration, including Optum, CVS's Oak Street Health and Aetna, and Humana's CenterWell. Technology companies such as Amazon have entered primary care.

Government and public insurance programmes fund the largest share of healthcare services worldwide, while private insurance and out-of-pocket payments are important in the United States and emerging markets. Government and public funding, including national health services, social health insurance and public programmes such as Medicare and Medicaid in the United States, pays for the largest share of healthcare services globally. In the United States, Medicare covers people aged 65 and over and some disabled people, while Medicaid covers low-income people, and changes to these programmes under the One Big Beautiful Bill Act and Medicare Advantage payment rules strongly affect providers. Private health insurance, including employer-sponsored insurance, individual plans and supplementary insurance, is the main source of funding for working-age Americans and an important supplementary source in Europe, Australia and parts of Asia. Medicare Advantage, in which private insurers manage Medicare benefits, covers more than half of eligible Americans and has become a major business for UnitedHealth, Humana, CVS's Aetna and Elevance. Out-of-pocket payments, where patients pay directly, account for a large share of spending in India, other parts of South Asia, Africa and some Latin American countries, creating financial hardship. Value-based payment models, including accountable care organisations and capitated arrangements, reward providers for outcomes and cost control rather than volume.

Chronic disease management, acute care and preventive and primary care are the core service categories, while mental health and ageing-related services are among the fastest-growing areas. Acute care, including emergency treatment, surgery, trauma care and treatment of serious infections, is provided mainly by hospitals and accounts for a large share of spending. Chronic disease management, covering diabetes, heart disease, cancer, kidney disease, respiratory disease and obesity, involves ongoing physician visits, tests, medicines and coordination across settings, and it accounts for most healthcare costs in developed countries. Preventive and primary care, including check-ups, vaccinations, screening and management of common conditions, is the foundation of health systems, and many countries are investing in primary care to reduce hospital use. Maternal and child health services are critical in emerging markets. Mental health and substance use services have grown rapidly, driven by rising demand after the pandemic and greater acceptance of treatment, but they face shortages of clinicians. Ageing-related services, including dementia care, rehabilitation, home care, long-term care and palliative care, are growing with older populations. Cancer care has become increasingly complex and expensive. Elective and cosmetic procedures, dental care and fertility services are important private markets. Public health services, such as disease surveillance and vaccination programmes, form a separate government-funded area.

Regional Analysis North America leads the healthcare services market because the United States spends far more on healthcare per person than any other country, with a large private provider and insurance sector, while Asia-Pacific is the fastest-growing region as coverage and incomes rise. North America, led by the United States, accounts for the largest share of global healthcare services spending. The United States spent about USD 5 trillion on healthcare in 2024, around 18% of GDP, far above other countries. Its system combines private insurers, government programmes and a mix of non-profit and for-profit providers, and it has seen rapid consolidation and vertical integration, with UnitedHealth's Optum, CVS Health and others combining insurance, care delivery and pharmacy. The Change Healthcare cyberattack in 2024, UnitedHealth's leadership change in 2025, Medicaid spending reductions enacted in July 2025 and the expiry of enhanced ACA subsidies at the end of 2025 created significant uncertainty for providers. Canada has a publicly funded system facing long waiting times. Europe is the second largest region, with universal health systems funded by taxes or social insurance, and countries such as Germany, France, the UK, Italy and Spain face ageing populations, workforce shortages and waiting lists, while the UK announced the abolition of NHS England in 2025. Asia-Pacific is the fastest-growing region, driven by China's large public hospital system and expanding private sector, India's rapidly growing private hospital chains and Ayushman Bharat insurance programme, Japan's ageing population and large healthcare spending, and growth in Southeast Asia. Latin America has mixed public and private systems, led by Brazil and Mexico, and the Middle East, especially Saudi Arabia and the UAE, is investing heavily in healthcare infrastructure and privatisation. Africa faces the largest gaps in healthcare access and workforce.

Key Developments January 2026: Enhanced premium tax credits for Affordable Care Act marketplace plans expired at the end of 2025, increasing premiums for many enrollees and raising concerns about coverage losses.
July 2025: US legislation introduced Medicaid work requirements, limits on provider taxes and other changes expected to reduce federal Medicaid spending significantly over the next decade.
May 2025: UnitedHealth Group's chief executive Andrew Witty stepped down and former CEO Stephen Hemsley returned, as the company faced rising medical costs and regulatory scrutiny.
March 2025: The UK government announced plans to abolish NHS England and bring its functions into the Department of Health and Social Care to reduce duplication and administrative costs.
February 2024: A ransomware attack on UnitedHealth's Change Healthcare disrupted claims processing and payments across the US health system and exposed data of about 190 million people.
February 2023: Amazon completed its USD 3.9 billion acquisition of One Medical, expanding its presence in primary care and healthcare services.

Considered in this report
• Historic Year: 2020
• Base Year: 2025
• Estimated Year: 2026
• Forecast Year: 2031

Aspects covered in this report
• Global Healthcare Services Market with its value and forecast along with its segments
• Various drivers and challenges
• Ongoing trends and developments
• Top profiled companies
• Strategic recommendation

By Service Type
• Hospital Services
• Physician and Clinical Services
• Outpatient and Ambulatory Services
• Diagnostic Services
• Home Healthcare
• Long-Term and Post-Acute Care
• Mental Health Services

By Provider Ownership
• Public Providers
• Private Non-Profit Providers
• Private For-Profit Providers

By Payer
• Government and Public Insurance
• Private Health Insurance
• Out-of-Pocket Payments

By Care Category
• Acute Care
• Chronic Disease Management
• Preventive and Primary Care
• Mental Health and Behavioural Care
• Ageing-Related Care