Global Rehabilitation Services Market Outlook, 2031

The global rehabilitation services industry covers healthcare services that help people recover, maintain or improve physical, cognitive and communication function after injury, illness, surgery or disability. Services include physical therapy or physiotherapy, occupational therapy, speech and language therapy, cardiac and pulmonary rehabilitation, neurological rehabilitation after stroke, brain injury or spinal cord injury, orthopaedic and sports rehabilitation, paediatric developmental therapy, and vocational and pain rehabilitation. Care is delivered in inpatient rehabilitation hospitals and units, skilled nursing facilities, outpatient clinics, patients' homes, schools and workplaces, and increasingly through telerehabilitation. The WHO estimates that about 2.4 billion people worldwide have conditions that could benefit from rehabilitation, a number rising with ageing populations and chronic disease. Major providers include Encompass Health, the largest US operator of inpatient rehabilitation hospitals; Select Medical, which runs critical illness recovery hospitals, rehabilitation hospitals and outpatient therapy clinics; ATI Physical Therapy; US Physical Therapy; Upstream Rehabilitation; Ivy Rehab; Concentra, spun off from Select Medical in 2024, in occupational health; Kindred and ScionHealth; home health companies such as Enhabit and Amedisys, now part of UnitedHealth's Optum; and in other regions, operators such as Median Kliniken in Germany, Ramsay Health Care and national health service rehabilitation units. Equipment and technology suppliers include Ekso Bionics, ReWalk, Hocoma within DIH, Hinge Health and Sword Health.

Rehabilitation gained new attention during the pandemic, both because elective surgery and outpatient therapy were disrupted and because many COVID-19 survivors, particularly those who spent time in intensive care or developed long COVID, needed extensive rehabilitation. Demand for outpatient physical therapy recovered quickly after 2020, but providers have struggled with therapist shortages, wage inflation and declining reimbursement. In the United States, Medicare physician fee schedule cuts reduced payments for physical and occupational therapy in several years, and some outpatient chains, including ATI Physical Therapy, faced financial difficulties. Inpatient rehabilitation hospitals have continued to grow, with Encompass Health opening several new hospitals a year, while the Centers for Medicare and Medicaid Services began a review choice demonstration for inpatient rehabilitation facilities in 2023 to reduce improper payments. Home-based rehabilitation has expanded as health systems and insurers seek lower-cost settings, and UnitedHealth completed its acquisition of Amedisys in August 2025 after settling with the Department of Justice. Digital musculoskeletal care companies, such as Hinge Health, which listed on the New York Stock Exchange in May 2025, and Sword Health, provide app-based exercise therapy with remote physical therapists to employers and insurers. Globally, the World Health Assembly adopted its first resolution on strengthening rehabilitation in health systems in May 2023, recognising large unmet need in low- and middle-income countries.

Market Dynamics Market Drivers • Ageing Populations and Chronic ConditionsOlder adults experience more falls, fractures, joint replacements, strokes, heart disease and chronic lung disease, all of which require rehabilitation. The number of people aged over 65 is growing rapidly, and more people are living with disabilities and chronic conditions. Stroke is a leading cause of long-term disability, and survivors often need months of therapy, supporting demand for inpatient, outpatient and home rehabilitation.
• Growth in Surgery, Sports Injuries and Musculoskeletal DisordersRising numbers of joint replacements, spinal surgeries and sports-related procedures create demand for post-operative physical therapy. Musculoskeletal disorders, including back and neck pain, are among the leading causes of disability worldwide, and employers and insurers seek to manage them through physical therapy rather than surgery or opioids. Interest in active lifestyles and sports increases demand for sports rehabilitation and injury prevention.

Market Challenges • Therapist Shortages and Rising Labour CostsRehabilitation depends on skilled physical therapists, occupational therapists, speech therapists and assistants, and many countries face shortages, particularly in rural areas and long-term care. Wage increases and competition for staff have raised costs for providers, while high student debt and burnout discourage some therapists from staying in the profession. Shortages limit capacity and lead to long waiting times for therapy.
• Reimbursement Pressure and Administrative BurdenPayment rates for outpatient therapy have been cut or held flat in several markets, including US Medicare payments for physical therapy over several years, while insurers limit the number of covered visits and require prior authorisation. Inpatient rehabilitation facilities face strict admission criteria and audits. Low reimbursement makes it difficult for smaller clinics to survive and encourages consolidation.

Market Trends • Home-Based and Digital RehabilitationRehabilitation is moving into patients' homes through home health services, hospital-at-home programmes and telerehabilitation, reducing costs and improving convenience. Digital musculoskeletal programmes from companies such as Hinge Health and Sword Health use sensors, apps and remote therapists to deliver exercise therapy at scale, especially through employers. Virtual reality and gamified exercises are used to improve engagement in neurological and paediatric rehabilitation.
• Robotics, Wearables and AI in RehabilitationRobotic devices, including exoskeletons, gait trainers and upper-limb robots, help patients with stroke and spinal cord injury practise movements intensively. Wearable sensors track movement and progress, and AI tools help personalise exercise programmes and predict recovery. Neuromodulation technologies, such as vagus nerve stimulation paired with rehabilitation for stroke, have gained regulatory approval and offer new treatment options.



Segment Analysis Physical therapy accounts for the largest share of rehabilitation services, while occupational therapy, speech therapy and cardiopulmonary rehabilitation form significant specialised segments. Physical therapy or physiotherapy is the largest segment, treating musculoskeletal injuries, back and neck pain, post-surgical recovery, sports injuries, neurological conditions and mobility problems in older adults, and it is delivered in outpatient clinics, hospitals, homes and nursing facilities. Occupational therapy helps people regain the skills needed for daily living and work after injury, illness or disability, and it is important in stroke, hand injuries, mental health and paediatric development. Speech and language therapy treats communication and swallowing disorders following stroke, brain injury, neurological diseases or developmental conditions, and it serves both adults and children. Cardiac rehabilitation, including supervised exercise and education after heart attacks, heart surgery and heart failure, reduces future cardiac events but remains underused. Pulmonary rehabilitation helps people with chronic obstructive pulmonary disease and other lung diseases. Neurological rehabilitation for stroke, traumatic brain injury, spinal cord injury, multiple sclerosis and Parkinson's disease often combines several therapies. Paediatric rehabilitation addresses developmental delays, cerebral palsy and autism. Vocational rehabilitation helps people return to work, and pain rehabilitation programmes provide alternatives to opioids.

Outpatient settings account for the largest share of rehabilitation visits, while inpatient rehabilitation facilities provide intensive care for complex cases and home-based rehabilitation is the fastest-growing setting. Outpatient rehabilitation clinics, including physical therapy chains, hospital outpatient departments and independent practices, provide the largest number of therapy visits, treating orthopaedic, sports and chronic pain conditions. In the United States, chains such as ATI Physical Therapy, US Physical Therapy, Select Medical's outpatient division, Upstream and Ivy Rehab operate thousands of clinics. Inpatient rehabilitation facilities, including freestanding rehabilitation hospitals and hospital units, provide intensive therapy of at least three hours a day for patients recovering from stroke, spinal cord injury, brain injury, major trauma and complex orthopaedic conditions, with Encompass Health the largest operator in the United States. Skilled nursing facilities provide less intensive rehabilitation for older patients after hospital stays. Long-term acute care hospitals care for patients with complex medical needs requiring prolonged recovery. Home-based rehabilitation, delivered by home health agencies and outpatient therapists visiting patients' homes, is growing as payers seek lower-cost care and patients prefer to recover at home. Telerehabilitation and digital programmes deliver therapy remotely. Schools provide therapy for children with disabilities, and workplace programmes offer occupational rehabilitation.

Orthopaedic and musculoskeletal conditions account for the largest share of rehabilitation demand, while neurological conditions generate the most intensive and costly care. Orthopaedic and musculoskeletal conditions, including back and neck pain, joint replacements, fractures, arthritis, sports injuries and repetitive strain injuries, account for the largest share of rehabilitation visits, particularly in outpatient physical therapy. Musculoskeletal disorders are among the leading causes of disability worldwide and a major cost for employers. Neurological conditions, including stroke, traumatic brain injury, spinal cord injury, multiple sclerosis, Parkinson's disease and cerebral palsy, often require long and intensive rehabilitation across inpatient, outpatient and home settings, and stroke is the leading diagnosis in inpatient rehabilitation facilities. Cardiovascular and pulmonary conditions, including heart attacks, heart surgery, heart failure and COPD, are treated in cardiac and pulmonary rehabilitation programmes. Cancer rehabilitation helps survivors recover function after surgery, chemotherapy and radiation. Paediatric developmental conditions, including autism, developmental delay and genetic disorders, require therapy through childhood. Post-intensive care syndrome and long COVID created new rehabilitation needs after the pandemic. Amputations, burns, chronic pain and age-related frailty form additional categories.

Government programmes and private insurance fund most rehabilitation services in developed markets, while out-of-pocket payments are important for outpatient therapy and in emerging markets. Government programmes, including Medicare and Medicaid in the United States and national health systems and social insurance in Europe, Canada, Japan and Australia, pay for a large share of rehabilitation, particularly for older adults and inpatient and post-acute care. Medicare is the main payer for US inpatient rehabilitation facilities and home health, and its payment rules strongly influence providers. Private health insurance covers outpatient therapy for working-age adults, often with limits on the number of visits and requirements for prior authorisation. Workers' compensation insurance pays for rehabilitation after workplace injuries, and auto insurance covers rehabilitation after traffic accidents in many countries. Employers increasingly fund digital musculoskeletal programmes to reduce costs from back pain and injuries. Out-of-pocket payments are significant for outpatient physical therapy, especially where deductibles are high, and for private physiotherapy in countries such as the UK, Australia and India, where many patients pay directly to avoid waiting lists. Military and veterans' programmes fund rehabilitation for service members. Charities and non-governmental organisations provide rehabilitation in low-income countries.

Regional Analysis North America leads the rehabilitation services market because of high spending on physical therapy, inpatient rehabilitation facilities and post-acute care, while Asia-Pacific is the fastest-growing region driven by rapidly ageing populations. North America, led by the United States, accounts for the largest share of rehabilitation services spending. The United States has a large outpatient physical therapy industry, about 1,200 inpatient rehabilitation facilities, extensive skilled nursing and home health sectors, and major operators such as Encompass Health, Select Medical and ATI Physical Therapy. Medicare payment policy, including physician fee schedule updates for therapy services, the inpatient rehabilitation facility review choice demonstration and home health payment rules, shapes the market, and UnitedHealth's acquisition of Amedisys in 2025 extended insurer ownership into home-based care. Digital musculoskeletal companies such as Hinge Health, which went public in 2025, and Sword Health are expanding through employers. Canada provides rehabilitation through provincial health systems with private physiotherapy widely used. Europe is the second largest region, with Germany having an extensive network of rehabilitation clinics funded by pension and health insurance, and strong rehabilitation traditions in the Nordic countries, the Netherlands, Switzerland and Austria, while the UK's NHS faces long waiting times for physiotherapy. Asia-Pacific is the fastest-growing region, as Japan, China and South Korea have rapidly ageing populations, and Japan's long-term care insurance funds rehabilitation for older people. China is expanding rehabilitation hospitals and departments, and India has a growing private physiotherapy sector but large unmet need. Latin America, the Middle East and Africa have significant gaps in rehabilitation services, which the WHO's Rehabilitation 2030 initiative and 2023 World Health Assembly resolution aim to address.

Key Developments November 2025: CMS finalised its 2026 physician fee schedule, which sets payments for outpatient physical, occupational and speech therapy, including a temporary increase and an efficiency adjustment affecting many services.
August 2025: UnitedHealth's Optum completed its acquisition of home health and hospice provider Amedisys after agreeing to divest some locations to resolve a Justice Department antitrust lawsuit.
May 2025: Digital musculoskeletal care company Hinge Health completed its initial public offering, highlighting the growth of app-based physical therapy.
November 2024: Select Medical completed the spin-off of its occupational health business Concentra, following Concentra's initial public offering in July 2024.
August 2023: CMS launched a review choice demonstration for inpatient rehabilitation facilities, starting in Alabama, requiring pre-claim or post-payment review to reduce improper payments.
May 2023: WHO member states adopted a resolution on strengthening rehabilitation in health systems, calling for rehabilitation to be integrated into universal health coverage.

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

Aspects covered in this report
• Global Rehabilitation 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
• Physical Therapy
• Occupational Therapy
• Speech and Language Therapy
• Cardiac and Pulmonary Rehabilitation
• Neurological Rehabilitation
• Paediatric Rehabilitation

By Setting
• Outpatient Clinics
• Inpatient Rehabilitation Facilities
• Skilled Nursing Facilities
• Home-Based Rehabilitation
• Telerehabilitation

By Condition
• Orthopaedic and Musculoskeletal Conditions
• Neurological Conditions
• Cardiovascular and Pulmonary Conditions
• Cancer Rehabilitation
• Paediatric Developmental Conditions

By Payer
• Government Programmes
• Private Insurance
• Workers' Compensation and Other Insurance
• Out-of-Pocket Payments