Private Healthcare Market Report 2025

The private healthcare market size has grown strongly in recent years. It will grow from $2.56 trillion in 2024 to $5.39 trillion in 2025 at a compound annual growth rate (CAGR) of 5.5%. The growth during the historic period can be attributed to the rising demand for faster access to medical services, increasing prevalence of chronic diseases, growing adoption of telemedicine and digital health platforms, higher private health insurance penetration, and expanding investments from private equity and institutional investors.

The private healthcare market size is expected to see strong growth in the next few years. It will grow to $6.6 trillion in 2029 at a compound annual growth rate (CAGR) of 5.2%. The growth during the forecast period can be attributed to increasing investments from private equity and institutional investors, rising medical tourism, a growing emphasis on personalized and preventive care, expanding urbanization and middle-class population, and greater availability of advanced medical technologies. Key trends in the forecast period include advancements in telemedicine platforms, progress in surgical techniques, integration of artificial intelligence in diagnostics, wider adoption of electronic health records (EHRs), and the use of wearable health devices.

The increasing prevalence of lifestyle-related disorders is expected to drive the growth of the private healthcare market in the coming years. Lifestyle-related disorders are health conditions that primarily develop due to daily habits and choices, including poor diet, lack of physical activity, stress, and harmful addictions. The rise in these disorders is linked to urbanization and sedentary lifestyles, where long working hours and reduced exercise contribute to adverse health outcomes. Private healthcare plays a key role in managing lifestyle-related disorders by offering faster access to specialized doctors and personalized treatment plans, enabling early intervention and improved long-term health outcomes. For example, according to the British Diabetic Association (Diabetes UK), a UK-based patient, healthcare professional, and research charity, around 4.4 million people in the UK were living with a diabetes diagnosis as of 2022-23, with type 1 diabetes accounting for approximately 8%, type 2 diabetes about 90%, and other less common types making up the remaining 2%. Consequently, the rising prevalence of lifestyle-related disorders is driving expansion in the private healthcare market.

Key players in the private healthcare market are focusing on advanced technologies, such as agentic AI, to improve clinical decision-making, automate administrative tasks, and provide personalized patient care while maintaining data privacy and regulatory compliance. Agentic AI is a type of artificial intelligence capable of making independent decisions and taking actions. For instance, in April 2025, OneAdvanced, a UK-based provider of sector-focused SaaS software, launched a private large language model (LLM) designed specifically for healthcare organizations. This private LLM enables secure, role-based AI applications while safeguarding sensitive patient data, offering a fully encrypted, closed AI environment. It features sector-specific intelligence, retrieval-augmented generation, and agentic AI capabilities to enhance decision-making and automation, with customizable workspaces for secure team collaboration while ensuring regulatory compliance.

In December 2024, Reliance Industries Ltd., an India-based private sector company, acquired Karkinos Healthcare for $0.045 billion. Through this acquisition, Reliance aims to strengthen its presence in the healthcare sector, expand its oncology diagnostics and treatment portfolio, and leverage Karkinos Healthcare’s advanced cancer care technologies to provide affordable and accessible solutions across India. Karkinos Healthcare is an India-based provider of private healthcare services.

Major players in the private healthcare market are HCA Healthcare, Fresenius Medical Care, Tenet Healthcare Corporation, Mayo Clinic, Universal Health Services, Ramsay Health Care, Mediclinic International, Bupa, Apollo Hospitals, Manipal Hospitals, Thumbay Hospital, Spire Healthcare Group Plc, One Medical, Fortis Healthcare Limited, BMI Healthcare, Circle Health Group, Saudi German Health, The London Clinic Ltd., Pantai Holdings, Alivia Health, and Aspen Healthcare.

North America was the largest region in the private healthcare market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in private healthcare market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the private healthcare market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the healthcare sector, particularly in the supply of critical medical devices, diagnostic equipment, and pharmaceuticals. Hospitals and healthcare providers are facing higher costs for imported surgical instruments, imaging equipment, and consumables such as syringes and catheters, many of which have limited domestic alternatives. These increased costs are straining healthcare budgets, leading some providers to delay equipment upgrades or pass on expenses to patients. Additionally, tariffs on raw materials and components are disrupting the production of essential drugs and devices, causing supply chain bottlenecks. In response, the industry is diversifying sourcing strategies, boosting local manufacturing where possible, and advocating for tariff exemptions on life-saving medical products.

Private healthcare is a form of medical care organized and financed by entities outside of government control, such as individuals, corporations, or private organizations. Rather than relying primarily on public funding, it is supported through out-of-pocket payments, insurance schemes, or corporate contributions. Operating separately from state-run facilities, this system is often associated with faster access, broader patient options, and a focus on comfort and quality in healthcare delivery.

The main service categories of private healthcare include primary care, specialty care, diagnostic services, surgical procedures, and wellness services. Primary care encompasses basic health services provided by general physicians or family doctors. Consumer preferences may include complementary medicine and personalized medicine, and applications span trauma and orthopedics, general surgery, oncology, maternity and obstetrics-gynecology, cardiology, and urology. Key end-users include international medical tourists, private medical insurance referrals, insured patients, and self-paying individuals.

The private healthcare market research report is one of a series of new reports that provides private healthcare market statistics, including private healthcare industry global market size, regional shares, competitors with a private healthcare market share, detailed private healthcare market segments, market trends and opportunities, and any further data you may need to thrive in the private healthcare industry. This private healthcare market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The private healthcare market includes revenues earned by entities by providing services such as laboratory testing, childcare services, rehabilitation, and mental health services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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