Forecast
Period
|
2024-2028
|
Market
Size (2022)
|
USD
20.86 billion
|
CAGR
(2023-2028)
|
2.48%
|
Fastest
Growing Segment
|
Multi-
Specialty Segment
|
Largest
Market
|
Northern
& Central
|
Market Overview
Saudi Arabia Hospital Market has valued
at USD 20.86 billion in 2022 and is anticipated to witness an impressive growth
in the forecast period with a CAGR of 2.48% through 2028. The Hospital Market refers to the sector
of the healthcare industry focused on the provision of medical services and
care within hospital facilities. Hospitals are key components of the healthcare
system and play a critical role in the diagnosis, treatment, and management of
various medical conditions. Hospitals
are large, specialized healthcare facilities equipped to provide a wide range
of medical services, including emergency care, surgical procedures, diagnostic
testing, inpatient care, and outpatient services. Hospitals employ a diverse workforce of
healthcare professionals, including doctors (physicians and specialists),
nurses, therapists, pharmacists, radiologists, laboratory technicians, and
support staff. Hospitals
provide care for a wide range of patients, from those requiring acute care for
serious illnesses or injuries to those seeking routine check-ups or elective
procedures. Hospitals are
equipped with advanced medical technology and equipment, such as MRI machines,
CT scanners, surgical robots, and laboratory equipment, to facilitate diagnosis
and treatment.
The Saudi government has made
substantial investments in healthcare infrastructure, including the
construction of new hospitals, medical cities, and healthcare facilities, to
meet the growing healthcare needs. The implementation of mandatory health insurance
policies for expatriates and, in some cases, for Saudi citizens, has led to
increased utilization of healthcare services, including hospital care. Saudi
Arabia has been actively promoting itself as a medical tourism destination,
attracting patients from other countries seeking high-quality healthcare
services. The adoption of
digital health solutions, including electronic health records (EHRs) and
telemedicine, has improved healthcare access and delivery, making services more
efficient and convenient. The
increasing demand for specialized healthcare services, such as advanced
treatments and surgeries, has driven the growth of specialized hospitals and
clinics. Investments in
healthcare research and innovation have resulted in advancements in medical
science and technology, which can drive the demand for healthcare services and
improve patient outcomes.
Key Market Drivers
Increasing Health Insurance Mandates
Health insurance mandates ensure that a larger portion of the
population, including expatriates and in some cases, Saudi citizens, has access
to healthcare services. This increased access leads to higher demand for
healthcare facilities, including hospitals. Health insurance provides financial
protection to individuals and families by covering a significant portion of
their healthcare expenses. This encourages people to seek medical care when
needed, contributing to higher hospital utilization. Health insurance often
covers preventive care, such as routine check-ups and vaccinations. People with
insurance are more likely to undergo preventive screenings and consultations,
which can lead to the early detection and treatment of health conditions.
Health insurance assists in managing chronic diseases, which
require ongoing care and hospital services. With insurance coverage,
individuals with chronic conditions are more likely to seek regular follow-up
care in hospitals. Health insurance mandates ensure that individuals have
access to emergency medical services, including emergency room care in
hospitals, without the burden of high out-of-pocket costs. Health insurance
often covers specialized and inpatient care in hospitals. This includes
surgeries, treatments for serious illnesses, and hospital stays. The
availability of insurance for these services encourages people to seek
specialized and inpatient care when necessary.
Health insurance helps mitigate the financial burden of
healthcare costs, which can be substantial, especially for major medical
procedures. This reduction in out-of-pocket costs makes healthcare services,
including hospital care, more affordable and accessible. Health insurance
mandates have encouraged the growth of the private healthcare sector, leading
to an increase in the number of private hospitals and clinics. This, in turn,
expands the overall capacity of the healthcare system. Health insurance mandates
often align with broader government health initiatives to improve the overall
healthcare system. As a result, these mandates are an integral part of
achieving the goals set by the government, such as those outlined in Vision
2030. Health insurance coverage often extends to international patients seeking
medical care in Saudi Arabia. This attracts medical tourists who come to the
country for specialized treatments, contributing to the growth of the Saudi
Arabia Hospital Market. This factor will help in the development of the Saudi Arabia Hospital Market.
Rising Specialized Healthcare Service
Specialized healthcare services are essential for the
diagnosis, treatment, and management of complex and rare medical conditions.
Patients with such conditions often seek care from specialized hospitals and
clinics. Specialized facilities offer advanced treatments and procedures that
are not available in general hospitals. This includes cutting-edge surgeries,
therapies, and interventions, attracting patients seeking the best available
care. The prevalence of chronic diseases, such as cancer, heart disease, and
diabetes, drives the demand for specialized care. These conditions often require
long-term management and access to specialized expertise. Patients with
specific medical needs prefer specialized hospitals and clinics known for
providing high-quality care in their area of expertise. These facilities often
have a track record of success in treating specific conditions.
Specialized healthcare providers invest in state-of-the-art
medical equipment and technology, making them capable of delivering the most
advanced and precise treatments. Specialized healthcare services in Saudi
Arabia attract patients from both within the country and abroad, contributing
to medical tourism. Patients travel to receive specialized care that may not be
available or accessible in their home countries. Specialized hospitals and
clinics often engage in medical research and innovation, driving advancements
in healthcare and attracting patients seeking access to the latest treatments
and clinical trials. Specialized healthcare providers often collaborate with
general hospitals and healthcare networks, offering a continuum of care for
patients with complex medical conditions. This collaboration ensures that
patients receive comprehensive care, from diagnosis to treatment and recovery.
Specialized facilities catering to pediatric and maternity
care provide comprehensive services for children and expectant mothers,
ensuring the well-being of these vulnerable populations. Both the public and
private sectors in Saudi Arabia have invested in specialized healthcare
services, leading to the growth of specialized hospitals, cancer centers,
cardiology clinics, and more. The rising prevalence of conditions like cancer
and cardiovascular diseases has resulted in a growing need for specialized
care, leading to the expansion of specialized healthcare facilities. General
hospitals often refer patients with complex or specialized medical needs to
specialized facilities, increasing the patient flow to these institutions. This
factor will pace up the demand of the Saudi
Arabia Hospital Market.
Growing Research and Innovation
Ongoing research and innovation lead to
the development of advanced medical treatments, procedures, and therapies.
Patients often seek out hospitals that can provide the latest and most
effective treatments for their medical conditions. Hospitals that invest in
innovative medical equipment and technology are better equipped to provide
cutting-edge care. Patients may choose these hospitals for access to the most
advanced diagnostic tools and treatment options. Hospitals involved in medical
research often conduct clinical trials. Patients who are interested in
participating in these trials or accessing experimental treatments may opt for
hospitals with strong research programs. Research and innovation often lead to
the establishment of specialized centers within hospitals, such as cancer
centers, cardiovascular centers, and research units focused on specific medical
conditions. These centers attract patients seeking specialized care.
Hospitals with a reputation for
conducting cutting-edge research and offering innovative treatments can become
medical tourism destinations. Patients from both within Saudi Arabia and from
abroad may choose these hospitals for their advanced services. Hospitals
engaged in research often employ leading experts in various medical fields.
Patients may travel to these hospitals to seek consultations and treatments
from renowned specialists. Hospitals that engage in research often collaborate
with pharmaceutical companies, universities, and other healthcare institutions.
These collaborations can lead to the development of new treatments and
procedures. Research-active hospitals may offer patients access to experimental
therapies and treatments that are not widely available. This can be especially
appealing to individuals with challenging medical conditions.
Research-driven hospitals are more
likely to adopt and implement telemedicine and telehealth solutions, which
provide patients with convenient and remote access to healthcare services. Hospitals
that continuously incorporate research findings into their practice often
achieve better patient outcomes. Patients are more likely to choose hospitals
with a track record of success in treating their specific medical conditions. Academic
hospitals affiliated with medical schools and research institutions often lead
in research and innovation. Patients may seek care at these centers to benefit
from the latest medical advancements. Hospitals involved in research often
provide opportunities for healthcare professionals to engage in ongoing
education and professional development. This can attract skilled medical staff
and enhance the quality of care. This factor will accelerate the demand of the Saudi
Arabia Hospital Market.
Download Free Sample Report
Key Market Challenges
Healthcare Costs
The growing population and increased
healthcare needs have led to greater demand for healthcare services. Meeting
this demand while controlling costs can be challenging. The prevalence of
chronic diseases, such as diabetes and cardiovascular conditions, has increased
healthcare costs. These conditions often require ongoing care and management. Specialized
medical procedures, treatments, and surgeries can be costly, and the demand for
such services has been on the rise. The cost of medications, including advanced
and specialized drugs, can be a significant portion of healthcare expenses. While
the government has invested in expanding healthcare infrastructure, the
construction and maintenance of hospitals and medical facilities require
substantial financial resources. Ensuring that health insurance policies cover
a wide range of healthcare services without causing financial strain on
individuals and families is a complex challenge. The adoption of advanced
medical equipment and technology, while improving care, can also add to
healthcare costs. Attracting and retaining a skilled healthcare workforce can
be costly. High-quality healthcare professionals often demand competitive
salaries.
Infrastructure and
Capacity
There can be significant disparities in
the distribution of healthcare infrastructure across different regions of Saudi
Arabia. Urban areas, particularly Riyadh and Jeddah, have more healthcare
facilities than rural or remote regions, which can lead to uneven access to
healthcare services. Ensuring an adequate number of hospital beds to meet the
needs of the population, especially during emergencies or health crises, is a
challenge. Overcrowding in hospitals can lead to suboptimal patient care. The
demand for specialized healthcare services has grown, leading to a need for
more specialized hospitals and facilities. Ensuring that these facilities are
available throughout the country can be a logistical challenge. Maintaining and
upgrading healthcare infrastructure, including hospital buildings and medical
equipment, is an ongoing financial challenge that requires consistent
investment. Expanding healthcare infrastructure necessitates a skilled
workforce to operate and staff these facilities. Attracting and retaining
qualified healthcare professionals can be a challenge. Efficiently coordinating
the healthcare network, from primary care to specialized hospitals, can be
complex, particularly in terms of patient referrals and information sharing. Having
the necessary infrastructure and capacity to respond effectively to health
emergencies and pandemics, as demonstrated during the COVID-19 pandemic,
requires ongoing attention.
Key Market Trends
Healthcare
Privatization
Saudi Arabia is working to diversify its
economy beyond oil. Privatizing healthcare services is seen to attract private
investment and stimulate economic growth in the healthcare sector. The
government is encouraging private sector participation in healthcare through
public-private partnerships (PPPs) and the privatization of healthcare
facilities and services. This has led to the growth of private hospitals,
clinics, and healthcare providers. Privatization has facilitated the expansion
of healthcare services, including the construction of new private hospitals and
clinics, which has increased healthcare capacity and improved access to
services. The competition between private healthcare providers has led to a
focus on quality improvement, as providers aim to attract and retain patients
by offering high-quality care and services. Private healthcare providers often
introduce innovative technologies and practices to enhance efficiency and the
patient’s experience. This has contributed to the adoption of digital health
solutions and telemedicine. Privatization has attracted international
healthcare providers and investors, leading to the introduction of
international standards and practices in the Saudi healthcare sector. Privatization
and the introduction of high-quality private healthcare facilities have made
Saudi Arabia an attractive destination for medical tourists seeking specialized
treatments.
Segmental Insights
Type Insights
In 2022,
the Saudi Arabia Hospital Market largest
share was held by general hospital segment and is predicted to continue
expanding over the coming years. General hospitals offer a wide range of medical services, including
emergency care, surgery, internal medicine, paediatrics, obstetrics, and other
general specialties. This comprehensive approach to healthcare makes them a
go-to choose for a broad spectrum of medical needs. General hospitals are
equipped to provide acute care and emergency services, which are in high demand
due to accidents, sudden illnesses, and other urgent medical situations. This
positions them as critical healthcare providers. Many general hospitals have
specialized units or departments, such as intensive care units (ICUs), neonatal
ICUs, and surgical suites. This allows them to offer specialized care within a
general hospital setting. General hospitals provide inpatient care and
facilities for patients who require hospitalization. This includes medical and
surgical wards, labor and delivery suites, and other inpatient services. General
hospitals are often strategically located in urban centres and accessible to a
large portion of the population, ensuring convenient access to healthcare
services.
Ownership Insights
In 2022,
the Saudi Arabia Hospital Market
largest share was held by multispeciality segment and is predicted to continue
expanding over the coming years.
Multispecialty hospitals are equipped to
provide a wide range of medical services across various specialties, including
cardiology, orthopedics, neurology, oncology, and more. This comprehensive
approach to healthcare makes them a preferred choice for patients seeking a
one-stop solution for their healthcare needs. Multispecialty hospitals have the
capability to offer specialized care for a broad spectrum of medical
conditions. In Saudi Arabia, there is a growing demand for specialized medical
services, especially for complex and chronic diseases. These hospitals often
invest in advanced medical technology, diagnostic equipment, and facilities,
enabling them to deliver state-of-the-art healthcare services. Patients often
seek out these hospitals for cutting-edge treatments and diagnostic capabilities.
Multispecialty hospitals typically employ a diverse team of highly specialized
physicians and healthcare professionals. This concentration of expertise
attracts patients who require specialized care. Multispecialty hospitals can
provide a wide range of medical services under one roof, reducing the need for
patients to be referred to other facilities for specialized care. This
convenience is a significant advantage for both patients and referring
physicians.
Type of
Services Insights
In 2022,
the Saudi Arabia Hospital Market largest share was held by Out-Patient Services segment
in the forecast period and is predicted to continue expanding over the coming
years.
Saudi
Arabia has been placing increased emphasis on primary healthcare services to
improve the overall health of the population. Outpatient services, which
include primary care clinics, play a vital role in preventive care and early
disease detection. Outpatient services are crucial for preventive medicine and
wellness programs. Regular check-ups, vaccinations, and health education are
often provided through outpatient facilities, helping to maintain the health of
the population. The prevalence of chronic diseases like diabetes and
hypertension in Saudi Arabia has driven the demand for ongoing, outpatient
care. Many patients with chronic conditions require regular follow-up visits to
manage their health effectively. Outpatient services are often more accessible
to the general population, particularly for routine and non-emergency
healthcare needs. Patients can receive care without the need for overnight
stays or hospitalization. Outpatient services are typically less costly than
inpatient hospital care, making them a more cost-effective option for both
patients and the healthcare system. This affordability makes outpatient
services an attractive choice for many.
Download Free Sample Report
Regional Insights
The Northern
& Central region dominates the Saudi Arabia Hospital Market in 2022. The
Northern and Central regions are home to the largest population centers in
Saudi Arabia, including the capital city, Riyadh, in the Central region. These
regions have a higher concentration of residents, which naturally leads to
increased demand for healthcare services, including hospitals. These regions
are also economic hubs with a significant concentration of businesses,
government institutions, and industries. Economic activity often drives the
need for healthcare services, as a larger workforce and urban population
require healthcare infrastructure. The government of Saudi Arabia has invested
heavily in the development of healthcare infrastructure in the Northern and
Central regions. This includes the construction of state-of-the-art hospitals,
medical cities, and healthcare facilities to meet the growing demand for
healthcare services. These regions are more likely to host specialized
healthcare facilities, such as tertiary care hospitals, research centers, and
medical schools. These facilities often draw patients and healthcare
professionals from across the country, reinforcing their dominance in the
healthcare sector.
Recent Developments
- In February 2022, The
Ministry of Health in Saudi Arabia has introduced the Middle East's pioneering
virtual hospital known as the "Seha Virtual Hospital." The
inauguration was attended by Minister of Health Fahd Al-Jalajel and Minister of
Communications and Information Technology Eng. Abdullah Al-Sawaha. What sets
the Seha Virtual Hospital apart is its distinction as the world's largest of
its kind and the first in the Middle East, representing the cutting edge of
virtual healthcare. This virtual hospital is a specialized facility that
leverages the latest innovative technologies to provide highly specialized
services in support of healthcare facilities throughout the Kingdom of Saudi
Arabia. It plays a crucial role in supporting 130 hospitals across the nation
by offering a range of rare specialties and over 30 specialized services
spanning various medical fields and subspecialties. Additionally, it
facilitates the transfer of knowledge to newly graduated doctors, enhancing the
efficiency of medical services. It aims to make its services accessible
throughout Saudi Arabia and offers a platform for receiving requests and
inquiries from various specialized clinics in different hospitals. The
establishment of the Seha Virtual Hospital aligns with the objectives of Saudi
Arabia's Vision 2030, as it represents a key initiative in the transformation
of the healthcare sector.
Key Market Players
- Middle East Healthcare Co.
- King Faisal Specialist Hospital and Research Centre
- National Guard Health Affairs Hospital
- Riyadh Military Hospital
- Royal Commission Hospital
- Abeer Medical Group
- King Fahad Medical City
- King Saud University Medical City
- Dr. Sulaiman Al Habib Medical Group
- Al Mouwasat Hospital
By
Type
|
By
Ownership
|
By Type
of Services
|
By
Bed Capacity
|
By
Region
|
- General
- Specialty
- Multi-
Specialty
|
- General
- Specialty
- Multi-
Specialty
|
- In-Patient
Services
- Out-Patient
Services
|
- Up
to 100 beds
- 100-500
beds
- above
500 beds
|
- Eastern
- Western
- Northern
& Central
- Southern
|
Report Scope:
In this report, the
Saudi Arabia Hospital Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Hospital Market, By Type:
o
General
o
Specialty
o
Multi- Specialty
- Hospital Market, By Ownership:
o
General
o
Specialty
o
Multi- Specialty
·
Hospital Market, By Type of Services:
o
In-Patient Services
o
Out-Patient Services
- Hospital Market, By Bed Capacity:
o
Up to 100 beds
o
100-500 beds
o
above 500 beds
- Hospital
Market, By region:
o
Eastern
o
Western
o
Northern & Central
o
Southern
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Saudi Arabia Hospital Market.
Available Customizations:
Saudi Arabia Hospital
Market report with the given market data, Tech
Sci Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
Saudi Arabia Hospital Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]