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January 2025
The global medical rehabilitation services market size is calculated at USD 270.58 billion in 2024, grew to USD 287.28 billion in 2025, and is projected to reach around USD 492.4 billion by 2034. The market is expanding at a CAGR of 6.17% between 2025 and 2034. The rising geriatric population, increasing prevalence of acute and chronic disorders, and technological advancements drive the market.
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Rehabilitation services help people return to daily life or improve physical, mental, and/or cognitive abilities and live normally. They are part of the universal health coverage focusing on the promotion of good health, prevention of diseases, treatment, and palliative care. Rehabilitation helps to achieve functional independence of daily activities and participation in work. Some common examples of rehabilitation include speech and language training, physical exercise training, psychological therapies, music or art therapy, nutritional counseling, and occupational therapy. Rehabilitation helps to reduce the impact of illness or injury and slow down the disabling effects of chronic disorders. These services are provided in any setting, including inpatient, outpatient, or homecare.
The geriatric population is more prone to illness and injury and requires advanced care. Hence, the rising geriatric population globally increases the demand for rehabilitation services. The increasing incidence and prevalence of chronic and acute disorders such as stroke, cardiovascular diseases, cancer, and diabetes augment the market. The rising adoption of advanced technologies provides enhanced care to patients. The growing number of surgeries also potentiates market growth.
Artificial intelligence (AI) and machine learning (ML) algorithms have been essential in the healthcare sector, resulting in improved patient outcomes. AI can help diagnose patients' conditions using advanced tools and suggest effective treatment strategies, helping healthcare professionals make decisions. AI can also help to predict injury risk, interpret medical imaging data, and evaluate patient-reported outcomes. It can aid in the assessment of patients and forecasting their performance through advanced tools, augmenting patient care. Integrating AI with home-based virtual rehab can lead to more personalized and adaptive therapy programs. Additionally, AI and ML can play a vital role in training and educating healthcare professionals to provide rehabilitation services.
Community Settings
The major growth factor of the medical rehabilitation services market is the facility that provides rehabilitation services in community settings. The rising geriatric population increases the demand for home healthcare services. The World Health Organization (WHO) estimates that by 2030, 1 in 6 individuals globally will be 60 years or above, and by 2050, the population will double to 2.1 billion. Numerous healthcare professionals provide rehabilitation services in community settings, including at home, school, and workplace. This leads to increased accessibility and affordability for patients towards rehabilitation services. The advancements in rehabilitation tools and services enable healthcare professionals to provide advanced care.
Increasing Number of Sports Injuries
The increasing number of sports injuries leads to increased demand for rehabilitation services. People with sports injuries undergo orthopedic surgeries, which increase the chance of rehabilitation. Sports rehabilitation aids patients in providing physical therapy for musculoskeletal system pain, injury, or illness. The incidence of sports injuries increases with more people involved in sports activities, especially children. In 2023, around 482,886 people were reported to have sports-related injuries. The highest injury rate was reported in 15-24 year olds.
Lack of Trained Professionals
The major challenge faced by the market is the lack of trained professionals specializing in rehabilitation services. With the growing geriatric population, more healthcare professionals are required to provide specialized care to patients. This issue mainly occurs in low- and middle-income countries with greater population density.
Technological Advancements
The future of the medical rehabilitation services market is promising, driven by technological advancements. Numerous researchers have designed and developed wearable devices to assess and manage patient’s conditions. These wearable devices possess sensors to detect and diagnose patient situations. Innovative rehabilitation technology, such as advanced tools, was developed to promote physical activity or exercise, mental activities, or chronic pain. Other technologies include integrating virtual reality (VR), telehealth, mobile health, and robotics in medical rehabilitation. VR enables patients to perform guided exercises in virtual environments, and clinicians can track progress using systems that track motion. VR technology is increasingly being adapted for rehabilitation due to access to cheaper VR headsets.
By therapy, the physical therapy segment held a dominant presence in the medical rehabilitation services market in 2024. The increasing number of surgeries, sports injuries, and musculoskeletal disorders boost the segment’s growth. It is estimated that more than 350 million surgeries are performed annually in the world. Musculoskeletal disorders account for more than 570 million prevalent cases globally. Physical therapy helps people regain their function when suffering from certain types of injury or pain. The different types of physical therapy include exercise, cold and hot treatment, massage, and stretching. The development of advanced tools and techniques for physical therapy also increases their demand.
By therapy, the cognitive therapy segment is anticipated to grow with the highest CAGR in the medical rehabilitation services market during the studied years. Cognitive therapy is provided to patients with stroke or traumatic brain injury (TBI) to improve or restore cognitive functioning. The increasing incidences of stroke, brain injuries, and other neurological disorders promote the segment’s growth. Approximately 26,400 cases of stroke were reported in 2023. This therapy increases the patient’s ability to think and learn. The rising cases of alcoholism and drug abuse and increasing awareness of cognitive therapy augment the segment’s growth.
By setting, the outpatient segment led the global medical rehabilitation services market in 2024. Outpatient rehab services are in high demand owing to an increasing geriatric population, leading to an increased need for outpatient services. Outpatient services are provided to the patient without admitting them to the hospital. They offer numerous benefits, including affordability, maintaining employment, and family support. Technological advancements like digital health, virtual rehab, and virtual reality support outpatient rehab services.
By setting, the inpatient segment is predicted to witness significant growth in the market over the forecast period. The inpatient setting provides more advanced care due to the availability of state-of-the-art tools and equipment. Healthcare professionals have access to patient’s performance and give personalized inputs to improve their functionality. The presence of trained professionals and favorable infrastructure drive the segment’s growth.
By application, the orthopedic segment held the largest share of the medical rehabilitation services market in 2024. The rising incidences of sports injuries and musculoskeletal disorders and the increasing number of orthopedic surgeries potentiate the segment’s growth. Orthopedic rehabilitation helps to restore motion, function, flexibility, and strength. The advancements in technology drive the latest innovations in orthopedic rehab equipment, contributing to the segment’s growth.
By application, the sports-related injuries segment is expected to grow at the fastest rate in the market during the forecast period. The increasing popularity of sports, growing participation in physical activity, and rising incidences of sports incidences fuel the segment’s growth. The main principles behind rehabilitation for sports injuries include rest, ice, compression, and elevation. In 2023, approximately 1.55 million people were employed in the sports sector in the EU, representing 0.76% of total employment.
By end-use, the hospital & clinics segment registered its dominance over the global medical rehabilitation services market in 2024. The segmental growth is attributed to the presence of skilled professionals, favorable reimbursement policies, and suitable capital investments. The increasing number of hospitalizations due to major or minor injuries increases the demand for rehab services at hospitals or clinics.
By end-use, the homecare settings segment is projected to expand rapidly in the market in the coming years. The rising need for rehab services in the older age population and advancements in technology propel the segment’s growth. The growing demand for personalized services improves patient outcomes and provides affordable services. Homecare settings eliminate the need for frequent visits to hospitals or rehab centers.
North America held the major share of the medical rehabilitation services market by 43% in 2024. The increasing number of surgeries, increasing investments and collaborations, and technological advancements drive the market. In the U.S., approximately 7 million orthopedic surgeries are performed annually. Favorable government policies and increasing investments also contribute to the market. The U.S. government has formed the Rehabilitation Services Administration to look after grant programs for people with physical or mental disabilities. The U.S. government’s insurance services, like Medicare and Medicaid, provide suitable reimbursement to patients, increasing accessibility. The Canadian government announced an investment of $200 billion from Budget 2023 to strengthen Canada’s universal public healthcare system.
Asia-Pacific is anticipated to grow at the fastest rate in the medical rehabilitation services market during the forecast period. The rising geriatric population, growing awareness, and favorable government support drive the market. The Chinese government offers discounted loans for building hospital infrastructure and upgrading medical equipment. In 2024, around 310.31 million people aged 60 and above were reported in China. In Japan, one-third of the total population, i.e., 36.25 million people, is 65 years or older. The increasing number of surgeries in Asia-Pacific countries potentiates the demand for rehab services. It is estimated that around 30 million surgical procedures are performed annually in India. Moreover, government agencies increase awareness and promote rehab centers in rural areas.
Vivek Srivastava, Co-founder & CEO of HCAH India, commented in an interview that rehab tech is a rapidly expanding field growing at 15% with specialized rehab players growing at 33%. The growth is driven by improved awareness, decreasing financial dependency of the elderly, increasing insurance coverage, and increasing life expectancy.
By Therapy
By Setting
By Application
By End-Use
By Region
January 2025
December 2024
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