The global Outpatient Rehabilitation Centers market size was estimated at USD 79.15 billion in 2021 and is expected to surpass around USD 149.4 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 8.01% during the forecast period 2022 to 2030.
Key Takeaways:
Growing demand for effective rehabilitation services for disabilities, drug/alcohol addiction, physical injuries, mental health, and others is expected to propel the growth of the industry during the forecast period. The cost-effective treatment compared to the inpatient rehabilitation services is expected to propel the demand for outpatient rehabilitation during the forecast period. The standard inpatient rehabilitation treatment in Canada costs around USD 10,000 to USD 20,000 per month, which is much greater compared to the USD 2,000 to USD 5,000 per month for intensive outpatient programs.
Moreover, rising government initiatives for outpatient rehabilitation centers are expected to boost the growth of the industry during the forecast period. The National Health Service (NHS) in the U.K. offers free outpatient rehabilitation treatments through community-based organizations and local health authorities. These are majorly done at the drop-in day facilities. A rise in the number of neurological disorders, such as Alzheimer’s and dementia, and a rise in
the number of alcohol/drug addiction cases globally are expected to drive the growth of the industry. Companies are adopting various technologies to provide advanced services to patients. For instance, in April 2020, Kolmac Outpatient Recovery Centers launched new virtual services equipped with HIPPA-secure technology for its Intensive Outpatient Program (IOP).
Furthermore, the COVID-19 pandemic adversely affected the industry during the first wave. The market stabilized during the second and third waves. For instance, as per the article published in ScienceDirect, in Japan, the number of patients opting for outpatient rehabilitation services decreased during the first wave of the pandemic. During the second and third waves of the pandemic, the number returned to the pre-pandemic levels, which remain constant throughout the pandemic period despite the emergency declaration in Japan. Moreover, the adoption of telehealth supported the resumption of outpatient rehabilitation activities and an increase in visits to outpatient rehabilitation services.
Report Scope of the Outpatient Rehabilitation Centers Market
Report Coverage |
Details |
Market Size |
USD 149.4 Billion by 2030 |
Growth Rate |
CAGR of 8.01% from 2022 to 2030 |
Largest Market |
North America |
Fastest Growing Market |
Asia Pacific |
Base Year |
2021 |
Forecast Period |
2022 to 2030 |
Segments Covered |
Therapy type, age and Region, |
Companies Mentioned |
Forrest Health; The Mount Sinai Health System; UAB Health System; Nanz medico GmbH & Co. KG; Beijing United Family Rehabilitation Hospital (BJURH); Cambridge Medical & Rehabilitation Center; Lovelace Health System; Kimshealth Trivandrum; Unity Health Toronto; Baylor Scott & White Institute for Rehabilitation; Northern Colorado Rehabilitation Hospital (Ernest Health); Select Medical Corporation |
Therapy Type Insights
Based on therapy type, the industry is further segmented into physical, speech, occupational, behavioral, neurological, cognitive rehabilitation therapies, drug/alcohol addiction treatment, and others. The physical therapy segment dominated the overall industry in 2021 and accounted for the largest share of over 38.10% of the global revenue. The growing number of people participating in fitness programs, along with the growing number of outdoor or sports pursuits, is driving the demand for physical therapy globally. Lower back discomfort, spine, shoulder, and rotator cuff injuries, knee diseases, and other sprains & strains are the most prevalent ailments treated with physical therapy.
Moreover, with efforts to reduce overall patient costs, commercial insurers and government health programs are increasingly turning to low-cost/high-quality outpatient providers. The drug/alcohol addiction treatment segment is expected to witness a significant growth rate during the forecast period. The rising incidences of substance abuse and drug/alcohol addiction are expected to propel the demand for addiction therapy during the forecast period. As per the World Drug Report 2021, by the United Nations Office of Drug and Crime, around 66%, 17%, 42%, 60%, and 80% of people in North America, Latin America, Europe, South Africa, and Asia, respectively are consuming drugs.
Age Insights
Based on age group, the industry is further categorized into infants & toddlers, pediatric, adults, and the elderly. The adult segment led the global industry in 2021 and held the largest share of more than 45.80% of the overall revenue. The high share can be attributed to the higher chances of developing acute back pain and other orthopedic conditions, and an increasing number of accidental injuries among them. As per the World Health Organization statistics, more than 38 million Disability-Adjusted Life Years (DALY) suffered from falls and resulting in a greater number of years lived with disability. The geriatric segment is expected to witness significant growth during the forecast period.
This can be attributed to the rising geriatric population and the growing prevalence of orthopedic and chronic disorders requiring rehabilitation care. As per the World Population Ageing 2020 Highlights, United Nations, there were approximately 727 million individuals aged 65 years and above in 2020, and this number is projected to reach 1.5 billion by 2050 globally. However, the pediatric segment is expected to witness the fastest CAGR during the forecast period. The rising prevalence of accidental injuries among children and incidences of birth-related defects, such as autism spectrum disorders, motor planning disorders, premature birth, and others, are expected to propel the growth of this segment.
Regional Insights
North America dominated the global industry in 2021 and accounted for the largest share of more than 45.15% of the overall revenue. This can be attributed to the increasing number of outpatient rehabilitation centers and favorable reimbursement policies. Outpatient therapies including occupational therapy, speech-language pathology, and physical therapy are covered under Medicare Part B. Around 80% of the Medicare-approved cost of outpatient therapy is covered under original Medicare. The Asia Pacific region is expected to witness the fastest growth rate during the forecast period. This can be attributed to the rising prevalence of neurological disorders associated with disability and need for the outpatient rehabilitation care for their treatment.
For instance, as per the article published in American Heart Journal, in 2019, South-East Asia accounted for 64.4 million Disability-Adjusted Life-Years (DALY) neurological disorders and around 85 million patients in the Western-Pacific region. The more prevalent neurological disorders in the region were Alzheimer’s, migraine, stroke, and dementia. Europe is expected to hold a significant share of the market by 2030 owing to the rising substance /drug abuse cases in the region. According to the European Monitoring Centre for Drugs and Drug Addiction, in 2017, around 973,000 opted for rehabilitation treatment at outpatient specialized treatment centers.
Some of the prominent players in the Outpatient Rehabilitation Centers Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Outpatient Rehabilitation Centers market
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Key Benefits for Stakeholders