Hospital Outsourcing Market Size to Surpass US$ 685 Bn by 2030

New York, Oct. 07, 2021 (GLOBE NEWSWIRE) — New York, Oct 07, 2021 (GLOBE NEWSWIRE) – According to Precedence Research, the hospital outsourcing market size was reached at US$ 270 billion in 2020. Hospital outsourcing has paved its way to become one of the most popular strategies that hospitals adopt to control costs. In hospital outsourcing, a third party or external contractor/service provider takes over the control of management of a hospital or healthcare organizations’ operations, clinical, and hospitality services. The service provider, by applying its expertise achieves economies of scale and thus offers efficient services to the hospitals at optimum costs. This reduces the operating cost of the hospitals and improves profitability. This is a major driving force of the hospital outsourcing market. The service providers offers various services such as IT services, laundry, patients’ records, cafeteria, catering, transport, and several other services. This helps the hospital to focus on their core business. The presence of large number of service providers offers the services at reasonable cost due to increased competition. Moreover, stringent government regulations to maintain electronic medical records are significantly boosting the growth of the hospital outsourcing market.

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Crucial factors accountable for market growth are:

  • Growing popularity of management service providers
  • Rising burden of patients flow
  • Rising growth in geriatric population
  • Technological advancements and increased investments on R & D activities.
  • Increased penetration of healthcare units in developed markets
  • Increased importance of non-core activities in hospitals
  • Availability of numerous service providers in the hospital outsourcing market

Report Highlights

  • By service, the clinical services segment is expected to be the fastest-growing owing to the growing number of diagnostic laboratories, clinics, and private hospitals in the major markets such as US, India, Japan, and UK.
  • By type, the private segment led the global hospital outsourcing market with remarkable revenue share in 2020. The private hospitals seek to earn more profit by reducing their operational costs by assigning the management related activities to the specialized hospital outsourcing service providers.

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Regional Snapshots

North America is the dominating hospital outsourcing market. This is attributable to the fact that major markets in the region like US and Canada has the most developed healthcare infrastructure and a significant number of private and public hospitals operate. The population of US is getting older at a fast pace as compared to any other developed region. Therefore, growing geriatric population coupled with the better access to the hospitalization facilities has perfectly played its role in the growth of the hospital outsourcing market growth. Moreover, strict Federal laws regarding the maintenance of electronic records of patients have a major contribution in the growth of the market in the region.

Asia Pacific is estimated to grow at the fastest rate during the forecast period owing to the increasing shift towards digital technologies. Rising government expenditure on healthcare sector top make the healthcare services accessible to the majority of the population is playing a prominent role in the growth of the hospital outsourcing market in the region. Further, reducing paperwork and moving towards more economic and sustainable alternative in the field of hospital management services is propelling market growth.

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The hospital outsourcing market is primarily driven by the increased number of patients admissions owing to rising prevalence of chronic conditions and diseases amongst the population. Moreover, growing geriatric population, who are prone to diseases is boosting the market growth. According to the United Nations, the global population of age 65 years and above is estimated to reach 1.5 billion by 2050. This factor is surging the importance of management service providers in the healthcare sector.


Data breach is the major restraining factor that may hamper the market growth during the forecast period. The outsourcing enables a number of persons to have access to the data of huge number of patients. This may lead to data breaches particularly in the IT outsourcing services. Hence, this may constraint the market growth in the upcoming years.


The increased adoption of digital media in the management of hospital in-house services has opened the doors for the adoption and implementation of artificial intelligence technologies that will increase efficiency by eliminating errors.


Cybersecurity is a major challenge especially in the IT services of any hospital. A severe cyberattack may put the patient’s life at risk and also result in financial losses to the hospitals. Hence, cybersecurity has an increased importance in today’s digital world.

Market Segmentation

By Service

  • Clinical Services
  • Healthcare IT
  • Transportation Services
  • Business Services
  • Others

By Type

  • Private
  • Public

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World

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