“Global Medical Office Buildings Market to reach a market value of USD 62.6 Billion by 2031 growing at a CAGR of 6.3%”
The Global Medical Office Buildings Market size is expected to reach $62.6 billion by 2031, rising at a market growth of 6.3% CAGR during the forecast period.
The aging population in Europe has contributed to the growing need for healthcare services, including physician offices, diagnostic centers, and outpatient care facilities housed in MOBs. Consequently, the Europe region would acquire nearly 30% of the total market share by 2031. Demand for MOBs is fuelled by the region's robust emphasis on universal healthcare coverage and a high standard of healthcare delivery. Overall, the market in Europe is characterized by a well-developed healthcare infrastructure and increasing investments in healthcare.
The rise in global healthcare expenditure is driving a significant expansion in healthcare infrastructure, notably in the proliferation of MOBs. Furthermore, the increasing demand for specialized healthcare services and the advancements in medical technology are the primary factors driving the necessity for well-equipped MOBs. Hence, increasing healthcare expenditure will aid in the growth of the market. Additionally, Healthcare providers increasingly invest in state-of-the-art facilities that accommodate advanced medical equipment and support telemedicine and other digital healthcare services. Moreover, MOBs are designed to support the growing telemedicine and digital healthcare services trend. Thus, technological advancements in healthcare drive the need for modern, well-equipped facilities like MOBs.
The COVID-19 pandemic resulted in a market slowdown as healthcare providers prioritized the management of the immediate crisis, which forced the postponement or cancellation of elective procedures. On the other hand, the pandemic also highlighted the importance of well-equipped healthcare facilities, including MOBs, in supporting the delivery of healthcare services. Additionally, the pandemic underscored the importance of resilient healthcare infrastructure, including MOBs, in ensuring continuity of care during health crises. Hence, the pandemic had an overall positive impact on the market.
However, Significant obstacles confront developers and investors in the healthcare real estate sector as a result of the increasing costs. The cost of medical equipment is also a significant consideration for developers of MOBs. Healthcare facilities require expensive medical equipment to provide quality care to patients. Hence, these factors may hamper the growth of the market.
Based on type, the market is characterized into physician offices, ambulatory surgery centers, wellness centers, and others. The ambulatory surgery centers segment procured 5% revenue share in the market in 2023. Ambulatory surgery centers (ASCs) offer a more cost-effective alternative to traditional hospital-based surgery, as they are typically able to perform procedures at a lower cost and with shorter recovery times.
Free Valuable Insights: Global Medical Office Buildings Market size to reach USD 62.6 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment acquired 38.5% revenue share in the market in 2023. A large aging population necessitating healthcare services, a high prevalence of chronic diseases necessitating regular medical care, and a well-established healthcare infrastructure are all contributing factors to the growth.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 38.9 Billion |
| Market size forecast in 2031 | USD 62.6 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 6.3% from 2024 to 2031 |
| Number of Pages | 135 |
| Number of Tables | 180 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, Region |
| Country scope |
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| Companies Included | PCL Industrial Constructors, Inc., Swinerton Inc., Skanska Group, Clark Construction Group, LLC, Hensel Phelps Construction Co., James G Davis Construction Corporation, Andersen Construction, Adolfson & Peterson Construction, Pepper Construction and HKS Inc. |
By Type
By Geography
This Market size is expected to reach $62.6 billion by 2031.
Growing healthcare expenditure globally are driving the Market in coming years, however,Rising costs of developing and maintaining MOBs restraints the growth of the Market.
PCL Industrial Constructors, Inc., Swinerton Inc., Skanska Group, Clark Construction Group, LLC, Hensel Phelps Construction Co., James G Davis Construction Corporation, Andersen Construction, Adolfson & Peterson Construction, Pepper Construction and HKS Inc.
The expected CAGR of this Market is 6.3% from 2023 to 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $23.2 billion by 2031.
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