North America Healthcare Services Market Size, Share & Industry Analysis, By Type (Diagnostics [Diagnostic Imaging Services, Clinical Laboratory Services], Treatment [Nephrology, Dental, Cardiovascular, Respiratory, and Others], Rehabilitation [Occupational & Physical Therapy, Speech Therapy, Cognitive Behavioral Therapy, and Others], and Others), By Service Provider (Hospitals & Clinics, Diagnostic Imaging Centers, Clinical Laboratories, Rehabilitation Centers, and Others), and Country Forecast, 2025-2032

The North America healthcare services market size was USD 4.01 trillion in 2024. The market is expected to grow from USD 4.39 trillion in 2025 to USD 8.41 trillion by 2032, exhibiting a CAGR of 9.7% during the forecast period.

Healthcare services include formal arrangements and systems constructed to deliver diagnosis, treatment, and other services to the patient population. The increasing prevalence of acute and chronic conditions such as cancer, diabetes, and others is resulting in the growing diagnosis and treatment rate among patients. This, along with the growing aging population, increasing per capita healthcare expenditure, improved healthcare infrastructure, and growing demand for diagnostic imaging services, among others, are some of the additional factors supporting the market growth.

Moreover, key players such as UnitedHealth Group, Fortis Healthcare, and others are focusing on offering innovative healthcare services among the patient population and are anticipated to grow in the market. In conclusion, the market is poised for continued growth, driven by technological advancements, an aging population, and evolving healthcare policies. However, challenges such as trade protectionism and supply chain vulnerabilities necessitate strategic planning and adaptation by industry stakeholders.

MARKET DYNAMICS

Market Drivers

Increasing Prevalence of Diseases Among Patient Population to Boost Market Growth

There is an increasing prevalence of acute and chronic conditions, including cardiovascular diseases, neurological conditions, and others, resulting in a growing rate of diagnosis and treatment among the patient population.

• For instance, according to the 2024 data provided by the Heart Failure Society of America (HFSA), it was reported that approximately 6.7 million Americans over the age of 20 are living with heart failure in the U.S.

Increasing prevalence is further leading to the growing cost burden of chronic and lifestyle diseases, resulting in the growing emphasis of government, healthcare providers, and healthcare agencies toward a routine diagnosis of patients and timely treatment. Furthermore, several healthcare agencies and key players are actively promoting routine diagnosis and treatment through awareness campaigns and programs.

• For instance, in September 2024, the World Health Organization (WHO) organized a public awareness campaign called “Improving diagnosis for patient safety” with the slogan “Get it right, make it safe!” highlighting the critical importance of correct and timely diagnosis in ensuring patient safety and improving health outcomes.

Therefore, increasing initiatives are resulting in rising awareness among the general population toward innovative products for interventional radiology and others. This, along with the key players, is focusing on the R&D activities to introduce products with technological advancements, including 3D imaging, artificial intelligence, and others, further supporting the demand for these products among the population, thereby contributing to the North America healthcare services market size.

MARKET RESTRAINTS

Limited Number of Skilled Professionals to Hamper Market Growth

There is a growing focus on the provision of innovative services among healthcare professionals in the market. However, there is a shortage in the number of skilled healthcare professionals for various indications, such as cardiovascular, nephrology, and others, resulting in reduced access to healthcare facilities, further impacting the routine diagnosis and timely treatment among patients.

• For instance, according to 2023 data published by Stanford University, it was reported that there are only 27 cardiothoracic surgeons per one million people in the U.S.

Additionally, the limited number of healthcare professionals is resulting in delayed diagnosis, reduced quality of care, lack of specialization, inaccurate assessments, and other issues among the patient population. This, along with certain factors, including a lack of awareness about the benefits of early diagnosis of the diseases and timely treatment among patients and others, are some of the additional factors hampering the growth of the market in the region.

• For instance, according to 2025 data published by Medicus Healthcare Solutions, LLC, it was reported that nearly half of U.S. counties lack a single practicing cardiologist, leaving almost 22.0 million Americans without local access to specialized cardiovascular care.

MARKET OPPORTUNITIES

Increasing Utilization of Digital Technologies to Present Lucrative Opportunity

There is an advent of the integration of digital technology in healthcare platforms for the provision of healthcare services. The adoption of digital technology, including telemedicine, electronic health records, and others, is resulting in improved patient care and enhanced operational efficiency.

Increasing investments in research & development activities to launch innovative healthcare platforms further lead to growing advantages offered to consumers along with improved accessibility. This is anticipated to fill the gap and the increasing unmet need for efficient products.

• For instance, in August 2024, VSee Health Inc., collaborated with Stand Together, a provider of comprehensive telehealth services that customize workflow streams and enhance patient care, launched its Aimee telehealth services in Kansas.

There is an increasing preference toward these digital platforms among the patient population owing to increasing benefits such as improved access to healthcare, increased patient engagement, and better management of chronic conditions through remote monitoring. Thus, the growing preference for digitalization is presenting an opportunity for the key players to incorporate these technologies and develop novel products in the market.

• For instance, according to 2023 statistics published by Sagapixel, 80% of people in the U.S. have accessed care via telemedicine.

MARKET CHALLENGES

Inadequate Reimbursement Policies to Limit Market Growth

The availability of adequate reimbursement policies for diagnosis and treatment services has also been an essential factor in the adoption of these services among the patient population. Limited reimbursement policies for these services among the patient population, especially for elective procedures such as cosmetic surgery, among others, further resulting in a reduced adoption rate for these services in the market.

• For instance, according to 2019 data published by the National Center for Biotechnology Information (NCBI), it was reported that only 13.9% of breast reconstruction procedures were reimbursed by Medicaid among 2,691 cases in the U.S.

However, governing bodies and healthcare agencies are now focusing on realigning reimbursement policies to support the increasing adoption rate of these services for various conditions among the patient population.

Therefore, these inadequate reimbursement policies are expected to pose a challenge and hamper the growth of the market.

Other Prominent Challenges

• Trade Protectionism: The imposition of tariffs on medical goods, such as the 10% tariffs on Chinese imports, has raised concerns about increased costs and potential shortages of critical medicines, including cancer treatments and antibiotics.
• Supply Chain Vulnerabilities: Tariffs and trade policies have the potential to disrupt global healthcare supply chains, leading to increased costs for medical supplies and drugs and affecting U.S. medical device manufacturers.

North America Healthcare Services Market Trends

Increasing Preference Toward Home Healthcare Services is the Latest Trend

There is an increasing trend toward the adoption of home healthcare services owing to growing benefits such as personalized care, avoidance of extended hospital stays, dietary support, improved care, and others. For instance, according to 2021 data published by Home Instead, Inc., 70% of patients were comfortable with being in-home care in the U.S.

This, along with the rising healthcare expenditure, also supports the focus of government agencies on the introduction of strategic initiatives to advance home healthcare services in the market. Additionally, the service providers are also focusing on the incorporation of these homecare services among patients, which is further expected to boost the adoption rate for these services in the region.

• In April 2024, the U.S. Food and Drug Administration (FDA) announced the launch of the Home as a Health Care Hub with an aim to advance healthcare-at-home in the U.S.

Therefore, increasing healthcare expenditure in the country is leveraging the prominent players to introduce innovative services, which is anticipated to boost the North America healthcare services market growth during the forecast period.

Other Prominent Trends:

• HealthcareBPO – The adoption of healthcare BPO is particularly driven by the need to reduce healthcare costs and improve operational efficiency.

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IMPACT OF COVID-19

The market experienced a positive impact during the COVID-19 pandemic. The healthcare providers operating in the market reported positive growth in their revenues during the pandemic.

The increasing prevalence of COVID-19 among patients resulted in an increase in the number of inpatient and outpatient admissions for diagnosis and treatment, which contributed to a significant rise in demand for healthcare services. This, along with the growing adoption of home healthcare products and services such as telemedicine, is one of the additional factors responsible for the growth in the market.

• For instance, according to data published by the National Center for Biotechnology Information (NCBI), about 76% of hospital systems used some form of telemedicine during the pandemic in the U.S.

The government organizations and key players were actively focusing on initiatives to fulfil the unmet demand of patients suffering from diseases such as diabetes and others who are experiencing financial hardships during the pandemic.

SEGMENTATION ANALYSIS

By Type

Treatment Segment Dominated Market Due to Increasing Prevalence of Chronic Conditions

On the basis of type, the market is divided into diagnostics, treatment, rehabilitation, and others. The diagnostics are further bifurcated into diagnostic imaging services and clinical laboratory services. The treatment segment is divided into nephrology, dental, cardiovascular, respiratory, and others. The rehabilitation segment is divided into occupational & physical therapy, speech therapy, cognitive behavioral therapy, and others.

The treatment segment dominated the market in 2024. The increasing prevalence of acute and chronic conditions, such as cancer, diabetes, among others, is resulting in a growing number of inpatient and outpatient admissions among patients. This, along with a growing manufacturers’ focus toward R&D activities to launch technological products to treat disease conditions, is also expected to support the growing adoption rate for these services, thereby contributing to the segmental growth.

• According to 2024 data published by the National Cancer Institute (NCI), it was reported that an estimated 2.0 million new cases of cancer will be diagnosed in the U.S.

The diagnostics segment is also expected to grow at a considerable CAGR throughout the forecast period. The growing prevalence of various conditions, including cardiovascular conditions, is resulting in the rising number of imaging procedures among the patient population. This, along with a growing number of diagnostic imaging centers in the U.S. and Canada, is expected to drive the growth of diagnostic imaging services, thereby supporting the segmental growth.

The rehabilitation and other segments are also expected to grow with a considerable CAGR during the forecast period. The growth is primarily due to the increasing cases of mobility and others, resulting in rising demand for rehabilitation services among patients. This, along with the growing number of service providers offering novel services, is also expected to support the growth of these segments in the market.

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By Service Provider

Hospitals & Clinics Segment Dominated Market Due to Increasing Number of Patient Admissions in These Settings

On the basis of service provider, the market is segregated into hospitals & clinics, diagnostic imaging centers, clinical laboratories, rehabilitation centers, and others.

The hospitals & clinics segment dominated the market in 2024. The growth is owing to the increasing number of healthcare settings, including hospitals and clinics, resulting in the rising number of patient admissions in these settings. This, along with the growing number of hospitalization rates of patients suffering from acute and chronic diseases, is likely to support the growing demand for these services in the market.

• For instance, according to the 2025 data published by the American Hospital Association (AHA), there are about 6,093 hospitals in the U.S.

On the other hand, the clinical laboratories segment is also expected to grow at a considerable rate during the forecast period. The growth is due to a growing preference toward clinical laboratories owing to distinct factors, including improved patient engagement in the clinical laboratories. Also, the growing number of clinical laboratories offering novel services is expected to drive segmental growth.

North America Healthcare Service Market Country Outlook

On the basis of country, the market is segmented into the U.S. and Canada.

U.S.

U.S. Dominated Market Due to Increasing Healthcare Expenditure

The market size in the U.S. stood at USD 3.78 trillion in 2024. The growth is due to certain factors, including the increasing prevalence of chronic diseases, growing per capita healthcare expenditure, rising demand for home care devices, and increasing provision of innovative services among the key players.

• According to the 2023 data published by the Centre for Medicare & Medicaid Services (CMS), per capita healthcare expenditure is USD 14,750 per person in the U.S.

Canada

The market in Canada is expected to grow at a considerable rate during the forecast period. The growing prevalence of various diseases, growing technological advancements in diagnostic imaging, increasing diagnostic and treatment procedures, and a growing number of acquisitions and collaborations among the service providers to strengthen their presence are some of the factors supporting the growth of the country in the market.

COMPETITIVE LANDSCAPE

Key Market Players

Increasing Number of Product Launches Led to the Dominance of Key Players

A growing focus on research and development activities to develop and launch novel offerings for diagnosis and treatment among prominent players, such as CVS Health, is likely to support the growth of the company in the market. Additionally, increasing focus on the expansion of their facilities to strengthen their presence is further expected to contribute to the North America healthcare services market share.

• In February 2025, CVS Health introduced flu testing and treatment capabilities with an aim to cater to the growing demand among patients at roughly 1,600 locations in the U.S.

Additionally, UNITEDHEALTH GROUP is also expected to grow owing to its increasing focus on collaborations and partnerships among the other players to strengthen its brand presence. Furthermore, Apollo Hospitals Group and LucidHealth, Inc., are some of the major players in the industry. The growing focus of these players toward the expansion of their facilities to strengthen their geographical foothold is likely to support the growth of these companies in the market.

• In February 2024, LucidHealth, Inc., and HCA Southern Hills Hospital & Medical Center entered into a partnership to bring advanced radiology services to the Las Vegas community.

LIST OF KEY NORTH AMERICA HEALTHCARE SERVICE COMPANIES PROFILED:

• UNITEDHEALTH GROUP (U.S.)
• HCA Management Services, L.P. (U.S.)
• CVS Health (U.S.)
• Apollo Hospitals Group (India)
• Fortis Healthcare (India)
• RadNet, Inc. (U.S.)
• LucidHealth, Inc. (U.S.)
• Fresenius Medical Care (Germany)
• Novant Health (U.S.)
• Kaiser Permanente (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2025: CVS Health and Aetna Better Health granted USD 750,000 to organizations working to increase access to maternal and behavioral health services in the U.S. This helped the company in strengthening its presence.
• January 2025: Doctors, Inc. launched its digital platform business, intending to expand its geographical presence in the U.S.
• December 2024: RadNet Inc.’s subsidiary DeepHealth and Siemens Healthineers announced their plans to collaborate to enhance ultrasound workflows using (AI)-powered SmartTechnology. This partnership aims to improve patient experience and operational efficiency through remote collaboration and enhanced interpretation capabilities.
• November 2024: Akumin Inc. launched Akumin Axis at RSNA 2024, a new platform set to transform patient access in radiology to provide hospitals and physician groups with a single modality or a multi-modality clinic/center.
• June 2024: UNITEDHEALTH GROUP invested USD 1.5 million in school-based telehealth to expand access to mental healthcare for K-12 students in Iowa.

REPORT COVERAGE

The North America healthcare services market report provides qualitative and quantitative insights into the market and a detailed analysis of the market size & growth rate for all possible segments in the market. Along with the market size, forecast, the research report elaborates on the market dynamics and competitive landscape. Various key insights presented in the report are the number of occupational & physical therapists, an overview of occupational and physical therapy, the number of occupational and physical therapy clinics, the average number of patients visiting retail clinics, key providers of dialysis services, and the impact of COVID-19 on the market.

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Report Scope & Segmentation