Hospital Market Size in India | Expansion Trends & Forecast 2025

Q: What is the expected growth rate of the hospital market in India?

The hospital market in India is anticipated to grow at a CAGR of 10.8% during 2025–2031.

Q: What are the major growth drivers of the Indian hospital sector?

Key drivers include rising disease prevalence, healthcare policy reforms, expanding insurance coverage, and medical tourism growth.

Q: Which regions are leading the hospital market in India?

Metro cities like Delhi, Mumbai, Bangalore, and Chennai dominate, with increasing development in Tier 2 cities like Lucknow, Indore, and Bhubaneswar.

Q: What challenges are affecting the Indian hospital industry?

Challenges include shortage of skilled staff, infrastructure gaps in rural areas, high cost of advanced treatments, and regulatory hurdles.

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Code: MTA4743

Publication Date: Jul 2025

What is the growth rate of the India Hospital Market?

According to 6Wresearch internal database and industry insights, the India hospital market is projected to expand at a CAGR of 10.8% during the forecast period 2025–2031.

The market is predicted for the rapid expansion due to rising healthcare demand, government infrastructure initiatives, medical tourism, and a growing population.

Key Growth Factors of the India Hospital Market

Rising burden of chronic and lifestyle-related diseases
Government programs like Ayushman Bharat and PM-JAY boosting access
Developments of private hospitals and super-specialty chains
Increasing urbanization and need for quality secondary and tertiary care
Expansion of healthcare insurance coverage and affordability
Surge in medical tourism due to cost-effective and quality care

India Hospital Market Trends

The India hospital industry is experiencing transformation due to major trends such as digital transformation through telemedicine, AI integration, and electronic health records. The shift toward specialty and day-care hospitals is rising among consumers. Tier 2 and Tier 3 cities are becoming growth hotspots due to expansion of infrastructure. The adoption of franchising models is rising among the corporate hospitals and investing in robotic surgeries, smart ICUs, and patient engagement apps.

Emerging Developments in the India Hospital Market

Some emerging developments are occurred in the India Hospital Market including the rise of green hospital buildings, tech-enabled patient monitoring systems, and value-based care models. Startups are collaborating with hospitals for diagnostics, automation, and logistics support. Diagnosis-at-home services, mobile clinics, and cloud-based data systems are contributing in the transformation of patient experiences. Investment in digital healthcare infrastructure is accelerating.