Hospital Outsourcing Market Expands in 2025 with USD 421.21 Billion Valuation and Growing Telemedicine Adoption

The global hospital outsourcing market size is calculated at USD 421.21 billion in 2025 and is expected to reach around USD 1021.17 billion by 2034, growing at a CAGR of 10.34% for the forecasted period.

Ottawa, July 09, 2025 (GLOBE NEWSWIRE) -- The global hospital outsourcing market size was valued at USD 381.74 billion in 2024 and is predicted to hit around USD 1021.17 billion by 2034, a study published by Towards Healthcare a sister firm of Precedence Research.

The growing demand from hospitals and healthcare organizations for non-clinical tasks, clinical tasks for specific departments, which also helps reduce the costs and streamline the operations which drives the demand and helps grow the market.

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Key Takeaways

North America dominated the hospital outsourcing market share by 71% in 2024
Asia Pacific is estimated to grow at the fastest rate during the forecast period.
By service, the clinical services segment held the largest share of the market in 2024.
By service, the transportation services segment is expected to grow at a lucrative rate in the market during the forecast period.
By type, the private hospitals segment captured the major share of the hospital outsourcing market in 2024.
By type, the public hospitals segment is estimated to grow rapidly in the market during the predicted timeframe.

Market Overview & Potential

Hospital outsourcing involves contracting tasks or services to external providers, both clinical and non-clinical, to streamline operations, cut costs, and focus on patient care. Non-clinical tasks include administrative functions like billing, coding, transcription, IT support, housekeeping, and patient transport. Clinical outsourcing covers specialized services such as pathology, radiology, and telemedicine.

Some hospitals outsource entire departments, like emergency or anesthesiology. Reasons include cost savings, allowing hospitals to focus on core activities, accessing specialized skills without extensive investment, and improving efficiency. It also enhances patient experiences, offers scalability, and includes medical BPO, managed services, and remote services like telehealth.

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What Are the Key Growth Potentials Responsible for The Growth of The Hospital Outsourcing Market?

The key growth drivers responsible for the growth of the market are the growing and expanding demand for cloud-based solutions for data storage and to reduce infrastructure costs, and AI-powered healthcare management to optimize the process, specialized outsourcing for specific clinical functions, data analytics, and management for optimization of resource allocation and to improve care deliver, another driver is the remote patient monitoring to help hospital improve patient engagement, reduce readmissions and manage chronic conditions effectively which drives the growth of the market.

The growth is also driven by the need for cost efficiency, focus on core competencies, access to specialized expertise, and technological advancements in electronic health records, telehealth, and other digital health technologies. These factors create a great opportunity for the growth of the market.

What Are the Growing Trends Associated with The Hospital Outsourcing Market?

Increased Adoption of Technology

The increasing adoption of technology like AI, machine learning, and cloud-based solutions to optimize the outsourced processing for medical billings fuels the growth of the market.

Focus On Core Competencies

To provide quality patient care and for greater efficiency and cost savings hospital and medical sectors are outsourcing non-core functions is a growing trend that drives the growth.

Technological Advancements

Technological advancements like integration of AI and automation to streamline operations and reduce costs by improving accuracy, fuel the demand and growth of the market.

Specialized Services

The demand for specialized services like telemedicine, data analytics, and regulatory compliance support is being outsourced by the healthcare sector, which fuels the growth of the market.

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What Is the Growing Challenge in The Hospital Outsourcing Market?

The key growth challenges responsible for limiting the growth of the market are the regulatory and legal frameworks, along with risk management and misaligned goals, which are a challenge that hinders the growth of the market. The outsourcing leads to a loss of control over quality and standards, and also requires risk management processes and plans to overcome this. The vendors' and clients' goal misalignment also affects the growth, leading to dissatisfaction and quality loss, limiting the adoption. These factors and challenges are responsible for limiting the growth and hindering the adoption.

Regional Analysis

How Did North America Dominate the Hospital Outsourcing Market In 2024?

North America dominated the market share by 71% in 2024. The growth of the market is driven by the growing and increasing adoption of digital health systems due to digital transformation in the region, which leads to a surge in patient data, which increases the adoption of digital systems for effective management, which rises the demand for outsourcing, supporting the growth in the region.

The other factors and drivers responsible for the growth are the increasing healthcare spending in the region which demands for management of costs and improved efficiency, along with well-developed infrastructure, complexity of the US healthcare system, focus on core competencies, clinical services outsourcing demand and growth in multispecialty hospitals in the region fuels the demand for the market and also supports the growth of the market in the region.

The U.S. uses hospital outsourcing to enhance healthcare efficiency, reduce operational costs, and improve patient care quality. By delegating non-core services like billing, IT, and logistics to specialized firms, hospitals focus more on clinical care, expand access, and adopt innovations ultimately driving sustainable growth across the healthcare ecosystem.

According to Volza's global Export data, the world shipped out 44,958 Healthcare shipments from November 2023 to October 2024 (TTM). These exports were handled by 2,614 Indian exporters to 2,719 buyers.
Globally, India, the United States, and China are the top three exporters of Hospital Equipment. India is the global leader in Hospital Equipment exports with 77,395 shipments, followed closely by the United States with 36,460 shipments, and China in third place with 17,780 shipments.

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What Made Asia Pacific Significantly Grow in the Hospital Outsourcing Market?

Asia Pacific is estimated to grow at the fastest rate during the forecast period. The growth of the market is driven by the increasing healthcare costs and the increasing aging population, which increases the demand for the market in the region. The Major players in the Asia Pacific hospital outsourcing market include Cerner Corporation, Sodexo, and Aramark Corporation, who plays a crucial role in the growth of the market in the region.

The key growth factors responsible for the growth of the market in the region are cost optimization by managing and reducing the operational costs and improving efficiency, focus on core competencies, increasing aging population and chronic diseases, government policies promoting privatization and outsourcing, which boosts the growth of the market. The growing demand from private and public hospitals and the increasing adoption of outsourcing in the region drive the growth and expansion of the market.

China leverages hospital outsourcing to modernize its healthcare system, control costs, and meet rising demand. By outsourcing services such as IT, medical billing, diagnostics, and facility management, hospitals improve efficiency and patient care. This strategy supports healthcare reforms, promotes private sector collaboration, and accelerates digital transformation in China's healthcare sector.

According to Volza's India Export data, India shipped out 5,318 Hospital Equipment shipments from October 2023 to September 2024 (TTM). These exports were handled by 4 Indian exporters to 19 buyers.
Globally, India, Germany, and Mexico are the top three exporters of Hospital Equipment. India is the global leader in Hospital Equipment exports with 40,158 shipments, followed closely by Germany with 7,338 shipments, and Mexico in third place with 2,903 shipments.

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Segmental Insights

By Service

How Did Clinical Services Segment Dominate the Hospital Outsourcing Market In 2024?

The clinical services segment held the largest share of the market in 2024. The clinical services segment is a major driver of growth in the hospital outsourcing market, as hospitals seek to improve patient care quality while reducing operational complexities and costs. By outsourcing specialized services such as diagnostic imaging, pathology, radiology, dialysis, and certain surgical procedures, hospitals gain access to advanced technology, skilled expertise, and streamlined workflows.

This approach helps address challenges like staff shortages and rising healthcare costs, while allowing hospitals to focus on core functions. Moreover, outsourcing clinical services supports better compliance with regulatory standards and improves patient outcomes, ultimately leading to enhanced efficiency, profitability, and overall healthcare delivery. These factors drive the growth and expansion of the market.

The transportation services segment is expected to grow at a lucrative rate in the market during the forecast period. The transportation services segment plays a crucial role in the hospital outsourcing market by ensuring the safe and timely movement of patients, medical equipment, specimens, and pharmaceuticals, fueling the demand. Outsourcing these services helps hospitals reduce administrative burdens and operational costs while improving efficiency and reliability.

Specialized transport providers offer advanced logistics solutions, temperature-controlled vehicles, and trained personnel to handle critical and sensitive materials. This ensures compliance with safety standards and enhances patient experience. Additionally, outsourcing transportation allows hospitals to focus more on core clinical activities, optimize resource utilization, and improve overall healthcare service delivery and operational performance. These factors drive the growth and expansion of the market.

By Type

How Did Product Segment Dominate the Hospital Outsourcing Market In 2024?

The private hospitals segment captured the major share of the market in 2024. The growth of the market is driven by the growing adoption of outsourcing services by private hospitals due to demand for cost optimization to manage expenses, access to specialized expertise, particularly in areas like IT and healthcare revenue cycle management, along with, focus on core competencies by providing high-quality patient care which drives the growth of the market.

The impact of outsourcing on private hospitals is improved efficiency, cost savings, and enhanced patient experience, which fuels the demand. The commonly outsourced services by private hospitals are medical billing and coding, IT management, facility management, and other services like healthcare staffing, laboratory services, and patient logistics, which increase the adoption and growth of the market globally.

The public hospitals segment is estimated to grow rapidly in the hospital outsourcing market during the predicted timeframe. The growth of the market is driven by the growing aspects like cost reduction, focus on core competencies, access to specialized expertise, and increased efficiency, which drive the growth of the market.

The rising adoption of outsourcing due to increasing healthcare costs, which demands controlling costs by leveraging economies of scale and specialized services from external providers, increases the adoption of the market. The technological advancements and adoption of cloud-based solutions, AI, and digital health tools, and increased focus on the value-based care model also support the growth and expansion of the market.

Recent Developments

In July 2025, Health tech company Aidoo, in collaboration with tech giant NVIDIA, introduced the Blueprint for Resilient Integration and Deployment of Guided Excellence (BRIDGE). This open-source network is designed to unify validation, deployment, and trust-building processes, helping accelerate the transition of AI solutions from pilot stages to practical, real-world clinical applications. By streamlining these critical steps, BRIDGE aims to foster wider adoption of AI in healthcare, ultimately improving patient outcomes and operational efficiency.
In January 2025, GE HealthCare and the University of California, San Francisco (UCSF) launched a Care Innovation Hub through a joint research collaboration with UCSF’s Department of Radiology & Biomedical Imaging. This initiative aims to tackle key clinical challenges, including improving access to advanced medical imaging, enhancing noninvasive diagnosis and management of neurological and neurodegenerative diseases, and advancing precision oncology. By combining expertise and resources, the partnership seeks to drive innovation, improve patient outcomes, and make cutting-edge medical technologies more widely accessible.

Top Companies and Their Contributions to the Hospital Outsourcing Market

Company	Contribution & Offerings
Allscripts	Offers EHR, revenue cycle management, and population health services. Supports clinics and hospitals with digital solutions.
Cerner Corporation	Provides health information tech, including EHRs, analytics, and population health tools. Key player in healthcare IT outsourcing.
The Allure Group	Operates skilled nursing facilities, focusing on post-acute care outsourcing services. Emphasizes quality patient outcomes.
Integrated Medical Transport	Specializes in outsourced non-emergency and emergency medical transportation services, improving hospital logistics.
Sodexo	Delivers outsourced food services, facilities management, and patient support for hospitals and healthcare facilities globally.
Aramark Corporation	Provides healthcare food services, environmental services, and supply chain logistics to hospitals and senior living centers.
LogistiCare (ModivCare)	Major player in non-emergency medical transportation and personal care management, connecting patients to healthcare services.
Flatworld Solutions Inc.	Offers outsourcing in medical billing, transcription, teleradiology, and healthcare BPO services worldwide.
Abbott	Although primarily a healthcare manufacturer, it outsources diagnostics and remote monitoring services to support care delivery.
The Allure Group	Enhances long-term care with outsourced therapy, rehab, and administrative services in skilled nursing facilities.

Browse More Insights of Towards Healthcare:

Smart Hospitals Market:
In 2024, the smart hospitals market is valued at USD 58.22 billion and is expected to reach USD 68.55 billion in 2025. With growing use of advanced technology in hospitals, the market is set to reach around USD 298.07 billion by 2034, growing at a strong pace of 17.74% each year from 2025.

Hospital HVAC Systems Market:
The hospital HVAC systems market, worth USD 11.03 billion in 2024, will likely grow to USD 11.83 billion in 2025. It is projected to hit USD 22.19 billion by 2034, expanding steadily at 7.24% annually, as hospitals focus more on clean air and infection control.

Healthcare ERP Market:
Starting at USD 7.99 billion in 2024, the healthcare ERP market will grow to USD 8.57 billion in 2025, and reach about USD 16.06 billion by 2034. This 7.23% annual growth reflects the rising need for efficient data and operations management in healthcare.

Cold Storage Market:
The cold storage market is projected to grow from USD 172.98 billion in 2025 to nearly USD 479.69 billion by 2034. This 12% yearly growth is driven by increasing demand for safe storage of food, medicines, and vaccines.

Hospital Services Market:
One of the largest sectors, the hospital services market is valued at USD 11.07 trillion in 2024, set to reach USD 12.08 trillion in 2025. It is expected to grow to USD 26.56 trillion by 2034, expanding at a 9.15% yearly rate due to rising global healthcare needs.

Medical Billing Outsourcing Market:
This medical billing outsourcing market is worth USD 15.45 billion in 2024 and will grow to USD 17.35 billion in 2025. By 2034, it is expected to hit USD 49.26 billion, growing at 12.3% annually as healthcare providers increasingly turn to outsourcing to simplify billing.

Medical Affairs Outsourcing Market:
Starting at USD 2.25 billion in 2024, the medical affairs outsourcing market is projected to reach USD 2.55 billion in 2025 and around USD 8.07 billion by 2034. It’s growing at a strong 13.64% yearly rate due to the rising complexity of drug development and compliance needs.

Pulse Oximeter Market:
The market for pulse oximeters is expected to grow from USD 3.56 billion in 2024 to USD 3.8 billion in 2025, eventually reaching around USD 6.76 billion by 2034, driven by growing awareness of health monitoring.

Sterile Drug Product Testing Market:
The sterile drug product testing market is growing steadily from 2024 to 2034, as pharmaceutical companies boost production of injectable drugs and biologics. Strict regulations are pushing manufacturers to invest in better testing solutions to ensure safety and sterility.

CDMO Services for Pharma and Biotech:
Pharma and biotech CDMO services market are seeing major growth from 2024 to 2034. More pharmaceutical and biotech companies are outsourcing their work to focus on research, reduce costs, and speed up production timelines.

Key Players List in Hospital Outsourcing Market:

Allscripts
Cerner Corporation
The Allure Group
Integrated Medical Transport
Sodexo
Aramark Corporation
LogistiCare Solutions, LLC (ModivCare)
Flatworld Solutions Inc.
Abbott
ABM INDUSTRIES INCORPORATED

Segments Covered in the Report

By Service

Healthcare IT
Clinical Services
Business Services
Transportation Services
Others

By Type

Public
Private

By Region

North America
- U.S.
- Canada
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
Latin America
- Brazil
- Mexico
- Argentina
Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait

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