New Delhi, Nov 11 India’s private hospital sector is projected to reach $202.5 billion by 2030 from an estimated $122.3 billion in 2025, driven by rising demand, private investment, government initiatives and technology adoption such as AI and telemedicine, a report said on Tuesday.
India needs 2.4 million additional hospital beds, necessitating 2 billion square feet of space to build the healthcare infrastructure, the report from credit rating agency Brickwork Ratings said.
The sector recorded 72 deals worth $3.5 billion in Q3 2025, up 166 per cent quarter‑on‑quarter in total deal value.
In 2024, India's hospital sector experienced significant mergers and acquisitions (M&A), reflecting robust investor interest and a strategic shift towards expanding healthcare services across the country, the report noted.
“The outlook for credit ratings of the private hospital industry in India is ‘Positive’ due to robust demand, healthy financial performances, effective risk management, and robust expansion strategies by leading hospital chains,” said Rajeev Sharan, Head of Research, Brickwork Ratings.
The report said that India’s medical tourism market, valued at $8.7 billion in 2025, is set to almost double to $16.2 billion by 2030, driven by affordable, high-quality care and streamlined visa processes.
Ranking 10th in the Medical Tourism Index, India attracted 7.3 million foreign patients in 2023–24, with rising demand for specialised treatments and strong international partnerships boosting growth.
Leading hospitals reported a rise in ARPOB (average revenue per occupied bed), which now ranges from about Rs 38,000 to over Rs 74,000 per bed per day, the report said.
ARPOB is expected to grow in the coming years on account of improving speciality and payer mix and rising demand for high-value procedures, it added.
Further, it predicted that the average length of stay (ALOS) is expected to remain low at around 3.4 days through 2030, leading to better bed utilisation. Low ALOS is driven by ongoing operational improvements, technological upgrades, and faster patient throughput.
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