PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1753219
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1753219
Global Value-based Healthcare Market to Reach US$25.1 Billion by 2030
The global market for Value-based Healthcare estimated at US$10.1 Billion in the year 2024, is expected to reach US$25.1 Billion by 2030, growing at a CAGR of 16.4% over the analysis period 2024-2030. Pay for Performance, one of the segments analyzed in the report, is expected to record a 15.3% CAGR and reach US$5.8 Billion by the end of the analysis period. Growth in the Patient-centered Medical Home segment is estimated at 14.0% CAGR over the analysis period.
The U.S. Market is Estimated at US$2.8 Billion While China is Forecast to Grow at 21.4% CAGR
The Value-based Healthcare market in the U.S. is estimated at US$2.8 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$5.4 Billion by the year 2030 trailing a CAGR of 21.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.2% and 14.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.0% CAGR.
Global "Value-Based Healthcare" Market - Key Trends & Drivers Summarized
Why Is the Traditional Healthcare Model Giving Way to Value-Based Care?
The global healthcare industry is undergoing a significant transformation, pivoting away from volume-based models-where providers are paid per service-to value-based healthcare (VBHC), where payments are linked to patient outcomes and care quality. This shift is driven by the unsustainable rise in healthcare costs, fragmented care delivery, and suboptimal patient outcomes in fee-for-service systems. Value-based care realigns incentives by rewarding providers for efficiency, coordination, and measurable health improvements rather than the sheer quantity of services delivered. Payers, including private insurers and public health systems, are increasingly adopting bundled payments, shared savings programs, and outcome-based contracts to hold providers accountable. This evolution is also spurred by chronic disease prevalence, aging populations, and digital advancements that enable outcome tracking and risk stratification. VBHC empowers patients through personalized care pathways, enhances provider accountability, and fosters systemic efficiency, making it a cornerstone of next-generation healthcare reform efforts worldwide.
How Are Digital Technologies Enabling the Rise of Value-Based Healthcare?
Technology is the backbone of value-based healthcare, enabling real-time data sharing, outcome measurement, and patient engagement at scale. Electronic health records (EHRs), telemedicine, and mobile health applications have become essential tools in facilitating coordinated, continuous, and data-driven care. Advanced analytics platforms leverage big data to predict patient risk, monitor chronic disease progression, and personalize treatment plans. Artificial intelligence (AI) is being used to analyze large volumes of clinical and claims data, identify care gaps, and recommend evidence-based interventions. Remote patient monitoring (RPM) devices allow for proactive care management, particularly for high-risk patients with conditions like diabetes, hypertension, and heart failure. Interoperability among health IT systems is also improving, making it easier for multiple stakeholders-hospitals, payers, primary care physicians, and specialists-to collaborate effectively. These digital capabilities not only support care quality improvement but also make performance-based payment models viable and scalable across diverse healthcare systems.
Can Stakeholder Alignment and Policy Reform Drive Widespread Adoption?
The transition to value-based healthcare hinges on the collective alignment of diverse stakeholders-governments, payers, providers, pharmaceutical companies, and patients-toward shared health goals. Policymakers are playing a critical role by enacting regulations and incentives that support VBHC adoption. In the U.S., initiatives like the Medicare Shared Savings Program and Accountable Care Organizations (ACOs) have demonstrated early success in cost reduction and quality enhancement. Similarly, countries like Sweden, the Netherlands, and Singapore have incorporated VBHC principles into national health strategies. Pharmaceutical and medical device companies are also embracing value-based agreements that tie reimbursement to real-world effectiveness, rather than unit sales. Employers and insurers are demanding outcome-based care for their covered populations to manage long-term costs. Patient advocacy is growing stronger, demanding transparency, personalized care, and measurable outcomes. Education, trust-building, and data transparency remain crucial for overcoming resistance and establishing value-based frameworks as a norm rather than a niche.
What Is Fueling the Expansive Growth in the Value-Based Healthcare Market?
The growth in the value-based healthcare market is driven by several factors rooted in healthcare system inefficiencies, payer innovations, and changing patient expectations. Rising healthcare expenditures-without proportional gains in patient outcomes-have compelled stakeholders to seek more sustainable, performance-linked care models. The proliferation of chronic illnesses and multimorbidity requires long-term, coordinated care, which is better supported through VBHC frameworks. Increasing adoption of digital health technologies enables accurate measurement of health outcomes and cost metrics, making value-based reimbursement practical. Employers and private payers are advocating for value-based insurance designs that focus on preventive care and long-term health outcomes, thereby driving demand from the payer side. Meanwhile, patients are becoming more involved in their healthcare journeys, expecting cost transparency, treatment efficacy, and personalized experiences-all of which VBHC is structured to deliver. Government reforms and global health initiatives are further institutionalizing value-based approaches through policy support, pilot programs, and international best practice sharing. As these dynamics intensify, VBHC is transitioning from a theoretical model into a dominant paradigm poised to redefine healthcare delivery on a global scale.
SCOPE OF STUDY:
The report analyzes the Value-based Healthcare market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Models (Pay for Performance, Patient-centered Medical Home, Shared Savings, Shared Risk, Bundled Payment, Capitation Models); Payer (Medicare & Medicare Advantage, Medicaid, Commercial); Providers (Home Healthcare, Institutional Care, Self-Care, Hospital Therapy)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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