Pediatric Hospitals Market Size Analysis

The Pediatric Hospitals Market was valued at USD 159.3 billion in 2023 and is expected to reach USD 257.3 billion by 2032, growing at a CAGR of 5.5% over the forecast period 2024-2032.

The Pediatric Hospitals Market Report provides critical statistical insights and trends shaping the industry. Pediatrics highlights incidence and prevalence rates for pediatric diseases and prescription trends by region with the most commonly prescribed medications. The report analyzes healthcare spending trends, including government, private, and out-of-pocket spending on pediatric care. It also investigates drug volume trends, looking at pharmaceutical production and consumption in paediatrics. The report also explores hospital infrastructure and bed capacity, tracing the growth of pediatric and specialized care facilities.

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It evaluates technological integration that centers on the adoption of EHR, telemedicine, and AI-driven diagnostics in pediatric hospitals. Such information is valuable and holds up-to-date processes where emerging trends and challenges can be recognized and ensured by the stakeholders. The pediatric hospitals market can broadly be divided into emergency medicine, pediatric surgery, etc., and has been witnessing robust growth as each hospital improves its existing services and adds new areas of specialization as per the advice of healthcare professionals and organizations. In October 2023, the World Health Organization estimated that 5 million children under the age of 5 died, 47 percent of them in the first month of their lives. This statistic highlights the essential need for specialized pediatric care.

Pediatric Hospitals Market Dynamics

Drivers

• Advancements in medical technology and treatments have led to higher survival rates among pediatric patients, increasing the need for specialized care.

Advancements in medical technology and treatments have significantly improved survival rates among pediatric patients, leading to an increased demand for specialized pediatric care. For example, the All India Institute of Medical Sciences (AIIMS) in New Delhi boasts a 75-80% survival rate among children treated for cancer, managing around 400 new pediatric cancer patients annually. Advances in genomic medicine are also leading to better outcomes. Research initiatives in Australia aim to enhance diagnostic accuracy and personalized treatments for rare childhood diseases, with the goal of achieving a 70% diagnostic success rate and diagnosing all affected children within their first year. Further, the growing use of Artificial Intelligence (AI) in pediatric care is revolutionizing diagnosis and treatment planning. AI-driven tools assist in the real-time analysis of vast data sets, which is vital for managing diseases such as asthma and diabetes, as well as for identifying potential health risks at an early stage and facilitating timely interventions.

Restraints:

• A nationwide shortage of private pediatricians is limiting access to specialized care, leading to longer wait times and delays in diagnosis.

There is also a shortage of private pediatricians, and this is a major restraint for the pediatric hospitals market, which reduces the access to specialized care for children. It has also led to long waiting times for pediatric specialist appointments in the United States, where some patients may wait more than a year for needed consultations. This delay can negatively impact early diagnosis and treatment, which are of utmost importance in pediatric care. Several factors contribute to this shortage. Moreover, pediatricians have traditionally been one of the least well-paid medical specialists, earning up to 25% less than their colleagues, a disincentive for medical graduates, especially ones with large student debt. Moreover, many pediatric patients are covered by Medicaid, which reimburses pediatricians less than private insurance or Medicare, making the specialty less appealing to enter. The implications of this scarcity are far-reaching. This can result in families having to travel long distances or even move to find essential pediatric services, which adds stress and strain to the family financially. Increased reports of child health issues and decreased access to pediatric care can lead to delayed treatments that may result in chronic health issues that could have long-term financial implications.

Opportunities:

• Expanding healthcare infrastructure, including the development of new pediatric health campuses, aims to address the increasing demand for a wider range of pediatric services.

Healthcare infrastructure expansion is currently one of the most significant opportunities in the pediatric hospital market to enhance access to specialized pediatric care worldwide. Recent trends highlight this pattern, indicating an increased focus on the growing demand for pediatric care. Children's Health and UT Southwestern Medical Center have proposed a $5 billion new pediatric health campus in Dallas’s Southwestern Medical District. Covering more than 33 acres, the nearly 2 million-square-foot hospital will comprise two 12-story towers and one eight-story tower, replacing the current Children’s Medical Center Dallas. This expansion will increase inpatient capacity by 38%, adding 552 beds, and is expected to open within the next six to seven years.

Similarly, in North Carolina, UNC Health and Duke Health are collaborating to build the state's first standalone children's hospital. The proposed facility with 500 beds will include an outpatient care center and a behavioral health center, with construction projected to start by 2027 and take six years to be completed. The $2.5 billion project is expected to greatly enhance access to care for regional children. The largest hospital in the world specializing in pediatric oncology was built in Egypt alongside this research; it was the Children’s Cancer Hospital Egypt, with 320 beds. The hospital serves almost half of all pediatric cancer cases in Egypt and has many facilities, including playrooms, a library and a 90,000-square-foot park, to help with holistic care. This is a sign of a global commitment to building pediatric health care infrastructure in an ever-growing demand for specialized services, helping to improve health outcomes for children in the United States and around the world.

Challenges:

• The high cost of pediatric care creates barriers to access for many families, leading to delayed or forgone necessary treatments and worsened health outcomes

Pediatric healthcare costs are on the rise, which causes many challenges for families and healthcare systems around the world. In the United States, medical spending for children with mental health diagnoses increased 31% from 2017 to 2021, with an average of $4,361 spent per child each year. That increase added to an estimated $31 billion spent on child mental health services in 2021, nearly half of all spending on pediatric medical care. This problem is compounded by the severe shortage of pediatric healthcare workers. A report published in 2024 by the Children’s Hospital Association identified widespread vacancies in multiple pediatric specialties, with shortages most acute in the neurological, behavioral and mental health specialties. This shortage contributes to longer wait times and decreased access to critical services, which negatively impacts children's health outcomes.

Geographic disparities further exacerbate access to care. Children residing in rural areas are over six times more likely to be admitted to hospitals lacking pediatric services compared to their urban counterparts. Nearly half of these rural hospitalizations do not result in transfers to facilities equipped with pediatric care, underscoring the critical need to expand pediatric services in underserved regions. Furthermore, rising global healthcare costs, such as an estimated medical expense increase of 10.4% in 2025, are on the rise. The increase is being driven by the development of new medical technologies and pharmaceuticals, as well as increased demand for healthcare services. This trend poses sustainability challenges for healthcare systems and financial burdens on families.

Pediatric Hospitals Market Segmentation Analysis

By therapeutic area

In 2023, the respiratory segment held the largest revenue share of 21% of the market. The health of children is certainly influenced by varied environmental determinants, among which respiratory diseases constitute the most important ones. For children under the age of 18, asthma is one of the most common chronic diseases, with an estimated 5.1 million children diagnosed in the US, according to the Centers for Disease Control and Prevention (CDC). Acute lower respiratory infections, including pneumonia, have been estimated to cause 15% of all deaths in children younger than 5 years worldwide, according to the World Health Organization. Government agencies across the globe have realised the need to deal with paediatric pulmonary issues. For example, the U.S. Environmental Protection Agency (EPA) has introduced tough air quality standards and educational programs to reduce kids' exposure to environmental toxins that can provoke respiratory issues. The European Respiratory Society has also been advocating for policies to improve air quality and reduce the burden of respiratory diseases in children.

Additionally, increasing uptake of respiratory care technologies, including high-flow nasal cannula therapy and non-invasive ventilation predominantly among the pediatric population, are further steering the growth of this particular segment. The pediatric respiratory care market has also seen growth due to innovations in treatment that have improved treatment outcomes and decreased the duration of stay of pediatric patients being treated for respiratory conditions.

By type

In 2023, the for-profit privately owned segment held the largest revenue share in the market at 40%. These factors partially explain this dominance at for-profit medical institutions, which leverage their profitability to buy state-of-the-art equipment, attract premier medical doctor talent, and design services for a subset of patients. In 2022, about 24% of all community hospitals in the United States were investor-owned for-profit facilities, according to the American Hospital Association. The for-profit pediatric hospitals have shown themselves capable of responding rapidly to market demands and of putting in place innovative models of care. Private facilities and practitioners usually have greater freedom to designate their resources, enabling them to invest in cutting-edge technology and facilities that can draw patients and qualified providers alike. The U.S. Government Accountability Office found that, compared with their non-profit competitors, for-profit hospitals had higher margins in general and were more likely to provide certain specialized services. The growth of for-profit pediatric hospitals has led to the implementation of value-based care models, which align with government incentives to improve the quality of healthcare while managing costs. The Centers for Medicare & Medicaid Services (CMS) has championed similar models, and for-profit organizations have quickly capitalized on them, frequently improving patient outcomes and operational efficiencies.

Pediatric Hospitals Market Regional Insights

North America held the dominant market share of 37% in the pediatric hospitals market in 2023. These growth factors can be attributed to the advanced healthcare infrastructure, stringent healthcare expenditure, and pediatric research and innovation. In 2022, there were 223 children’s hospitals in the United States, which provide specialized care to millions of children each year, according to the American Hospital Association. The U.S. government demonstrated its dedication to the health of children with its investment in universal coverage for pediatric care. "The National Institutes of Health (NIH), the nation's largest supporter of biomedical research this year appropriated nearly $4.7 billion to pediatric research, exemplifying the nation's commitment to improving children's health outcomes.

Asia Pacific is expected to grow at the fastest CAGR during the forecast period. Exploding demand owing to the rising healthcare expenditure, better healthcare infrastructure, and increasing awareness about pediatric health problems, especially in overpopulated countries like China and India, are acting as drivers for this market. In India, the government has been rolling out schemes such as the Rashtriya Bal Swasthya Karyakram (RBSK) that has made it mandated to provide comprehensive health services to all children until 18 years of age. According to China's National Health Commission, there were 564 children's hospitals at the end of 2022, a substantial increase over the years, which reflects the Chinese government's attention toward pediatric healthcare services. These driving factors, along with the region's massive pediatric population, make it a lucrative market for the pediatric hospital sector.

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Key Players in the Pediatric Hospitals Market

• Asan Medical Center

• Boston Children's Hospital

• Children’s Health Queensland (The State of Queensland)

• Children’s Hospital Los Angeles

• Cincinnati Children's Hospital Medical Center

• Great Ormond Street Hospital for Children

• Hôpital Necker-Enfants Malades/AP-HP

• Texas Children’s

• The Children’s Hospital of Philadelphia

• The Hospital for Sick Children (SickKids)

Recent Developments in the Pediatric Hospitals Market

In February 2025, Children's Health and The University of Texas Southwestern Medical Center announced plans for a new $5 billion pediatric health campus in Dallas, Texas. This state-of-the-art facility aims to address the growing demand for comprehensive pediatric services in the region.

In September 2024, the U.S. Department of Health and Human Services announced a new initiative to enhance mental health services for children and adolescents, dedicating $1.2 billion to increase access to pediatric mental health care nationwide.