U.S. Health Industry Forecasted to Reach $7.7 Trillion

While the U.S. economy continues to expand, the health industry is forecasted to exceed the growth in gross domestic product (GDP).

During the entire projection period (2023–32), growth in national health expenditures is projected to average 5.6% and outpace the nominal GDP growth rate of 4.3%.

The estimated amount spent on hospital care, clinical services, drugs (including vaccines), and other health services in 2023 reached an all-time high of $4.1 trillion.

According to the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS), projections based on this data are expected to reach $7.7 trillion by 2032.

Published in Health Affairs on June 12, 2024, new CMS data indicates healthcare spending growth is expected to outpace that of the GDP during the coming decade, resulting in a health share of GDP that reaches 19.7% by 2032, up from 17.3% in 2022. 

Within the various areas of the health industry, the growth in prescription drug spending is projected to slow slightly to 6.8% in 2024. In 2025, growth in prescription drug spending is projected to decelerate to 4.6% before accelerating in 2026, a pattern influenced by Medicare's actions.

Furthermore, according to the U.S. CDC, almost 3.5 billion vaccine doses were distributed in the United States over the past ten years.

There is a growing demand for vaccines worldwide, and the U.S. is anticipated to generate the highest revenue in the vaccine market.

Statista recently projected the market will reach $57 billion in revenue by 2024. It is forcasted to expand at an annual growth rate of 5.36%, resulting in a market volume of $70 billion in 2028.

A recent report published in 2023 highlighted 1,600 treatments and vaccines in clinical development just for cancer.

Moreover, following the decline in international travel during the recent pandemic, the global travel vaccines market is estimated to increase at a CAGR of 9.9% through 2028. 

Innovative vaccines for chikungunya, dengue, polio, and tubculosis are expected to protect people against disease outbreaks.

Note: Research data was clarified on June 14, 2024.