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October 2025
The global rehabilitation therapy services market size is calculated at USD 29.45 billion in 2024, grew to USD 31.88 billion in 2025, and is projected to reach around USD 64.32 billion by 2034. The market is expanding at a CAGR of 8.24% between 2025 and 2034.
The rehabilitation therapy services market is primarily driven by the increasing accidents and injuries and the growing need to improve well-being. People from underdeveloped and developing countries are becoming aware of advanced rehabilitation therapies. Government organizations launch initiatives and provide funding to develop innovative rehabilitation devices. Artificial intelligence (AI) enables real-time monitoring of patients and predicts treatment outcomes. Virtual reality (VR) and augmented reality (AR) present future opportunities for market growth.
| Table | Scope |
| Market Size in 2025 | USD 31.88 Billion |
| Projected Market Size in 2034 | USD 64.32 Billion |
| CAGR (2025 - 2034) | 8.24% |
| Leading Region | North America by 40% |
| Market Segmentation | By Therapy Type, By Application, By Service Delivery Model, By Patient Group, By End-User, By Region |
| Top Key Players | U.S. Physical Therapy, Inc., Kindred Healthcare, Genesis Rehab Services, RehabCare (Kindred), Shirley Ryan AbilityLab, Athletico Physical Therapy, NovaCare Rehabilitation, HCR ManorCare (ProMedica), Amedisys, Inc., Interim HealthCare, Brooks Rehabilitation, Kessler Institute for Rehabilitation, SavaSeniorCare Rehabilitation Services, Concentra Inc., Fresenius Medical Care |
The rehabilitation therapy services market is experiencing robust growth, driven by aging populations, the rising prevalence of chronic diseases, an increasing incidence of accidents and injuries, and a growing awareness of the long-term benefits of rehabilitation. It encompasses medical and therapeutic interventions designed to restore or enhance the physical, cognitive, and functional abilities of patients recovering from injury, illness, or chronic conditions.
The rehabilitation services span physical therapy, occupational therapy, speech and language therapy, respiratory therapy, and others. They play a vital role in recovery from stroke, orthopedic surgeries, neurological disorders, cardiac conditions, and musculoskeletal impairments. Technological integration (tele-rehabilitation, robotics, VR/AR therapy) is expanding the scope and accessibility of rehabilitation services worldwide.
AI plays a vital role in rehabilitation therapy services by enabling data-driven and personalized patient care. AI and machine learning (ML) algorithms can analyze vast amounts of patient data and predict treatment outcomes. They allow healthcare professionals to monitor a patient continuously and make proactive clinical decisions. AI-based telerehabilitation platforms facilitate remote monitoring and continuous care, making rehabilitation more accessible.
Various companies develop AI-based solutions to offer efficient and personalized patient care. Xyonix, a Seattle-based software company, builds custom AI models to improve sports and rehabilitation therapy outcomes. Their AI models can automatically analyze a patient’s progress through their posture, gait, and body pose.
The government support for the rehabilitation therapy services market includes:
| Organization/Government | Initiative | Description |
| World Health Organization (WHO) | Rehabilitation 2030 | To address the unmet need for rehabilitation and highlight the significance of strengthening health systems to provide rehabilitation |
| United States | Rehabilitation Services Administration (RSA) | Provides funding to help individuals with physical or mental disabilities obtain employment and live more independently |
| United Kingdom | Rehabilitation Grants Scheme | Investment of £3 million from April 2026 to March 2029 to support rehabilitation outcomes across public sector prisons, probation services, and the youth custody estate |
By therapy type, the physical therapy segment held a dominant presence in the market with a share of approximately 42% in 2024, due to the rising prevalence of chronic disorders and increasing physical injuries. People are increasingly aware of regular physical exercise and sports activities. Sports injuries affect approximately 3.5 million people annually, resulting in loss of participation and productivity. Chronic disorders potentiate the chance of surgeries, necessitating patients to undergo post-surgical recovery. All these reasons accelerate the need for physical therapy.
By therapy type, the respiratory therapy segment is expected to grow at the fastest CAGR in the market during the forecast period. The increasing prevalence of respiratory disorders, such as asthma and COPD, boosts the segment’s growth. The American Lung Association reported that COPD affects 11.7 million adults annually in the U.S. Respiratory therapy helps manage respiratory conditions, like persistent cough, shortness of breath, wheezing, and pain or pressure in the chest.
By application, the orthopedic rehabilitation segment held the largest revenue share of approximately 37% in the market in 2024, due to the increasing prevalence of musculoskeletal disorders, such as arthritis, tendinitis, fibromyalgia, and herniated discs. The rising number of postmenopausal women leads to osteoarthritis complications. Osteoarthritis (OA) is estimated to affect approximately 7.6% of the global population. Orthopedic rehabilitation offers numerous benefits, such as promoting blood circulation, alleviating pain, preventing further injury, and improving memory.
By application, the neurological rehabilitation segment is expected to grow with the highest CAGR in the market during the studied years. Patients with injuries of the nervous system require neurological rehabilitation. The WHO reported that over 15 million people are living with spinal cord injury globally. The main aim of neurological rehabilitation is to return to the highest level of function and independence, improving physical, emotional, and social life.
By service delivery model, the outpatient rehabilitation centers segment contributed the biggest revenue share of approximately 39% in the market in 2024, due to the increasing number of employed individuals and the growing minor injuries caused by sedentary lifestyles. Several studies have demonstrated the correlation between abnormal spinal shapes and injuries. Outpatient services eliminate the need for a patient to stay overnight in a rehabilitation center, saving exorbitant healthcare costs.
By service delivery model, the homecare & tele-rehabilitation segment is expected to expand rapidly in the market in the coming years. The growing geriatric population and technological advancements augment the segment’s growth. Tele-rehabilitation allows patients to access experienced, skilled professionals from different geographical locations without visiting their healthcare organizations. The advent of wearable devices and sensors provides real-time monitoring data to providers.
By patient group, the adults segment accounted for the highest revenue share of approximately 44% in the market in 2024, due to the increasing incidence of occupational injuries and the need to enhance productivity. Rehabilitation helps adults regain, maintain, and improve physical, mental, and cognitive abilities lost due to injuries or illnesses. It enables adults to continue their daily tasks and improve their health and well-being.
By patient group, the geriatric population segment is expected to witness the fastest growth in the market over the forecast period. The geriatric population is more prone to developing chronic disorders and injuries. Rehabilitation helps preserve functional independence and improve the quality of life. It is estimated that 11% of older adults after hospitalization are referred to rehabilitation facilities. The shifting trend towards older adults living alone necessitates that they live independently.
By end-user, the hospitals & specialty clinics segment led the market with a share of approximately 48% in 2024, due to the presence of favorable infrastructure and affordable treatment. Hospitals & clinics have skilled professionals to provide multidisciplinary care to patients. They also have specialized equipment for treating a wide range of conditions. Patients prefer hospitals & specialty clinics as they receive reimbursement for their rehabilitation services.
By end-user, the homecare settings segment is expected to show the fastest growth over the forecast period. The geriatric population and employed people mostly prefer rehabilitation in home care settings. This eliminates the need to visit the hospital, saving travel time and cost. Healthcare professionals provide personalized treatment to patients. Patients receive rehabilitation in an appropriate ambience, resulting in faster recovery.
North America held a major revenue share of the market in 2024. The availability of a robust healthcare infrastructure, the presence of key players, and favorable government support are the major growth factors of the market in North America. Government and private bodies provide funding to develop innovative rehabilitation devices. They also provide reimbursement to patients, increasing accessibility and affordability.
Key players, such as the U.S. Physical Therapy, Inc., ATI Physical Therapy, and NovaCare, are the major contributors to the market in the U.S. According to a March 2024 poll of more than 1,000 Americans, approximately 51% people visited a physical therapist at some point in their lives. The U.S. is home to around 53,709 physical therapy rehabilitation centers.
Ontario Health atHome, CBI Health Group, and MS Canada are some organizations that provide rehabilitation therapy services. There are about 18,632 physical therapy rehabilitation centers in Canada. Various types of insurance plans are available for patients receiving physical therapy, such as employer-sponsored plans and private insurance options.
Asia-Pacific is expected to grow at the fastest CAGR in the rehabilitation therapy services market during the forecast period. The rising prevalence of chronic disorders, growing geriatric population, and sedentary lifestyles are the major causes of injuries & illnesses among people living in Asia-Pacific countries. The increasing awareness about rehabilitation and the rising disposable incomes propel the market. The growing adoption of advanced technologies and increasing collaborations among key players foster market growth.
The demand for rehabilitation services among the Chinese is burgeoning due to the rising geriatric population. The population of people over 60 years old is projected to reach 28% by 2040, accounting for 402 million people. As of 2023, there were 7,881 integrated medical and elderly care institutions in China, a 12.8% year-over-year growth.
According to the United Nations Population Fund (UNFPA), there were 153 million people aged 60 years and above in 2023, and it is projected to reach 347 million by 2050. A recent national survey also demonstrated that the overall prevalence of disability among Indians is 2.2%, with significant disparities across sociodemographic characteristics.
Our research highlights a staggering growth of the rehabilitation therapy services market, owing to the increasing geriatric population and the need for customized services. Consistent efforts lead to the development of innovative rehabilitation devices embedded with AI/ML and VR/AR, driving the future of tele-rehabilitation. According to our analysis, long-term partnerships between the United Nations’ agency (WHO) and government bodies of different nations result in a synergistic relationship, promoting rehabilitation therapy services.
By Therapy Type
By Application
By Service Delivery Model
By Patient Group
By End-User
By Region
October 2025
September 2025
September 2025
September 2025