Corporate Wellness Market - Increase In Penetration of Corporate Wellness Services
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North America and Europe are expected to dominate the global corporate wellness market, in terms of revenue, during the forecast period. Factors such as high health care expenditure and availability of a wide range of providers of corporate wellness services boost the corporate wellness market in these regions. The market in North America is expected to register the highest growth rate of more than 11% during the forecast period. The corporate wellness market in Asia Pacific is expected to register the second-highest growth rate of more than 9% during the forecast period. The corporate wellness markets in Latin America and Middle East & Africa are likely to expand at a sluggish growth rate during the forecast period.
Government support for corporate wellness programs has increased along with rise in health concerns among people with chronic conditions such as obesity and diabetes. A federal legislation has also sought to cut escalating health care costs. A provision in the 1996 HIPAA (Health Insurance Portability & Accountability Act) offers employers to reduce the cost of health insurance premiums for employees practicing health-promoting activities. The provision has provided up to 20.0% of reduction in the employees’ regular premium cost. White-collar employees include managers, government employees, professionals, and salespersons.
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The number of service sector employees is expected to increase in the next few years. This is likely to drive the global corporate wellness market during the forecast period. The number of industry operators is expected to increase at a rate of 3.2% per annum to reach 549 operators from 2016 to 2020. This, in turn, is projected to increase the number of white-collar employees in the near future, for whom companies would be taking up corporate wellness programs.
The health risk assessment segment accounted for a major market share in 2017. It is likely to dominate the global corporate wellness market during the forecast period, due to rise in awareness among employers, increase in the incidence of chronic diseases, and surge in the spending on health care. Fitness is projected to be the second-most lucrative service segment by the end of the forecast period, due to rise in the incidence of chronic diseases in a majority of developed and developing countries such as the U.S., China, Japan, Germany, and Australia.
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