Occupational Health Market Size, Share, Growth by 2030

The occupational health sector was valued at approximately US$ 4,565.46 million in 2022 and is projected to grow to around US$ 5,943.40 million by 2030, reflecting an estimated compound annual growth rate (CAGR) of 3.4% from 2022 to 2030.

A significant driver of growth in the occupational health market is the increasing emphasis on employer-sponsored health insurance and a rise in the implementation of workplace wellness initiatives. Conversely, various health-related risks present in work environments pose challenges to the expansion of the occupational health market.

Implementation of Workplace Health Models Presents Growth Opportunities

As highlighted by the CDC, workplace health models play a crucial role in fostering a physically and mentally healthy work environment while facilitating disease prevention initiatives. In the United States, full-time employees spend over one-third of their day, five days a week, at their jobs. By adopting effective workplace health models, employers can create safer and healthier environments for more than 159 million workers in the country. Furthermore, these models can enhance the quality of life for employees by mitigating health risks. A healthier workforce can also lead to reduced direct expenses, such as lower insurance premiums and fewer compensation claims. In Europe, the European Network for Workplace Health Promotion oversees the implementation of workplace health models, resulting in 72% of employers adopting health programs that emphasize physical activity, nutrition, and stress management. Full-time workers in the European Union typically work an average of 37.1 hours per week, with Belgian employees averaging 39.1 hours, while self-employed individuals may work up to 52.8 hours. Given the substantial time spent in workplaces, there is a pressing need for health models that cater to diverse population segments not currently engaged in public health initiatives and campaigns.

Health-Related Risks at Workplaces Impede Occupational Health Market Growth

According to a report from the World Health Organization (WHO), individuals in the workforce spend about one-third of their time at work, making employment conditions significantly influential on health equity. Various health risks in workplaces, including exposure to heat, noise, dust, chemicals, unsafe machinery, and psychological stress, can exacerbate health issues. Employees facing high stress or unstable job conditions may develop unhealthy habits, such as smoking and poor dietary choices, leading to a sedentary lifestyle. Common occupational diseases include chronic respiratory issues, musculoskeletal disorders, noise-induced hearing loss, and skin conditions. The CDC reports that preventable chronic illnesses substantially contribute to rising health insurance costs and employee medical claims, which are expected to continue increasing. Conditions such as angina, hypertension, diabetes, and heart attacks, often linked to heightened work stress, rank among the most costly health issues for employers globally, surpassing concerns like physical inactivity and obesity. Chronic health issues and unhealthy lifestyle choices further diminish worker productivity. For instance, risk factors associated with chronic diseases, including high blood pressure, diabetes, smoking, and obesity, lead to significant employee absenteeism, costing US employers approximately US$ 36.4 billion annually.

Moreover, stress-related health issues result in considerable loss of life and financial burden for companies, yet the United States has made limited progress in addressing these risks. Factors such as long working hours, shift work, lack of job control, and excessive demands contribute to unhealthy behaviors among employees. The annual healthcare expenditure related to work-induced stress is around US$ 190 billion, accounting for 8% of the nation's total healthcare costs. Consequently, the prevalence of health risks in the workplace constrains the growth of the occupational health market.

Insights Based on Offerings

The occupational health market is categorized by offerings into products, solutions like data management, and services. The services segment dominated the market in 2022 and is expected to experience the highest CAGR during the forecast period.

Insights Based on Categories

The market is also segmented by categories, including physical and environmental factors, chemicals, safety, ergonomics, vaccinations, biological factors, and others. The physical and environmental category held the largest market share in 2022, while the ergonomic segment is projected to achieve a higher CAGR in the coming years.

Insights Based on Employee Types

In terms of employee types, the market is divided into remote, hybrid, and on-site workers. The remote segment accounted for the largest market share in 2022 and is anticipated to show the highest CAGR during the forecast period.

Insights Based on Site Locations

The occupational health market is segmented by site location into on-site, off-site, and shared site categories. The off-site segment held the largest market share in 2022 and is expected to register the highest CAGR in the future.

Insights Based on Types

The market is further divided into physical wellbeing and social and mental wellbeing. The physical wellbeing segment had a larger market share in 2022, while the social and mental wellbeing segment is expected to see a higher CAGR in the forecast period.

Insights Based on Industries

The occupational health market is categorized by industries, including automotive, chemical, engineering, government, manufacturing, mining, oil and gas, pharmaceuticals, ports, and others. The government sector held the largest market share in 2022, while the oil and gas industry is projected to experience the highest CAGR during the forecast period.

Key sources referenced in the preparation of this report on the occupational health market include the World Health Organization (WHO), Centers for Disease Control and Prevention (CDC), National Home Infusion Association (NHIA), International Diabetes Federation (IDF), International Agency for Research on Cancer (IARC), and National Cancer Registry (NCR).