The surrogacy market has emerged as one of the fastest-growing sectors in the healthcare industry, primarily driven by rising infertility rates, advancements in reproductive technology, and evolving societal norms regarding family building. Valued at USD 81.5 billion in 2023, the market is expected to reach USD 577.8 billion by 2032, with a CAGR of 24.3% during the forecast period of 2024-2032.
This in-depth blog explores the dynamics fueling this growth, key trends, major players, and challenges, while looking ahead at the future prospects for the surrogacy market.
Market Overview: What is Driving Surrogacy Growth?
The global surrogacy market is experiencing rapid growth due to several converging factors, including:
- Rising Infertility Rates: Fertility issues are becoming increasingly common, with over 15% of couples worldwide experiencing infertility. Contributing factors include delayed childbearing due to career priorities, lifestyle changes, and health conditions such as polycystic ovarian syndrome (PCOS) and endometriosis. Additionally, the increase in male infertility due to lifestyle factors and environmental toxins is further boosting demand for assisted reproduction.
- Technological Breakthroughs in Assisted Reproductive Technologies (ART): Over the last decade, significant advancements have been made in IVF, genetic testing, and cryopreservation. These technologies are increasing the success rates of surrogacy, making it a viable option for more families. Techniques like Preimplantation Genetic Testing (PGT) ensure the selection of healthy embryos, while IVF offers higher success rates through innovations like time-lapse imaging for better embryo monitoring.
- Expanding Societal Acceptance: As societal views on surrogacy have evolved, surrogacy is no longer viewed as a taboo in many regions. An increasing number of LGBTQ+ couples, single parents, and infertile couples are turning to surrogacy to build their families. In the United States, same-sex couples are among the largest segments driving the surrogacy market.
- Improved Legal Frameworks: Countries like the United States, Canada, and parts of Europe have developed more structured legal frameworks for surrogacy, offering legal protections to intended parents, surrogate mothers, and children. However, in other countries, surrogacy regulations remain inconsistent, creating challenges for cross-border surrogacy.
Key Market Trends
The surrogacy market is being shaped by several important trends that are expected to influence its future growth trajectory:
- International Surrogacy and Medical Tourism: Surrogacy as part of medical tourism is growing rapidly. India, Thailand, and Ukraine were once key destinations for international surrogacy due to lower costs and favorable laws. However, recent legal restrictions have shifted demand to countries like Mexico, Georgia, and certain parts of the United States, where surrogacy is both legal and regulated.Medical tourism is largely driven by cost discrepancies; for example, in the United States, surrogacy can cost anywhere between USD 100,000 to USD 150,000, whereas countries like Mexico offer the same services at significantly lower prices, attracting international clients.
- Advancements in Genetic and Embryonic Technologies: With the rise of technologies like CRISPR and Preimplantation Genetic Diagnosis (PGD), intended parents can now ensure that their embryos are free from genetic diseases before they are implanted in the surrogate. This has significantly improved the success rates of surrogacy while reducing health risks for both the surrogate and the child.Additionally, the use of time-lapse imaging and artificial intelligence in IVF clinics has improved embryo selection, leading to higher pregnancy success rates. AI is helping fertility specialists by analyzing data to recommend personalized treatment options for couples, leading to more precise and effective fertility treatments.
- Legalization and Regulation of Surrogacy: Many countries are reconsidering and updating their legal frameworks to address surrogacy. For example, India, once a hub for surrogacy, has introduced strict regulations, restricting surrogacy to altruistic cases (where the surrogate does not receive payment beyond medical expenses). As a result, India has seen a decline in international surrogacy.However, countries like Canada and several U.S. states offer comprehensive legal protections that make them preferred destinations for intended parents who want to ensure legal security throughout the process.
- Growing Use of Gestational Surrogacy: Gestational surrogacy, where the surrogate carries a child with no genetic relation to her, has become the most popular form of surrogacy due to its legal clarity. Countries such as the United States and Canada offer clear legal frameworks for gestational surrogacy, ensuring the rights of both the surrogate and the intended parents are protected. This has made gestational surrogacy the preferred choice for most parents.
Key Players and Competitive Landscape
Several key players dominate the surrogacy market, with services ranging from IVF treatment, surrogacy arrangements, legal support, and genetic testing. A recent merger in April 2023 between US Fertility and Ovation Fertility has created a large-scale platform providing fertility-focused management and services to multiple clinics across the United States. This partnership will accelerate innovation in the sector, improve patient care, and drive operational efficiencies.
Other prominent market players include:
- New Hope Fertility Clinic: Known for cutting-edge IVF treatments and high success rates.
- Ovation Fertility: A leader in reproductive endocrinology, recently expanding its operations to include surrogacy.
- Houston Fertility Center: Offering comprehensive fertility treatments and surrogacy services.
- CARE Fertility: Specializing in surrogacy and IVF treatments, with branches across Europe.
- IVI RMA Global: A major player in the global fertility market, with clinics in Europe, the United States, and Latin America.
Challenges Facing the Surrogacy Market
While the surrogacy market is growing, it faces several challenges:
- Legal Complexities: Legal restrictions and varying regulatory frameworks across countries make international surrogacy a legally complex and costly endeavor. Some nations like France and Germany have banned surrogacy altogether, forcing intended parents to seek surrogacy services abroad.
- Ethical Debates: The commercial aspect of surrogacy, where women are compensated for carrying a child, raises ethical concerns about exploitation. The rights and emotional well-being of the surrogate mothers, as well as the commercialization of human reproduction, remain subjects of debate in many countries.
- High Costs: Surrogacy is an expensive option, particularly in developed nations like the United States and Canada, where costs can reach upwards of USD 150,000. This price tag often excludes many intended parents from using surrogacy as an option, particularly those without access to insurance coverage or significant financial resources.
Future Outlook: What to Expect by 2032
The surrogacy market is poised for exponential growth over the next decade, with key trends shaping its future:
- Technological Innovations in IVF and Genetic Screening: The integration of AI, machine learning, and advancements in genetic testing will continue to increase IVF success rates and ensure healthier pregnancies. As technology improves, surrogacy is expected to become even safer and more effective.
- Geographic Expansion: As countries like India and Thailand restrict commercial surrogacy, other regions like Eastern Europe, Latin America, and the Middle East are expected to see significant growth as they emerge as new hubs for international surrogacy. Mexico, in particular, is rapidly growing as a medical tourism destination for affordable surrogacy options.
- Increased Access for Same-Sex Couples: Legal reforms supporting the rights of LGBTQ+ individuals to have children through surrogacy will drive further demand, particularly in regions like North America and Western Europe, where legal protections for same-sex parents are stronger.
- Rise of Altruistic Surrogacy: As more countries ban commercial surrogacy, altruistic surrogacy, where the surrogate is not compensated beyond medical expenses, will become more common. This shift may reduce the overall costs associated with surrogacy and increase access for intended parents.
