Asia to replace Europe as second-largest health market, finds Frost & Sullivan's Transformational Health team
SANTA CLARA, California, Nov. 23, 2016 /PRNewswire/ -- By 2025, the healthcare ecosystem is expected to look drastically different from today. Growing at a CAGR of 5.6 percent, the global healthcare industry is likely to reach revenue of $2.69 trillion by 2025. However, the regions and sectors generating this revenue will change significantly:
- While currently Europe is the second-largest healthcare market in the world, Asia is set to replace it by 2025. North America should be the largest healthcare market until about 2028, when Asia will probably become the largest market.
- Asia-Pacific's growth in healthcare expenditure (as % of GDP) is set to be higher than that of North America and Europe, supporting the market's high growth.
- By 2025, Latin America is set to overtake Japan to become the fourth-largest healthcare market globally.
- Aging populations worldwide will challenge existing healthcare systems financially and require improved healthcare outcomes. This will cause a shift towards value-based care and require national policies to change dramatically.
- The rise of consumerization as well will lead to patient-centric healthcare.
- Technological advances will unlock values and previously inaccessible segments. Among others, brain-computer interfaces, digital avatars, wearables and precision medicine will emerge as leading technologies.
- The healthcare IT sector will experience the fastest growth in the industry, growing at a phenomenal rate of 16.1 percent until 2025.
The new analysis, Vision 2025 - Future of Healthcare, which is part of Frost & Sullivan's Advanced Medical Technologies Growth Partnership Service program, explores how the healthcare landscape is expected to evolve. It also identifies 18 technologies impacting the industry heavily, highlights the key areas of growth within each sector, and focuses on challenges that different regions will experience in achieving better healthcare futures.
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"With aging population and increasing chronic disease prevalence, the focus on prevention and monitoring will be enforced. This is reflected in rising shares of healthcare expenditure for prevention, monitoring and diagnosis, while the share for treatment will decline," notes Frost & Sullivan Transformational Health Research Analyst Siddharth Shah. "Emerging technological advances to help alleviate the situation will enable several new billion-dollar opportunities to arise in all sectors. The combined effect of transformational shifts and new opportunities will facilitate the emergence of new business models in the industry."
Frost & Sullivan will present weekly updates on key findings within this analysis. Focus areas will include: the future of healthcare by sector, the future of healthcare by region and the top 18 technologies shaping the industry until 2025. Stay updated and view the newest insights here: http://frost.ly/11r or follow us on @FS_Healthcare.
Vision 2025- Future of Healthcare
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