November 14, 2016 | 14:00 | Dubai
By 2025, the healthcare ecosystem is expected to look drastically different from today, as per an analysis by Frost & Sullivan’s Transformational Health team. Growing at a CAGR of 5.6 percent, the global healthcare industry is likely to reach revenue of USD 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.