Updated on 29 November 2016
Singapore: Research firm Frost & Sullivan has recently said that Asia is all set to replace Europe as the second-largest healthcare market in the world by 2025. The new analysis, "Vision 2025 - Future of Healthcare," which is part of Frost & Sullivan's Advanced Medical Technologies Growth Partnership Service program, sees the global healthcare industry growing at a compound annual growth rate (CAGR) of 5.6 percent to reach revenue of $2.69 trillion by 2025.
The report states that though North America is the largest healthcare market in the world today, it may only retain this lead until 2028. With growth in healthcare expenditure as a percent of GDP set to be higher than North America and Europe, Asia is poised to take the lead. The analyst firm also predicts that by 2025, Latin America is set also forecast to overtake Japan to become the fourth-largest healthcare market globally.
Meanwhile, aging populations worldwide are challenging and will continue to challenge existing healthcare systems financially and require improved healthcare outcomes. Frost & Sullivan expects this to 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.
"With an 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," noted Frost & Sullivan Transformational Health Research Analyst Mr 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," Mr Shah added.