> Healthcare Industry Insights - Global Perspective by ExpertsConsult
This article covers an expert’s insight and market trends of the healthcare industry. Healthcare industry is very vast and it is very difficult to define it concisely at one go.
How experts define healthcare industry?
Experts witness healthcare industry as the one of the world’s fastest and largest growing industry.The healthcare industry comprises of hospitals, pathology, diagnostics, medical tourism, diagnostics, telemedicine and among others. This industry provides goods and services to treat patients and support the healthcare needs of the society or an individual.
Key sectors experts consider in Healthcare Industry-
- Health care services and facilities
- Medical devices, equipment’s and hospital supplies manufacturers
- Pharmaceuticals & Related Segments
- Drug Manufacturing
- Managed Healthcare
- Healthcare services & facilities- This sector is broadly sub categorized into hospitals, nursing & residential facilities, ambulatory healthcare services and medical practitioners and healthcare professionals.
- Medical devices, equipment’s and hospital supplies manufacturers–This sector comprises of many players which includes in-vitro diagnostics, electro-medical and electro therapeutic apparatuses, dental equipment and supplies, medical devices manufacturing, medical laser machine manufacturing and others.
- Pharmaceuticals & Related Segments–This sector is involved in developing and marketing of drugs or pharmaceuticals licensed for use as medications. This even includes players of generic drugs, prescription drugs, pharmaceuticals packaging & labelling services, eye glasses, contact lens stores and among others.
- Drug Manufacturing- Drug manufacturers are classified into biotechnology firms, pharmaceutical firms and makers of generic drugs.
- Managed Healthcare- Companies involved in managed healthcare services provides healthcare insurance policies. Top players involved in this segment include UnitedHealth Group Inc., Anthem Inc., Aetna Inc. Humana Inc., and Cigna Corp.
- Biologics- This sector involved companies engaged in manufacturing biological products which are driven from genetically modified proteins and human genes.
Experts Insights on Market Dynamics of HealthCare Industry
Drivers- Increasing demand for quality healthcare services, increase in incidences of lifestyle diseases, rise in baby boomer population, demand for elderly home care system and emerging middle class population is driving the global healthcare industry.
Restraints- Low access to healthcare facilities in some countries, lack of insurance coverage, low wage growth in developing economies and unawareness of the advances happening creates a restraining factor for the growth of this industry.
Opportunities- Increase in adoption of bundled payment system, access to more and more medical benefits, healthcare insurance and huge government spending is foreseen to create an opportunity for the growth of healthcare industry. Rise in application of digital tools, adoption of shared medical appointments and cloud based electronic healthcare records is likely to create lucrative growth opportunities for the healthcare consultants this industry.
Challenges- Shortage of skilled healthcare professionals, frequent changes in consumer’sbehaviour and expectations and underinvestment in healthcare marketing are the few factors which would hinder the growth of this market.
A Closer look by experts on Healthcare Industry Trends 2018 and Beyond
Various healthcare industry experts and market research firms have identified varied technology trends and innovations happening in this industry. Healthcare consultants face various challenges in delivering the best possible services to their customers keeping the prices down.
The innovations listed by the healthcare experts are as follows:-
- Artificial Intelligence
- IoT and Smart Wearable
- Telemedicine-The remote delivery of healthcare services by using electronic information to communicate and provide healthcare services when the patient is at distant location. It provides access to the healthcare consultants to evaluate, diagnose and treat their patients with the help of video conferencing, smartphones and others. Requirement for the reduced healthcare costs coupled with growth in the number of elderly patients are primary factors driving the growth of telemedicine market. An expert survey showed that 77% of the consumers are highly show interest in telemedicine whereas 19% are already using it.Healthcare experts believe telemedicine is going to be game changers for the healthcare industry which will significantly grow reach a value of USD 41.2 billion by 2021. According to Statista, the total number of telemedicine patients worldwide was projected to be 7 million in 2018.
- Artificial Intelligence- Artificial intelligence is one of the major trends of healthcare industry during the forecasted years. Artificial intelligence in healthcare industry is majorly driven by the rising demand for precision medicine and affordable healthcare services.Industry experts have projected that an average of $54 million will be spent by 2020 by the healthcare companies on artificial intelligence projects. Artificial intelligence is foreseen to be the future of healthcare industry by the analysis of experts. Analysis and compilation of medical information, CT scans, and health monitoring and drug creation are the major applications of artificial intelligence in healthcare. Artificial intelligence is foreseen to transform any areas of application of healthcare industry including hospital workflow tasks to diagnosing health conditions of an individual. It enables the healthcare experts to provide accurate diagnostic, improve workflow productivity as well as provide customized services for fitness and health based an individual’s past heath records. According to a market research firm, it is anticipated that the artificial intelligence in healthcare industry to reach a value of USD 36.1billion by 2025.
- Robotics-Medical experts say that robots are changing the dynamics of healthcare industry. They can perform all tiny surgery and transform dangerous substances accurately. It monitors vital statistics of patients and alerts the nurses in case of their need in the patient’s room. In healthcare industry robots can be successfully utilized for orthopaedic, laparoscopic and neurosurgery procedures and amongst others. Healthcare consultants have analysed that the increase in automation technologies, technological advancements, rapid population growth and reduction in the overall mortality rates are driving the growth of robotics in healthcare industry. According to healthcare research experts, the global healthcare robotics market is estimated to grow at a CAGR of 22.3% during the forecasted years 2017-2025 and is anticipated to reach a value USD 28.7765 billion by 2025.
- IoT and Smart Wearable-Analyst say the tremendous increase in the public concern towards personal health and fitness are the IoT and smart wearable’s market. These devices also help us in addressing specific diseases such as asthma, pain management, heart issues and among others.This device even enables the pharmaceutical companies to expand their clinical trials and provides access to the patients to track their own health data. Rise in per capita healthcare spending among the middle class population is driving the demand of smart wearable devices in the market. According to Statista, it was projected that the healthcare wearables market will ship approx. 26,235 devices globally. Market research experts analysed that the market for healthcare wearables is anticipated to reach a value of USD 60 billion by 2023.
- Blockchain- Healthcare consultants view Blockchain as an opportunity to transform the healthcare industry by placing their patients at the heart of healthcare ecosystem, by increasing security, privacy and capability of health data. Blockchain enables to transfer files in clinical trials, patients data and pharmaceuticals history storage. Robomed Network is a Blockchain based medical network which aims at providing the most effective medical care. It helps to connect patients and healthcare experts by means of smart contracts. Industry experts believe that the adoption of Blockchain technology can enable the healthcare industry to save up to $100-150 billion per year by 2025 for data breach related costs, IT costs, operation costs, personnel costs and among others. According healthcare research experts, the Blockchain in healthcare industry is anticipated to hit a value of USD 56.1 billion by 2025.
An Insight on the top companies of Healthcare Industry
The top companies of healthcare industry includes Medtronic Plc., Abbott Laboratories, United Health Group In., Cigna, McKesson, CVS Health, Stryker, Cardinal health, AmerisourceBergen, Humana and among others.
Industry experts analysed that healthcare services & facilities sector was the largest growing segment in 2018 registering a market share of 82.4% in the global healthcare industry. The healthcare industry is considered to be one of the largest and fastest growing industries in the world owing to adoption of popular digital technologies which includes Artificial Intelligence, Internet of Medical Things, Big Data Analytics, Robotics, Telemedicine, Cloud Computing and amongst others. The global healthcare industry is expected to reach a value of USD 11801 billion by 2021. The baby boomer population contributes the maximum market share in the growth of global healthcare industry. This industry contributed a stable growth of 4.82% in 2018. North America was the fastest growing region with the highest market share in 2018. According to Statista. North America region accounted a value of USD 714.5 billion in 2018. Europe registered a market value of USD 422 billion in 2018, Asia Pacific region reached a value of USD 516.8 billion in 2018, and LatinAmerica region reached a value of 137.1 billion in 2018 whereas Rest of the World generated USD 63.4 billion in 2018.
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