Healthcare Market Research
The healthcare or the medical industry consists of companies that manufacture drugs, provide clinical services, and assemble medical equipment. These companies also offer healthcare-related services and support including medical insurance. The health services research companies play an essential role to identify, treat, and manage diseases, illnesses, injuries, etc. The healthcare industry also provides remedial, preventive, and therapeutic services to patients. This business employs many people, ranging from doctors to medical device manufacturers.
The healthcare industry is one of the largest sectors and is expected to continue to grow driven by several components. Technological innovation and smart healthcare data management are among the top factors responsible for the growth of this sector. Additionally, integration of medicine and healthcare along with a consumer-centered restructure will act as key drivers. This growth will be inevitable once technological advancements are embraced in every domain of the healthcare sector. Incorporating technology throughout the industry will require massive investments for cognitive computing, big data, electronic patient records, etc. A digitalized healthcare system will lead to better diagnostics, reduce operational costs as well as improve the quality of care.
Amid this digital transformation is the need for cost-effective and innovative methods to deliver patient-centered and technology-enabled healthcare services. Innovation will play a key role in the manufacture and design of medical equipment, products, and services. Technological innovation can play an important role in stimulating operational efficiency. Modernization can help connect and coordinate the operations of all healthcare workers in their different areas of expertise. Integration of medicine and healthcare will provide a holistic approach to the healthcare industry. The integration will create a collaborative framework that will promote the incorporation of skills and competencies across pharmaceuticals, equipment manufacturers, and healthcare providers.
Data analysis can help healthcare providers in deploying innovative care delivery for the customer and wellness models based on the metrics derived from the data. Technology can also help them to monitor and ascertain the effectiveness of certain medications on an individual or the entire patient population.
Key segments in the healthcare industry
Health market research suggested that there are mainly 3 segments in this sector, namely healthcare providers, healthcare finances, and life sciences. The healthcare providers include hospitals and other medical centers. These organizations conduct diagnosis, offer treatment and training. Hospitals are well equipped with necessary medical equipment for minor and major surgical procedures as per the assessment. Rehabilitation centers, as well as nursing homes, offer short and long-term care services. Ambulatory services providers are also a part of healthcare providers. These are physicians and other health professionals who provide non-hospital-based or outpatient medical services.
Healthcare financers are government and private agencies that provide health insurance policies and fund healthcare services. Life sciences on the other hand include pharmaceutical firms. The organization is involved in the production of drugs and other chemical products required for the provision of healthcare. This segment of the healthcare industry also includes the manufacturers of high-tech medical equipment and biotechnology firms. These biotechnology firms conduct research and development to create new drugs, equipment, and treatment methods.
Impact of the healthcare industry on the economy
The healthcare industry has great importance to people all around the world as well as to the national economies. This is one of the fastest-growing industries in the world. The success of a nation is often measured by the advancements in its healthcare sector. The global healthcare market reached a value of USD 8.45 trillion in the year 2018. The health care sector consumes around 10% of the gross domestic product of most developed countries. A clear correlation exists between income levels and the expenditure on healthcare in various countries. Some of the large developing economies including India, Brazil, Russia and China spend less on health care than more industrialized economies like the United States and France.
The healthcare sector also plays an important role as being the largest employer in the global economy. The employment growth rate of the health industry is higher than that of other industries in most countries. However, the current healthcare industry is highly fragmented and divided among different key players and companies. No single firm has enough share of the market to be able to influence the industry’s direction or price levels.
Impact of COVID-19 on the healthcare sector
The coronavirus that caused the COVID-19 disease released a catastrophe of unprecedented magnitudes. The healthcare sector has borne the impact of COVID-19 more than any other industry. The healthcare segments across nations are struggling to cope with the massive imbalance in demand and supply. The global medical supply chains are in a weak state. The manufacturing plants have shut down leading to a shortage of testing kits, drugs, and other essential products. Pharmaceutical companies are constantly looking for solutions that mitigate and prevent recurrences of the COVID-19 outbreak.
Governments and healthcare firms need to develop a strategy to reprioritize long-term healthcare plans at an international level. The post-COVID-19 times is likely to witness the healthcare sector adopt new concepts like remote care, telehealth, and other types of digital healthcare solutions.
North America Healthcare Industry
The healthcare industry in North America was valued at USD 96.3 billion in the year 2019. This sector in the region is expected to grow at a CAGR of 16.4% and reach USD 239.9 billion by 2025. The major drivers for the market growth are the regulatory guidelines and the rising need to curtail the increasing healthcare costs. High return on investment and government initiatives are also likely to contribute to the growth of the healthcare sector.
The healthcare providers segment accounted for the largest share of the North American medical care sector in 2019. The need to improve the efficiency of healthcare services by reducing medical errors is increasing. This is one of the major factors that boost the demand for healthcare provider solutions. The non-clinical solution segment accounted for the largest share in the industry based on product type in the year 2019. The demand for non-clinical solutions has witnessed a rise over the past few decades.
The healthcare market research sector by country is segmented into Canada, the US, and Mexico. The United States accounted for the largest share of the North American health and wellness market research sector in 2018. This is accredited to the stringent legislative and regulatory requirements.
Europe Healthcare industry
Healthcare market research findings showed that Europe dominates the healthcare industry. Italy and Germany hold most shares due to the existence of well-established infrastructure. This is a growth-imparting driver for the health and wellness care sector. The increasing number of private medical care service providers in the region also contributes to the growth of the healthcare sector. According to healthcare market analysis, Europe exports a large proportion of the chemicals it produces. In 2019, more than one-third of the exports by this region were in the healthcare sector. Germany has more than 500 healthcare market research companies. The German healthcare sector generated total sales of around USD 41 billion in 2019.
Health services research indicated that this sector accounted for nearly 1.8% of Europe’s total manufacturing workforce in 2012. The medical care sector was worth nearly USD 290 billion during the same year. Presently, the health and medical care sector is extensively regulated at the European Union to protect public health.
Healthcare research states that all medicinal products for human use must be approved at either the national or EU level before entering the market. The European Union has established the European Medicines Agency to coordinate the scientific evaluation of the safety, quality, and efficacy of medicinal products undergoing an authorization process.
Middle East Healthcare industry
The Middle East is witnessing a prosperous growth in healthcare opportunities. Health and wellness market research stated that the healthcare expenditure in UAE is expected to reach USD 21.3 billion by 2021. The health and medical care industry is expected to grow at a compound annual growth rate of 8.5% between 2018 and 2023.
A range of factors drives the growth in this sector including lengthening life expectancies, aging populations, etc. An emphasis on prevention and well-being rather than on only treatment is leading to opportunities for new models of care and out-of-hospital services. Saudi Arabia, for example, has embarked on a program to build a new healthcare system incorporating primary, community as well as secondary care.
At the same time, the demand for technologies including digital health, artificial intelligence, and robotics is increasing to provide a wide range of innovations. The major cause for the shift is due to workforce issues including a shortage of skilled clinical staff. The market for medical technologies in this region is expected to reach a value of USD 31 billion by 2025.
Rest of the World Healthcare Industry
The healthcare expenditure for the APAC nations was valued at nearly USD 230 billion in 2016. Health services research indicated that China accounted for the second-largest health expenditure revenue of USD 85 billion during the same year. A sharp economic rise in the APAC region comes with benefits and challenges for the healthcare sector. Patients in rural and urban areas continue to face affordability and accessibility issues. Technological innovation is resolving the issues with digital enablement and providing training for medical personnel.
The healthcare expenditure of Indonesia was valued at USD 27 billion in the year 2016. This expenditure is projected to grow at a CAGR of 7.5% by 2030. Singapore has the world’s fourth-best healthcare infrastructure. Health market research indicated that Singapore involves less than 5% of GDP spending on the healthcare industry. The African healthcare sector was worth USD 35 billion in the year 2016. Health care market analysis showed that this sector is expected to grow at a CAGR of 6% during 2017-2030. Several emerging private healthcare market research companies contribute to the growth of this sector in Africa. However, various challenges including medical products, technologies, etc. hinder the progress of the African healthcare industry.