Analysis made by consulting firm Frost and Sullivan has predicted the expected growth to be made in the healthcare sector.
The firm’s Vision 2025 – Future of Healthcare report examines the changes in the global healthcare market, which will be worth $2.69 trillion in 2025.
The firm predicts that global healthcare will be affected by a change in regional dynamics, with regions such as Asia and Latin America due to grow by large amounts.
Asia in particular is expected to overtake Europe in terms of market size and is currently growing at 11.7%. By 2025, regional shares in the healthcare market are expected to be arranged from largest to smallest to North America, Asia, Europe, Latin America, Japan and rest-of-world.
Siddharth Shah, Frost & Sullivan transformation health research analyst said: “Healthcare stakeholders will have to change their investment focus to target Asia, which holds the potential to become the largest healthcare market in the world if current growth rates hold. Latin America also promises significant opportunities due to the rising population, high demand, and growing middle class with disposable incomes.”
With countires such as Greece, Portugal and Spain being affected by the declining Euro, and the UK tackling Brexit and the decline of the pound, Europe’s position in the healthcare market is expected to drop, despite the inclusion of a few lucrative country markets such as Germany and Sweden.
Healthcare companies in Asia and Latin America also have difficulties. Cultural diversity, language heterogeneity and affordability levels all present difficulties. More so, successful business strategies in North America and Europe will not be applicable for emerging regions.
“Despite the difficulties, Asia and Latin America cannot be overlooked if companies desire to grow faster than their competition.” Shah said. “To gain the edge, healthcare players must take the plunge, invest in these regions, find the right local partners, design custom strategies for each country, test them in pilots, and go large-scale.”