Healthcare Market Characteristics
The healthcare market consists of sales of healthcare services and related goods by entities (organizations, sole traders and partnerships) that provide human healthcare services, or that provide veterinary healthcare service to pets, farm animals and animals kept in zoos and wildlife parks, or that manufacture and sell pharmaceutical drugs used to treat diseases, or that manufacture biologics to treat and prevent microbial diseases and cancer, or that manufacture medical equipment which are used in the diagnosis, treatment and monitoring of medical conditions.
This market excludes the sales of alternative therapies and natural remedies such as homeopathy, Ayurveda, yoga, acupuncture and sujok therapy.
Healthcare Market Size
The global market for healthcare reached a value of nearly $8452.0 billion in 2018, having grown at a compound annual growth rate (CAGR) of 7.31% since 2014, and is expected to grow at a CAGR of 8.95% to nearly $11908.9 billion by 2022.
Growth in the historic period resulted from rapid growth in elderly population, strong economic growth in emerging markets, declining oil prices and health insurance reforms.
Going forward, faster economic growth, technological developments and rise in busy and sedentary lifestyle will drive the growth. Factors that negatively affected growth in the historic period were low healthcare access, shortage of skilled man power, difficulty in manufacturing biologics and government regulations. Factors that could hinder the growth of this market in the future are rise in interest rates, increasing awareness of alternative therapies and natural remedies, federal/state government provisions in healthcare services and government regulations.
Healthcare Market Drivers
The Key drivers of the healthcare market include:
Rapid Growth In Elderly Populations – The aging population profile of most countries contributed to the growth of the healthcare services market. During the historic period, there was an increase of 33% of aged population, according to estimates based on Population Reference Bureau data. In 2017, number of people over the age of 60 were 962 million comprising 13% of the global population. The rising prevalence of diseases in old age drove the healthcare services market during this period and is expected to continue over the forecast period. The increase in the aging population has increased the patient pool of many chronic diseases such as rheumatoid arthritis, hypertension, diabetes and cancer. For example, in the US, there were about 11.2 million diabetic patients in the 65+ age group. This has led to increased demand for healthcare services, significantly impacting market growth during this period.
Healthcare Market Restraints
The key restraints on the healthcare market include:
Low Healthcare Access – Healthcare access was relatively poor in most developing countries, compared to the developed nations. Globally, the disease burden is significantly high in low- and middle-income countries. The low access to healthcare services and insufficient number of hospitals and healthcare professionals had a negative impact on the market growth in many developing nations. For example, in India, there were only about 0.5 hospital beds per 1000 people in 2014 .Hence, low access to healthcare facilities was a major restraint on the healthcare services market.
Healthcare Market Trends
Major trends influencing the healthcare market include:
Faster Economic Growth – The healthcare market growth is aided by stable economic growth forecasted in many developed and developing countries. The International Monetary Fund (IMF) predicts that the global real GDP growth will be 3.7% over 2019 and 2020, and 3.6% from 2021 to 2023. Recovering commodity prices, after a significant decline in the historic period are further expected to aid the market growth. Developed economies are also expected to register stable growth during the forecast period. Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets in the forecast period. For instance, India’s GDP is expected to grow at 7.3%, whereas China is forecasted to register GDP growth of 6.2% in 2019. Stable economic growth is expected to increase disposable incomes, driving the demand for healthcare.
Technological Developments – Technology is expected to be a continued driver of market growth during this period. Areas of particular development are robotics, artificial intelligence, internet of health things (IoHT) and minimal invasive surgery technologies. For example, daVinci’s surgical system robot transcends limitations to laparoscopic surgery to treat conditions such as obesity, heart disease and prostate cancer. In 2017, 35% of healthcare organizations planned to leverage artificial intelligence in the next two to five years. In 2014, according to a survey conducted by Accenture, 49% of service providers opt IoHT for remote patient monitoring (RPM), wellness and prevention. The healthcare market will benefit from the greater efficiencies offered by these technologies.
Opportunities And Recommendations In The Healthcare Market
Opportunities – The top opportunities in the global healthcare market will arise in the healthcare services segment which will gain $2,873.6 billion of global annual sales by 2022. The global healthcare market for female end-users will offer most opportunities as it will gain $1,807.8 billion of global annual sales by 2022. The healthcare market size will gain the most in the USA at $808.0 billion. Market-trend-based strategies for the healthcare market include increasing the adoption of bundled payments, using digital tools, increasing collaborations across industries and companies, focusing on the development of new medicines, and adopting hybrid imaging technology. Players adopted strategies in the healthcare industry include acquiring companies in similar industries to expand their presence and focusing on offering quality products and services.
Recommendations – To take advantage of these opportunities, The Business Research Company recommends the healthcare companies to collaborate across verticals and industries to provide value-based healthcare, focus on the development of new medicines, adopt cloud-based electronic health records, and expand in in emerging markets, among other strategies.
Healthcare Market Segmentation
The healthcare market is segmented by type and by geography.
By Type -
The healthcare market can be segmented by type into
- a) Healthcare Services
- b) Pharmaceutical Drugs
- c) Medical Equipment
- d) Biologics
- e) Veterinary Healthcare
Healthcare services was the largest segment of the healthcare market, accounting for 79.4% of the total in 2018. Going forward, the fastest growing segments in the healthcare market will be biologics and veterinary healthcare, where growth will be at CAGRs of 13.6% and 10.9% respectively.
By Type Of Healthcare Services -
The healthcare services market can be segmented by type into
- a) Medical And Diagnostic Laboratory Services
- b) Medical Laboratory Services
- c) Diagnostic Imaging Centers
- d) Dental Services
- e) Nursing Care
- f) Hospitals And Clinics
- g) Physicians And Other Health Practitioners
- h) All Other Ambulatory Health Care Services
By Type Of Dental Services -
The healthcare services market can be segmented by type of dental services into
- a) General Dentistry
- b) Oral Surgery
- c) Orthodontics And Prosthodontics
By Type Of Nursing Care -
The healthcare services market can be segmented by type of nursing care into
- a) Home Health Care Providers
- b) Nursing Care Facilities
- c) Group Care Homes
- d) Retirement Communities
By Type Of Residential Substance Abuse And Mental Health Facilities -
The healthcare services market can be segmented by type of residential substance abuse and mental health facilities into
- a) Residential Mental Health & Intellectual Disability Facilities
- b) Substance Abuse Centers
By Type Of Hospitals And Clinics -
The healthcare services market can be segmented by type of hospitals and clinics into
By Type Of Physicians And Other Health Practitioners -
The healthcare services market can be segmented by type of physicians and other health practitioners into
- a) Specialist Doctors
- b) Primary Care Doctors
- c) Physical Therapists
- d) Optometrists
- e) Chiropractors
- f) Podiatrists
By Type of Pharmaceutical Drugs -
The pharmaceutical drugs market can be segmented by type into
- a) Cardiovascular Drugs
- b) Dermatology Drugs
- c) Gastrointestinal Drugs
- d) Genito-Urinary Drugs
- e) Hematology Drugs
- f) Anti-Infective Drugs
- g) Metabolic Disorders Drugs
- h) Musculoskeletal Disorders Drugs
- i) Central Nervous System Drugs
- j) Oncology Drugs
- k) Ophthalmology Drugs
- l) Respiratory Diseases Drugs
By Type of Oncology Drugs -
The pharmaceutical drugs market can be segmented by type of oncology drugs into
- a) Lung Cancer Drugs
- b) Pancreatic Cancer Drugs
- c) Breast Cancer Drugs
- d) Prostate Cancer Drugs
- e) Ovarian Cancer Drugs
- f) Colorectal Cancer Drugs
- g) Gastric Cancer Drugs
- h) Non-Small Cell Lung Cancer Drugs
- i) Kidney Cancer Drugs
- j) Brain Tumor Drugs
- k) Thyroid Cancer Drugs
- l) Skin Cancer Drugs
- m) Bladder Cancer Drugs
- n) Cervical Cancer Drugs
- o) Blood Cancer Drugs
- p) Others (Kaposi Sarcoma, AIDS-Related Lymphoma, Anal Cancer, Bone Cancer, Retinoblastoma, Testicular Cancer, Hepatocellular (Liver) Cancer, Mouth Cancer, Neuroblastoma)
By Type of Treatment -
The oncology drugs market can be segmented by type of treatment into
- a) Chemotherapy Drugs
- b) Immunotherapy Or Biologic Therapy Or Biotherapy Drugs
- c) Targeted Therapy Drugs
- d) Hormone Therapy
- e) Stem Cell Transplants
By Type of Cardiovascular Drugs -
The pharmaceutical drugs market can be segmented by type of cardiovascular drugs into
- a) Anti-Hypertensive Drugs
- b) Hypolipidemics
- c) Anti Thrombotics
- d) Other Drugs For Cardiovascular Diseases (Congestive Heart Failure, Anti-Arrhythmic And Anti-Anginal Drugs)
By Type of Central Nervous System Drugs -
The pharmaceutical drugs market can be segmented by type of central nervous system drugs into
- a) Nervous System Drugs
- b) Analgesics
- c) Anti-Parkinson Drugs
- d) Anesthetics
- e) Anti-Epileptics
- f) Other CNS Drugs
By Type of Musculoskeletal Disorders Drugs -
The pharmaceutical drugs market can be segmented by type of musculoskeletal disorders drugs into
- a) Drugs For Rheumatoid Arthritis
- b) Muscle Relaxants
- c) Others - Musculoskeletal Disorders Drugs
By Type of Anti-Infective Drugs -
The pharmaceutical drugs market can be segmented by type of anti-infective drugs into
- a) Antibiotics
- b) Antivirals
- c) Antifungals
- d) Others (Anthelminthic, Antiprotozoal)
By Type of Hematology Drugs -
The pharmaceutical drugs market can be segmented by type of hematology drugs into
- a) Blood Products
- b) Anemia And Other Blood Disorder Drugs
By Type of Dermatology Drugs -
The pharmaceutical drugs market can be segmented by type in dermatology drugs into
- a) Drugs For The Treatment Of Acne
- b) Drugs For Dermatitis
- c) Drugs For The Treatment Of Psoriasis
By Type of Metabolic Disorders Drugs -
The pharmaceutical drugs market can be segmented by type of metabolic disorders drugs into
- a) Anti-Diabetics drugs
- b) Anti-Thyroid Drugs
- c) Others (Hyperparathyroidism, Hypopituitarism, Hypoadrenalism)
By Type of Respiratory Diseases Drugs -
The pharmaceutical drugs market can be segmented by type of respiratory diseases drugs into
- a) Anti-Asthmatics And COPD Drugs
- b) Cough And Cold Preparations
By Type of Gastrointestinal Drugs -
The pharmaceutical drugs market can be segmented by type of gastrointestinal drugs into
- a) Antacids
- b) Antiulcerants
- c) Vitamin And Minerals
- d) Antiobesity
- e) Antiemetics And Antinauseants
- f) Antidiarrhoeal
By Type of Ophthalmology Drugs -
The pharmaceutical drugs market can be segmented by type of ophthalmology drugs into
- a) Antiglaucoma Drugs
- b) Dry Eye Medication
- c) Other Ophthalmological Drugs (Retinal Disorders, Anti-Infectives/Allergy)
By Type of Genito-Urinary Drugs -
The pharmaceutical drugs market can be segmented by type of genito-urinary drugs into
- a) Hormonal Contraceptives
- b) Drugs For Benign Prostatic hypertrophy
- c) Drugs For Infertility
- d) Drugs For Erectile Dysfunction
- e) Drugs For Urinary Incontinence And Overactive Bladder
- f) Drugs For Infections And Others
- g) Drugs For Hormonal Replacement Therapy
- h) Diuretics
By Type of Medical Equipment -
The healthcare market can be segmented by type of medical equipment into
- a) In-Vitro Diagnostics
- b) Dental Equipment And Supplies
- c) Ophthalmic Devices
- d) Diagnostic Imaging Equipment
- e) Cardiovascular Devices
- f) Hospital Supplies
- g) Surgical Equipment
- h) Orthopedic Devices
- i) Patient Monitoring Devices
- j) Diabetes Care Devices
- k) Nephrology And Urology Devices
- l) ENT Devices
- m) Anesthesia And Respiratory Devices
- n) Neurology Devices
- o) Wound Care Devices
By Type of In-Vitro Diagnostics -
The medical equipment market can be segmented by type of in-vitro diagnostics devices into
- a) Point-of-Care Diagnostics Devices And Equipment
- b) Immunochemistry Diagnostic Devices And Equipment
- c) Clinical Chemistry Diagnostics Devices And Equipment
- d) Molecular Diagnostics Devices And Equipment
- e) Microbiology Diagnostic Devices And Equipment
- f) Hemostasis Diagnostic Devices And Equipment
- g) Hematology Diagnostic Devices And Equipment
- h) Immunohematology Diagnostic Devices And Equipment
By Type of Dental Equipment And Supplies Devices -
The medical equipment market can be segmented by type of dental equipment and supplies into
- a) Therapeutic Dental Equipment
- b) General Dental Devices And Equipment
- c) Dental Diagnostic Imaging Devices And Equipment
- d) Dental Surgical Devices And Equipment
By Type of Ophthalmic Devices -
The medical equipment market can be segmented by type of ophthalmic devices into
- a) Vision Care Devices And Equipment
- b) Cataract Surgery Devices And Equipment
- c) Refractive Surgery Devices And Equipment
- d) Diagnostic And Monitoring Ophthalmic Devices And Equipment
By Type of Diagnostic Imaging Equipment -
The medical equipment market can be segmented by type of in-vitro diagnostics device diagnostic imaging equipment s into
- a) X-Ray Systems Devices And Equipment
- b) Ultrasound Systems Devices And Equipment
- c) Computed Tomography (CT) Scanners Devices And Equipment
- d) Magnetic Resonance Imaging Systems Devices And Equipment
- e) Cardiovascular Monitoring And Diagnostic Devices And Equipment
- f) Nuclear Imaging Devices And Equipment
By Type of Hospital Supplies -
The medical equipment market can be segmented by type of hospital supplies into
- a) Disposable Hospital Supplies
- b) Sterilization Equipment And Disinfectants
- c) Mobility Aids And Transportation Equipment
- d) Operating Room Equipment
By Type of Cardiovascular Devices -
The medical equipment market can be segmented by type of cardiovascular devices into
- a) Cardiovascular Surgery Devices And Equipment
- b) Cardiac Rhythm Management (CRM) Devices And Equipment
- c) Interventional Cardiology Devices And Equipment
- d) Defibrillator Devices And Equipment
- e) Peripheral Vascular Devices And Equipment
- f) Prosthetic Heart Valve Devices And Equipment
- g) Electrophysiology Devices And Equipment
- h) Cardiac Assist Devices And Equipment
By Type of Surgical Equipment -
The medical equipment market can be segmented by type of surgical equipment into
- a) Surgical Sutures And Staples
- b) Handheld Surgical Devices And Equipment
- c) Electrosurgical Devices And Equipment
By Type of Patient Monitoring Devices -
The medical equipment market can be segmented by type of patient monitoring devices into
- a) Fetal And Neonatal Monitoring Devices
- b) Weight Monitoring And Body Temperature Monitoring Devices And Equipment
- c) Vital Parameter Monitoring Devices And Equipment
- d) Remote Patient Monitoring Devices And Equipment
By Type of Orthopedic Devices -
The medical equipment market can be segmented by type of orthopedic devices into
- a) Joint Reconstruction Devices And Equipment
- b) Spinal Surgery Devices And Equipment
- c) Trauma Fixation Devices And Equipment
- d) Orthobiologics Devices And Equipment
- e) Arthroscopy Devices And Equipment
- f) Orthopedic Braces And Support Devices And Equipment
- g) Craniomaxillofacial (CMF) Devices And Equipment
- h) Orthopedic Prosthetics
- i) Orthopedic Accessories
By Type of Diabetes Care Devices -
The medical equipment market can be segmented by type of diabetes care devices into
- a) Blood Glucose Test Strips
- b) Insulin Pens, Syringes, Pumps And Injectors
- c) Lancing Devices And Equipment
- d) Continuous Glucose Monitoring Devices And Equipment
- e) Blood Glucose Meters
By Type of Nephrology And Urology Devices -
The medical equipment market can be segmented by type of nephrology and urology devices into
- a) Dialysis Devices And Equipment
- b) Urinary Stone Treatment Devices And Equipment
- c) Urinary Incontinence & Pelvic Organ Prolapse Devices And Equipment
- d) Benign Prostatic Hyperplasia (BPH) Treatment Devices And Equipment
- e) Endoscopy Devices And Equipment
By Type of ENT Devices -
The medical equipment market can be segmented by type of ENT devices into
- a) Hearing Aid Devices And Equipment
- b) Hearing Diagnostic Devices And Equipment
- c) ENT Surgical Devices And Equipment
- d) Hearing Implants
- e) Voice Prosthesis Devices And Equipment
- f) Nasal Splints
By Type of Anesthesia And Respiratory Devices -
The medical equipment market can be segmented by type of anesthesia and respiratory devices into
- a) Respiratory Devices And Equipment (Therapeutic And Diagnostic)
- b) Anesthesia Machines
- c) Anesthesia Disposables
- d) Respiratory Disposables
By Type of Neurology Devices -
The medical equipment market can be segmented by type of neurology devices into
- a) Cerebrospinal Fluid Management (CSF) Devices And Equipment
- b) Interventional Neurology Devices And Equipment
- c) Neurosurgery Devices And Equipment
- d) Neurostimulation Devices
By Type of Wound Care Devices -
The medical equipment market can be segmented by type of wound care devices into
- a) Traditional Adhesive Dressings
- b) Negative-pressure Wound Therapy (NPWT)
- c) Traditional Gauze Dressings
- d) Advanced Wound Care Devices
By Type of Biologics -
The healthcare market can be segmented by type of biologics into
- a) Monoclonal Antibodies (MAbS)
- b) Therapeutic Proteins
- c) Vaccines
By Type of Veterinary Healthcare -
The healthcare market can be segmented by type of veterinary healthcare into
- a) Veterinary Services
- b) Animal Medicine
- c) Veterinary Medical Equipment
By Geography -
The healthcare market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- o Asia Pacific
- China
- Japan
- India
- Australia
- o Eastern Europe
- o South America
- o Middle East
- o Africa
North America was the largest market for healthcare, accounting for 41.9% of the global market in 2018. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest growing regions in the healthcare market will be Asia Pacific and Africa, where growth will be at CAGRs of 13.4% and 13.1% respectively. These will be followed by the Middle East and South America where the markets are expected to grow at CAGRs of 12.8% and 10.7% respectively.
Healthcare Competitive Landscape
Major Competitors are:
- • National Health Service
- • Kaiser Permanente
- • Johnson & Johnson
- • Pfizer
- • Novartis AG
Other Competitors Include:
- • F. Hoffmann-La Roche Ltd
- • Sanofi S.A
- • Merck & Co
- • Medtronic Inc.
- • AbbVie
- • All India Institute of Medical Sciences (AIIMS)
- • Postgraduate Institute of Medical Education & Research (PGIMER)
- • Christian Medical College
- • Apollo Specialty Hospital
- • Fortis Hospital
- • Tata Memorial Hospital
- • Sino care Group
- • Benq Hospital
- • Aier Eye Hospital Group
- • Phoenix Healthcare Group
- • Chindex International Inc
- • National Hospital Organisation Medical centre
- • National Cancer Center Hospital
- • Beppu National Rehabilitation Center for Persons with Severe Disabilities
- • Royal Melbourne Hospital
- • Royal Children’s Hospital
- • Sir Charles Gairdner Hospital
- • Royal Brisbane and Women’s Hospital
- • Auburn Hospital
- • Bumrungrad International Hospital
- • Asan Medical Centre
- • Gleneagles Hospital
- • Hong Kong Sanatorium and Hospital
- • Wooridul Spine Hospital
- • Benq Hospital
- • Aier Eye Hospital Group
- • Cipla
- • Dr. Reddy’s Laboratories Ltd
- • Sun Pharma
- • Lupin Ltd.
- • Aurobindo Pharma
- • Johnson & Johnson
- • GE Healthcare
- • Covidien Healthcare
- • Philips Healthcare
- • Fisher & Paykel Healthcare
- • Smiths Medical
- • Biocon
- • Wockhardt
- • Zydus Cadilla
- • Reliance Life Sciences
- • Intas Biopharmaceuticals
- • Blue Cross of India
- • ICAR-IVRI
- • Sanjay Gandhi Animal Care Center
- • Olympus Medical Systems
- • NIPRO
- • Toshiba Medical Systems
- • Hitachi Medico
- • Nihon Koden
- • Fukuda Denshi
- • Daichi Sankyo
- • Otsuka
- • Eisai
- • Astellas
- • Assistance Publique Hôpitaux de Paris
- • Bordeaux University Hospital
- • University Hospitals of Strasbourg
- • Freeman Hospital
- • Birmingham Children’s Hospital
- • St Thomas Hospital
- • University Clinic Heidelberg (Universittsklinikum Heidelberg)
- • Erasmus Medisch Centrum (Universitait Medisch Centrum Rotterdam)
- • Novartis
- • Teva Pharmaceutical Industries
- • AstraZeneca
- • Novo Nordisk
- • Bayer
- • Roche
- • Siemens AG
- • Russian Children`s Hospital
- • Bakoulev Center for Cardiovascular Surgery
- • Russian Academy of Medical Sciences
- • Instytut Psychiatrii i Neurologii
- • Centrum Zdrowia Dziecka
- • Medical Center Medlife
- • Pediatricka Klinika 2 Lekarske Fakulty
- • Microgen
- • Geropharm
- • Valenta Pharm
- • NovaMedica
- • Mayo Clinic
- • Cleveland Clinic
- • Johns Hopkins Hospital
- • Massachusetts General Hospital
- • University of Michigan Hospital
- • UCSF Medical Center
- • UCLA Medical Center
- • Cedars-Sinai Medical Center
- • Victoria General Hospital
- • Sturgeon Community Hospital Foundation
- • Grace Hospital
- • Chaleur Regional Hospital
- • Perth And Smiths Falls District Hospital
- • St. Joseph’s Health Care
- • The Ottawa Hospital
- • Upper River Valley Hospital
- • Princess Margaret Cancer Centre
- • Hospital Español
- • General Hospital of Mexico
- • Lovelace Medical Group
- • Pfizer Inc
- • Amgen
- • AbbVie
- • Merck & Co.
- • Eli Lilly and Company
- • Medtronic
- • Stryker Corporation
- • Philips Healthcare
- • Masimo
- • Teleflex Inc.
- • Getinge Group
- • Instituto Nacional de Câncer (INCA)
- • Hospital Israelita Albert Einstein
- • Abc Clinica
- • Abmed Convenio Medico Hospitalar
- • Acao Social Franciscana Hospital
- • Hospital Alemán
- • Hospital Británico
- • Sociedad Española de Beneficencia
- • Hospital Español
- • Hospital Italiano de Buenos Aires
- • Sanatorio Otamendi
- • Clínica Alemana
- • Hospital Clínico Universidad de Chile
- • Hospital Santiago Oriente Dr.Luis Tisné Brousse
- • Pablo Tobón Uribe
- • EMS Pharma
- • Hypermarcas
- • Medley, Sanofi
- • King Faisal Specialist Hospital & Research Centre
- • Tel Aviv Sourasky Medical Center
- • Clalit Health Services
- • Riyadh Military Hospital
- • Hadassah Medical Organization
- • Baskent Universitesi Adana Hastanesi
- • Saudi Pharmaceutical Industries
- • Medical Appliances Corporation (SPIMACO)
- • Gulf Pharmaceutical Industries
- • Gambro Healthcare
- • AIC Kapsowar Hospital
- • Institut Pasteur de Madagascar
- • Neuropsychiatric Hospital Aro Abeokuta
- • Ganzouri Specialized Hospital
- • Netcare Group
- • Arab Contractors Medical Center
- • Life healthcare Hospital Group
- • Diani Beach Hospital
- • Centre Hospitalier Mohammed VI Marrakech
- • Adcock Ingram