The global healthcare market continues to grow and evolve at an unprecedented rate – a transformation that is mainly fuelled by the events of the past two years and today’s technological advancements.
And, as the industry moves fast to deal with an aging population, a rising prevalence of chronic diseases, and increased user demand, it becomes challenging to capture a snapshot of the market as a whole.
And yet, some statistics, facts, and emerging trends can draw a comprehensive picture of this growing sector – Here’s the global healthcare industry at a glance.
When looking at the global healthcare market, it is easy to see that more than one transformational force is at play. Of course, industry players are reconfiguring their operations to remain competitive in today’s post-pandemic scenario.
But, at the same time, healthcare providers and pharmaceutical manufacturers are taking a long-term look at how the industry needs to change to meet the increased demand for quality and accessible care.
Here’s how the industry is developing on a global scale.
1. The Global Healthcare Market is Worth Nearly US$9.6 Trillion in 2022
According to statistics by PWC, the world’s healthcare industry is worth nearly $10 trillion. While the market is highly fragmented, it mainly focuses on the sale of healthcare services, pharmaceuticals, and medical treatments.
Some of the healthcare industry’s major players by market dominance include Johnson & Johnson, Pfizer Inc, and UnitedHealth Group Incorporated.
2. The Healthcare Industry is Growing at an Unprecedented CAGR of 10%
While the global healthcare market has already reached a record size, it’s now showing signs of slowing down!
According to recent estimates, the industry is currently growing at a Compound Annual Growth Rate (CAGR) of 9.8%, and it is expected to continue expanding at a rate of 8.4% through 2026, making it one of the fastest-growing industries worldwide.
3. The Global Healthcare IT Market Size Was US$135.6 billion in 2021 and Growing at an Annual Rate of Nearly 30%
The Healthcare Information Technology sector is supporting the growth of healthcare in more ways than one. Thanks to new technologies, the global healthcare market is scaling up operations and delivering care through virtual and digital tools, which is essential to meet the increased demand for accessible medical care.
Due to the vital role that IT is playing in the sector’s development, it isn’t surprising that this sub-market grew by 16.7% between 2019 and 2020, and it’s set to continue expanding at a rate of 29.3% to 2030.
4. North America Accounts For Over 41% of The Global Healthcare Market
North America represents the largest healthcare market and accounts for over 41% of the global healthcare trade.
What’s more, with nearly $12,000 invested per capita on healthcare services and medical treatments, the United States is the highest-spending country when it comes to health services, followed by Switzerland and Norway.
5. Healthcare Accessibility Remains an Issue For Half of the World’s Population
While the global healthcare market continues to evolve, nearly half of the world population lacks access to essential health services.
While this percentage is disproportionally higher in developing countries, estimates suggest that around 100 million people a year enter poverty due to medical expenses and over 50% of US citizens have to delay or skip medical treatment due to associated out-of-pocket expenses.
3 Essential Trends in the Global Healthcare Market
The global healthcare market is not only growing in size, but it is also developing towards a more efficient, accessible, and safe industry ready to support tomorrow’s demand. Here are the emerging trends with the potential of reshaping the industry.
Adoption of Emerging Technologies and Digital Tools
Digital tools – such as wearable devices, IoT, artificial intelligence (AI), machine learning (ML), and big data – are helping healthcare service providers deliver patient-focused, affordable, and quality care – especially in emerging markets.
For example, Medical Insurance in Hong Kong can be accessed through a digital platform that creates an ad hoc policy based on historical and client data.
The Rise of Telemedicine
Telemedicine or eHealth has proved itself to be an essential tool during the pandemic, and providers are now exploring its full potential. When paired with the right devices and datasets, virtual medicine can lead to more accessible health services – especially for people in rural areas or with mobility issues.
Providers can also use virtual consultations and deliver treatment plans digitally, thus reducing waiting times, resources, and costs.
A Renewed Focus on Preventive and Lifestyle Medicine
As the global population continues to age and the prevalence of long-term and chronic conditions continues to rise, health providers are now looking at how preventive and lifestyle medicine can reduce the burden on the global healthcare system.
With so much potential still uncovered, it isn’t surprising that this aspect of modern medicine is growing at a whopping annual rate of 14%!
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