Asia to overtake Europe as second largest healthcare market by 2025 –report

December 5, 2016

As the global healthcare industry is set to grow at a compound annual growth rate (CAGR) of 5.6% to reach US$2.69 trillion by 2025, Asia is expected to replace Europe as the second largest healthcare market in the world by the same year. This is according to the new analysis, “Vision 2025 – Future of Healthcare,” which is part the Advanced Medical Technologies Growth Partnership Service program by research firm Frost & Sullivan.

There will also be significant changes in the regions and sectors generating the revenue, according to the analysis. The study noted that North America – while it is the largest healthcare market in the world today – may only retain this lead until 2028. Asia is poised to take the lead, with growth in healthcare expenditure as a percent of GDP set to be higher than North America and Europe.

By 2025, Latin America is also forecast to overtake Japan to become the fourth largest healthcare market globally, according to the analysis.

Meanwhile, aging populations worldwide are challenging and will continue to challenge existing healthcare systems financially and require improved healthcare outcomes.

Frost & Sullivan expects this to cause a shift towards value-based care and require national policies to change dramatically. The rise of consumerization as well will lead to patient-centric healthcare.

“With an aging population and increasing chronic disease prevalence, the focus on prevention and monitoring will be enforced. This is reflected in rising shares of healthcare expenditure for prevention, monitoring, and diagnosis, while the share for treatment will decline,” noted Frost & Sullivan Transformational Health Research Analyst Siddharth Shah.

“Emerging technological advances to help alleviate the situation will enable several new billion-dollar opportunities to arise in all sectors. The combined effect of transformational shifts and new opportunities will facilitate the emergence of new business models in the industry,” Shah added.