Now is the time to invest in Telehealth in Asia

The global market for telehealth – comprising of telemedicine, remote patient monitoring and mHealth – presents considerable opportunities for healthcare companies as well as information, communication and technology (ICT) firms. With global revenue for consumer medical devices set to reach US$8.2 billion by the end of 2013, up 4% from last year, and revenue expansion for the next few years predicted to range from 5 to 9%, industry takings by 2017 are expected to amount to US$10.6 billion and provide a huge incentive for manufacturers and technology players to invest in telehealth products and services.

In the Asia-Pacific (APAC) region alone, a Frost and Sullivan report found that remote patient monitoring equipment generated US$773.million in 2012. Real-time telemedicine generated US$44.6 million, while mHealth was the largest revenue contributor to the telehealth industry – generating a whooping US$7.9 billion through voice, text and mobile services in healthcare.

The case of APAC is an interesting one for observing current trends and future outlook for telehealth. A study by the World Health Organisation found that the region ranked first in all four categories of teleradiology, teledermatology, telepathology and telepsychiatry in terms of number of ‘established’ initiatives, contrasting with Europe and the Americas where the total number of initiatives is lower and still in ‘pilot’ and ‘informal’ stages. In 2013, the APAC market for telehealth stood as one of the largest globally.

The industry took off in the region thanks to a number of factors which prompted governments to embrace the potential of technology and review their healthcare distribution models. As early as the 1990s, governments realised that unequal population densities and the under provision of healthcare facilities hampered equal access to healthcare for their populations. Pilot projects were implemented, allowing populations in remote locations to access physicians’ know-how through teleconsultations via audio and video. Driven by poor infrastructure –roads, clinics, hospitals–, low doctor-to-patient ratios and the explosion in chronic diseases, as well as ageing populations, telehealth has experienced a regional boom. Recognising the potential of technologies, governments have harnessed telehealth as a means to delivering accessible and universal healthcare, implementing national policies and programmes for the rollout of initiatives and fuelling adoption.

Human, environmental and technological hurdles still stand in the way of a smooth rollout of telehealth. Most important for success, willingness to participate is essential – from patients and physicians; from governments who can be the main pushers for adoption; as well as from the more general ecosystem which includes insurance companies, nursing homes and the media. The sustainability, affordability and scalability of telehealth products and services will be essential to building and preserving a vibrant environment. Finally, technological concerns remain crucial to the industry: problems of electricity supply, internet penetration and battery performance will need to be addressed to drive adoption and achieve greater performance.

For players looking to enter the regional market, national differences need to be considered. National policy support and development is one difference. While China, Indonesia and Thailand have national policies which were designed with the view that telehealth initiatives are a component of larger development initiatives, Cambodia and Vietnam’s telehealth activity is driven solely by international partners, guided by humanitarian concerns. Another difference relates to the objective given to telehealth. The spectrum ranges from those developing countries whose aim is to ensure that 100% of their population has access to adequate healthcare facilities, to countries like Singapore where the modern healthcare system is put under strain from the accelerating population ageing.

The Association of Southeast Asian Nations (ASEAN) has taken steps to ease requirements and regulation for conducting business in the region, ahead of the 2015 Free Trade Area agreement. In particular, a recent directive has standardised medical device registration, allowing suppliers to take advantage of more than US$400 million of new emerging business in four key areas (medical imaging, clinical care, healthcare IT and consumer medical devices). Alongside the bright market prospects, this will bring another reason for telehealth players to turn to the Asian market. With a clear strategy and approach with regards to understanding country regulations, national dynamics and population needs, companies looking to invest in the region are sure to gain from their investment.

By: Eleonore Mouy, Consultant, Point Consulting

Category: Top Story