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Asia Pacific Healthcare Outlook 2012-2015, What Comes Next

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Frost & Sullivan analysis on Asia Pacific Healthcare Outlook 2012-2015 presented by Rhenu Bhuller, VP Healthcare Practice, Frost & Sullivan Asia Pacific at Frost & Sullivan Indonesia Outlook 2012 …

Frost & Sullivan analysis on Asia Pacific Healthcare Outlook 2012-2015 presented by Rhenu Bhuller, VP Healthcare Practice, Frost & Sullivan Asia Pacific at Frost & Sullivan Indonesia Outlook 2012 Briefing, 6 March 2012.

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  • 1. Asia Pacific Healthcare Outlook 2012- 2015 What comes next…. Rhenu Bhuller Vice President, HC rbhuller@frost.com
  • 2. Global vs. APAC: The New FrontierIn 2011, APAC is estimated to be 28.5% of global market Global & APAC Healthcare Revenues US$ Bn, 2011-20151800.0 CAGR Market Drivers1600.0 4.3%1400.0 • By 2020, Chronic disease deaths in APAC will grow at 20%.1200.0 • 15% of the 37 million deaths worldwide is 1060.7 related to Pandemic and epidemic diseases,1000.0 1017.5 978.1 1/3 of such was from APAC. 928.8 • Private expenditures is increasing in China 800.0 895.6 and India, private spending accounted for 600.0 49.9% and 67.2% respectively in 2009. CAGR 400.0 12.1% 491.7 562.1 440.1 200.0 356.5 396.4 Market Restraints 0.0 2011 2012 2013 2014 2015 • Per capita healthcare expenditure is far APAC Rest of the World below global average (lowest is Vietnam and ($ Billion) ($ Billion) Indonesia). • Shortage of healthcare professionals. Health• By 2015, APAC could represent 34.6% of global market care workers in APAC is 6.8 per 1,000 population, compared to 18.9 in Europe and 28.5 % APAC Share 34.6% 24.8 in the Americas in 2010. • Access to healthcare and distribution limited in emerging markets.
  • 3. Pharma market will grow at almost triple the rate compared with the rest of the world, accounting for 1/3rd of total by 2015 Pharmaceuticals & Biotechnology, US$ Bn, 2011-20151,200.0 Market Drivers CAGR 3.8%1,000.0 • Increased long term use of multiple and specialized drugs for the aging population. • Enhanced health awareness and purchasing 800.0 power boosting over-the-counter purchase. 738.5 707.4 • Government support for generics/bio- 677.6 similars. 600.0 649.0 636.0 • Increased disease incidence boosted by availability and usage of new diagnostic 400.0 tools. CAGR 11.5% 200.0 346.1 389.4 252.1 278.4 309.4 0.0 Market Restraints 2011 2012 2013 2014 2015 APAC Rest of the World • Patent expiry of major pharmaceutical ($ Billion) ($ Billion) products. • Cost control measures by various governments. 28.4% APAC Market Share 34.5% • In markets with strong local manufacturing, government tenders favor local manufacturers.
  • 4. APAC Medical Devices Local Asian companies spur growth through low cost products Medical Devices Revenues, US$ Bn, 2011-2015400.0 Market Drivers350.0 CAGR 5.1% • By 2015, Cardiology market is expected to300.0 reach $18 billion. • Surgical procedures are growing at 12.0 %.250.0 208.69 • Japan and South Korea lead MIS in APAC, 201.19 demand for MIS increasing in Singapore,200.0 200.10 185.07 Malaysia, Australia and Thailand, driving devices 170.92 market.150.0 • Local Asian companies of Japan, China, Korea CAGR and Taiwan offering cost effective products.100.0 14.0% 140.0 50.0 104.1 116.2 82.8 94.1 0.0 2011 2012 2013 2014 2015 APAC Rest of the World Market Restraints ($ Billion) ($ Billion) • Technology based pricing approval remains a hurdle. 26.3 APAC Market Share 36.6 • Public hospitals practice- lowest price bidding, leads to price war. • Inadequate training or certification for allied healthcare staff.
  • 5. Medical Imaging A technological challenge, new vs refurbished … Medical Imaging Revenues, US$ Bn, 2011-201545.0 CAGR40.0 4.3% Market Drivers35.0 • Increased demand for health screening.30.0 • Reverse innovation of customized Asian 28.49 medical imaging products to cater for25.0 27.54 26.19 different culture and population. 25.00 • R & D in medical imaging allows20.0 24.04 technological advancement - Molecular15.0 Imaging, Drug therapy combined with CAGR Ultrasound.10.0 11.2% 12.2 13.4 5.0 8.8 9.8 11.0 Market Restraints 0.0 2011 2012 2013 2014 2015 • APAC Refurbished market for imaging APAC Rest of the World equipments is expected to reach 9% growth ($ Billion) ($ Billion) by 2015. • System interoperability hinders new systems 26.7 APAC Market Share 32.0 adoption in hospitals.
  • 6. Healthcare Information TechnologyAPAC HIT growing at global pace of 9.0% Healthcare IT Revenues, US$ Bn, 2011-201545.040.0 CAGR Market Drivers 9.2%35.0 • Quality, regulatory and performance30.0 application growing at 11.0% CAGR.25.0 • Patient and Revenue cycle management 31.96 31.00 related application will drive HIT with 10.3%20.0 27.01 CAGR. 25.29 22.50 • Departmental Systems market size is15.0 expected to be $ 875 million in 2011, growing CAGR at 7.1%.10.0 9.7% 5.0 8.2 5.7 6.2 6.8 7.5 0.0 2011 2012 2013 2014 2015 APAC Rest of the World Market Restraints ($ Billion) ($ Billion) • System interoperability hinders market growth. APAC Market Share • Too many small vendors offering HIT 20.2 20.5 solutions.
  • 7. Healthcare Delivery Market:Rising middle income, medical tourism create impact APAC Healthcare Delivery Market Size US$ Bn, 2011-2015 Market Drivers Market Restraints 500 CAGR 8.0% 450 420 400 390 362 • Aging & growing • Manpower shortage 350 334 Population 309 300 • Access disparity between • Rise in chronic disease urban & rural regions 250 • Medical Tourism • Inability to meet demand of 200 • Rising middle and healthcare services in smaller affluent income 150 cities and rural areas population 100 50 - 2011 2012 2013 2014 2015 Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan• International accreditations (e.g. JCI) likely to become the prerequisite for hospitals targeting to participate in medical tourism. Stringent operational and stringent accreditation requirements likely to escalate the clinical and operational quality standards, thus increasing market competitiveness
  • 8. Healthcare Delivery 2015… Delivery of health at home Consolidation of retail healthcare service model Integration of primary and secondary healthcare facilities. Establishment of electronic medical records integrating primary and secondary healthcare Satellite based hospital model using advanced medical technologies for increasing accessibility in rural areas Healthcare as a service industry Influx of non-traditional healthcare institutions investments New models of Holistic healthcare hubs integrating tertiary care, wellness, aged care and clinical R&D Increasing funding opportunity for medical tourism through expanded international medical insurance Differentiation of hospital models through specialty or holistic health platforms
  • 9. The Future of Healthcare . . . .Linking Stakeholders From Different Industries Assisted Lifestyle Retirement Homes Medical Spa Healthy Villages Preventive Wellness Wellness Villages Medical Wellness Healthcare Cosmetic Surgery Nutritional Primary Alternative Corporate Wellness Community Secondary Spa Fitness Tertiary Beauty Courses Nutritional Supportive Industries Education Hospitality
  • 10. Where to place your bets: 2012- 2015 Japan S.Korea China Thailand Hospital services India Taiwan Malaysia Vietnam Monitoring and Singapore Indonesia diagnostics Mobile Philippines Australia Healthcare Digital Imaging Distribution, manufacturing OTC, Traditional pharmaceuticals, Healthcare Specialty based hospitals branded generics Growth manpower vs. Holistic wellness hospitals Medical devices, Primary and Diagnostic biotech Tier2 and Tier3 stand alone centers Healthcare Service Center development New materials, biotechnology INNOVATION SUPER LEADERSHIP TRIGGER GROWTH Time Source: Frost & Sullivan.
  • 11. Frost & Sullivan An Active Contributor to Global HC Market Development
  • 12. The Frost & Sullivan StoryPioneered Emerging Market Partnership Relationship& Technology Research with Clients Visionary Innovation• Global Footprint Begins • Growth Partnership Services • Mega Trends Research• Country Economic Research • GIL Global Events • CEO 360 Visionary Perspective• Market & Technical Research • GIL University • GIL Think Tanks• Best Practice Career Training • Growth Team Membership™ • GIL Global Community• MindXChange Events • Growth Consulting • Communities of Practice12
  • 13. What Makes Us Unique Focused on Growth All services aligned on growth to help clients develop and implement innovative growth strategies Industry Continuous monitoring of industries and their convergence, giving Coverage clients first mover advantage in emerging opportunities Global More than 40 global offices ensure that clients gain global perspective Footprint to mitigate risk and sustain long term growth 360 Degree Proprietary Team Methodology integrates 7 critical research Perspective perspectives to optimize growth investments Career research and case studies for the CEOs’ Growth Team to ensure Career Best Practices growth strategy implementation at best practice levels Visionary Innovation Close collaboration with clients in developing their research based Partner visionary perspective to drive GIL13
  • 14. Healthcare – Areas of Expertise Pharmaceuticals &Pharmaceuticals & Biotech Medical Devices Medical Imaging Healthcare Services Biotech CNS, Oncology, Diabetes, Hospital Services, Physicians, Cardiology, Drug Delivery, Cardiology, Hypertension, Cardiovascular Devices PACS, MRI, Cardiac, CT, Key Opinion Leaders study, Emerging Areas, Pipeline Diabetes, Oncology, CNS, Pain Orthopedic Devices, Home Care, Ultrasound, PET, Nuclear Diagnostic centres, analysis, Biotech Oncology, Management, Respiratory, Surgical & Infection Control Imaging, Core Imaging Healthcare Drug Delivery Biotechnology, Women’s Health, Drug Delivery, Contract Manufacturing, Pdts, General Medical Devices, Modalities Institutions,Pharma medical Contract Research, Emerging Areas, Pipeline Hospital Supplies and Products Imaging Agents, Imaging education. Ophthalmic, Chronic Diseases Analysis, Vaccines, Antibiotics Wound Care/ Management Software, PACS & Imaging Products IT , Digital ImagingHealthcare and Life Sciences Drug Discovery & ClinicalIT Patient Monitoring Financial Services Diagnostics Cardiac Monitoring Electronic Medical Records, HIS External Defibrillators Genomics, Proteomics, IPO, Mergers and Clinical Information Systems, Multi-Parameter Monitoring Cellomics, HTS, SNP, IVD, Acquisition, Strategic Telemedicine, Life sciences IT, Temperature Monitoring Genetic Testing, Molecular Partnership, Business Outsourcing, Healthcare Pulse Oximetry Diagnostics Matching Outsourcing, Clinical Solutions Remote Patient Monitoring Managed Care Services, Patient Monitoring IT Medical Care Providers, Sleep Apnea Monitoring Consumer-based Healthcare Glucose Monitoring Blood Pressure Monitoring
  • 15. Growth Tools and Methodologies Our Thought Leadership on Growth CEO 360 Perspective Growth Acceleration System Growth Excellence Matrix External Internal Market Corporate Opportunities & Growth Landscape Objective s GROWTH ZONE Growth Execution Capabilities Internal Growth Workshops Growth Pipeline Growth EnvironmentBest Practices on Implementation Growth Diagnostic Blueprint 10 Growth Processes
  • 16. Frost & Sullivan’s Growth Partnership Services Programme:3 Core Pillars
  • 17. From Macro to Micro: How To Take Mega Trends from Information toStrategy Implementation Macro Micro Analysis of Mega TrendSelected Trends That OpportunitiesImpact Your Business and Unmet And Markets NeedsExample: Urbanization, Example: Mega City Satellites electric cars with small turning radius, Impact on autonomous parking in busy cities, Facebook on Sub Trend Future Product/ wheels, seamless A Sub Layer of Trends that Has Wide Ranging Impact Technology switching from home to car Example: New Product Example: Three concepts of Impact to Your Opportunity - New Mega City urbanization will emerge: Cars, Car sharing, megacities, mega regions and Industry New Technology Opportunities – mega corridors. Smart Cities. Visualising The Roadmap Of Connected car , e.g. Internet Civilian satellites means high These Critical Forces Through Radio speed broadband, wireless and 4G Scenario Building and Macro and free wi-fi in public places/cities Economic Forecasts Example: People in future will need “personal mobility” not necessarily cars to commute to work. This will lead to need for integrated mobility combining all forms of transport including cars
  • 18. For further information, please contact Dewi Nuraini Corporate Communications – Indonesia P: +6221 5710838 M: +62 856 7800 792 E: dewi.nuraini@frost.com