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Asia Pacific Healthcare Outlook           2012-2015      What comes next….             Reenita Das   SVP Healthcare and Li...
What’s Trending for 2012…2015           China will be the largest pharmaceutical and medical devices market in APAC.      ...
Global Reflections from 2011 and the way forward…                        Healthcare becomes                        data dr...
The Asian perspective…Mobile phone users will rise from 2.2 billion in 2011to 3.4 billion in 2015                        G...
China and Japan Steal the Show by 2015Taiwan/Indonesia catching up in Tier 2 countriesIndia is disappointing despite the h...
Global vs. APAC: The New FrontierIn 2011, APAC is estimated to be 28.5% of global market  Global & APAC Healthcare Revenue...
Pharma market will grow at almost triple the rate compared with the rest of theworld, accounting for 1/3rd of total by 201...
APAC Medical Devices    Local Asian companies spur growth through low cost products        Medical Devices Revenues, US$ B...
Medical ImagingChina is expected to own 30% of APAC market by 2015…       Medical Imaging Revenues, US$ Bn, 2011-201545.0 ...
Japan will continue to lead the APAC market with more than 40% market share  Diagnostics Revenues, US$ Bn, 2011-2015      ...
APAC HIT growing at global pace of 9.0%. Will APAC jump the curve?       Healthcare IT Revenues, US$ Bn, 2011-201545.040.0...
Where to place your bets in APAC: 2012- 2015                                                                              ...
Follow Frost & Sullivan onFacebook, LinkedIn, SlideShare, and Twitter  http://www.facebook.com/pages/Frost-Sullivan/249995...
For Additional Information  Donna Jeremiah                 Carrie Low  Corporate Communications       Corporate Communicat...
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Asia Pacific Healthcare Outlook 2012-2015: What comes next...

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Frost & Sullivan Analyst Briefing on the Asia Pacific Healthcare Outlook for 2012-2015

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Asia Pacific Healthcare Outlook 2012-2015: What comes next...

  1. 1. Asia Pacific Healthcare Outlook 2012-2015 What comes next…. Reenita Das SVP Healthcare and Life Sciences 1 “We Accelerate Growth”
  2. 2. What’s Trending for 2012…2015 China will be the largest pharmaceutical and medical devices market in APAC. Half of the growth in healthcare will come from the “E7”.Mobile Health to become the biggest business model disruptor creating access for healthcare delivery on a mass basis especially in emerging economies. Healthcare expenditure in APAC will increase by 75%. Competition between Asian diagnostics companies and MNCs will spur innovation. Advanced medical technologies will be defined by "lower cost scaled down technology“, reverse innovation will help leapfrog cost barriers. Surprisingly India is expected to lag behind in all healthcare segments except in Pharmaceuticals. Gen Y is going to break down some of the organizational sclerosis that is clogging up our healthcare system. Health enhancements set to become one of the top 10 market places in healthcare. Higher proliferation of non - healthcare companies entering healthcare. 2
  3. 3. Global Reflections from 2011 and the way forward… Healthcare becomes data driven and Patients will be customized. More Kings and Healthcare Queens of the Evolves to focus on cost The flood gate healthcare versus outcomes Silicon Valley Become a of Health system and the Hi-Tech 1 billion Service Industry Marts: “you’re industry gets seniors by Mckesson involved in 2020 and 2 sick…we’re quick” 2011 leads the way to consumerize healthcare 2015 billion by 2050 healthcare HomeMore “generics” R & D spend is healthcare and The big Tidal– technologies Gold Rush to $ 1.15 trillion up care givers Wave:providing same Emerging Markets: despite economic dominate the Performancevalue at lower Indonesia, Russia, recession agenda basedprice, stripped Mexico, Brazil, India Diagnostics and Insurancedown feature , Turkey and China Monitoring will policiessets become the – comprising 1/5th of the worldwide golden goose health care sales 3
  4. 4. The Asian perspective…Mobile phone users will rise from 2.2 billion in 2011to 3.4 billion in 2015 Growth of mHealth Asian will facilitate hospitals penetration of evolve to healthcare services becomeAPAC global brands APACHealthcare Healthcaremarket saleswill account for 2011 market sales comprises 35% 201529% in 2011 in 2015 Increase of Multiple green partnerships technology in between manufacturing, NGOs, private logistics and and healthcare government for delivery Asian disease based R&DTraditional Most countriesmedicine and Emergence of New in APAC wouldsupplements markets: havegaining market Vietnam, Indo implemented Over half of the middle classstrength and nesia, Laos, an EMR platforms will be from the APAC regionrecognition d Myanmar in by 2020. Gen Y to drive how development of healthcare is delivered healthcare infrastructure 4
  5. 5. China and Japan Steal the Show by 2015Taiwan/Indonesia catching up in Tier 2 countriesIndia is disappointing despite the hype… TIER 1 Pharmaceuticals Medical Medical Diagnostics Healthcare IT & Biotechnology Devices ImagingTotal Market $ 389.4 bil $ 140.0 bil $ 13.4 bil $ 11.0 bil $ 8.2 bil Size (2015) 1 China China Japan Japan Japan 2 Japan Japan China China Australia 3 India Australia South Korea India Taiwan 4 South Korea South Korea Australia Australia China 5 Australia India India South Korea South Korea TIER 2 1 Taiwan Taiwan Taiwan Indonesia Hong Kong 2 Indonesia Malaysia Malaysia Malaysia Singapore 3 Thailand Thailand Philippines Thailand Malaysia 4 Philippines Indonesia Indonesia Hong Kong Philippines 5 Vietnam Philippines Thailand Vietnam Indonesia 5
  6. 6. Global vs. APAC: The New FrontierIn 2011, APAC is estimated to be 28.5% of global market Global & APAC Healthcare Revenues US$ Bn, 2011-2015 1800.0 1600.0 CAGR Market Drivers 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 1000.0 1017.5 related to Pandemic and epidemic 978.1 diseases, 1/3 of such was from APAC. 928.8 800.0 895.6 • Private expenditures is increasing in China and India, private spending accounted for 600.0 49.9% and 67.2% respectively in 2009. CAGR 400.0 12.1% 491.7 562.1 200.0 356.5 396.4 440.1 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. 6
  7. 7. Pharma market will grow at almost triple the rate compared with the rest of theworld, 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- 677.6 600.0 649.0 similars. 636.0 • Increased disease incidence boosted by availability and usage of new diagnostic 400.0 CAGR tools. 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. 7
  8. 8. 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 $18 billion. • Surgical procedures are growing at 12.0 %.250.0 208.69 • Japan and South Korea lead MIS in 201.19 APAC, demand for MIS increasing in200.0 200.10 185.07 Singapore, Malaysia, Australia and 170.92 Thailand, driving devices market.150.0 • Local Asian companies of Japan, China, Korea CAGR and Taiwan offering cost effective products.100.0 14.0% 140.0 50.0 104.1 116.2 82.8 94.1 0.0 2011 2012 2013 2014 2015 APAC Rest of the World Market Restraints ($ 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. 8
  9. 9. Medical ImagingChina is expected to own 30% of APAC market by 2015… 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. 25.0020.0 24.04 • R & D in medical imaging allows 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 0.0 Market Restraints 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. 9
  10. 10. Japan will continue to lead the APAC market with more than 40% market share Diagnostics Revenues, US$ Bn, 2011-2015 Market Drivers CAGR 5.98% • Government efforts to standardize testing by regulating diagnostic testing and instruments. • MNCs setting up marketing and manufacturing bases in APAC and providing competition to local diagnostic companies. • Greater acceptance of technology by physicians and growing awareness of middle CAGR class patients. 11.44% • The molecular diagnostics market is growing by 42% in India and 22.7% in China. Market Restraints APAC Market Share • Limited government budget for diagnostics. 14.5 17.2 • Lack of awareness about healthcare insurance coverage for clinical tests. • Highly price sensitive market. • Lack of awareness and accessibility of diagnostic testing in rural areas. 10
  11. 11. APAC HIT growing at global pace of 9.0%. Will APAC jump the curve? Healthcare IT Revenues, US$ Bn, 2011-201545.040.0 CAGR Market Drivers35.0 9.2% • Quality, regulatory and performance30.0 application growing at 11.0% CAGR.25.0 31.96 • Patient and Revenue cycle management 31.00 related application will drive HIT with 10.3%20.0 27.01 25.29 CAGR. 22.5015.0 • Departmental Systems market size is expected to be $ 875 million in 2011, growing10.0 CAGR at 7.1%. 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. 11
  12. 12. Where to place your bets in APAC: 2012- 2015 Japan S.Korea Preventive healthcare & China Thailand Wellness monitoring India Taiwan Malaysia Vietnam Singapore Indonesia Mobile Philippines Australia Healthcare EMR/ Biosimilars Robotic surgery EHR Vaccines Traditional Silver Industry pharmaceuticals Growth Equipment Hospital (home care) MIS Services Molecular Diagnostics Telemedicine Digital Imaging INNOVATION SUPER NORMALISATION LEADERSHIP TRIGGER GROWTH Time Source: Frost & Sullivan. 12
  13. 13. Follow Frost & Sullivan onFacebook, LinkedIn, SlideShare, and Twitter http://www.facebook.com/pages/Frost-Sullivan/249995031751?ref=ts http://www.linkedin.com/companies/4506 http://www.slideshare.net/FrostandSullivan http://twitter.com/frost_sullivan 13
  14. 14. For Additional Information Donna Jeremiah Carrie Low Corporate Communications Corporate Communications Asia Pacific Asia Pacific +603 6204 5832 +603 6204 5910 djeremiah@frost.com carrie.low@frost.com Jessie Loh Reenita Das Corporate Communications Senior Vice President Asia Pacific Healthcare and Life Sciences +65 6890 0942 apacfrost@frost.com jessie.loh@frost.com 14

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