Asia Pacific Healthcare Outlook 2012-2015, What Comes Next

Asia Pacific Healthcare Outlook

2012- 2015

What comes next….

Rhenu Bhuller

Vice President, HC

[email protected]

• Per capita healthcare expenditure is far

below global average (lowest is Vietnam and

Indonesia).

• Shortage of healthcare professionals. Health

care workers in APAC is 6.8 per 1,000

population, compared to 18.9 in Europe and

24.8 in the Americas in 2010.

• Access to healthcare and distribution limited

in emerging markets.

Market Restraints

• By 2020, Chronic disease deaths in APAC

will grow at 20%.

• 15% of the 37 million deaths worldwide is

related to Pandemic and epidemic diseases,

1/3 of such was from APAC.

• Private expenditures is increasing in China

and India, private spending accounted for

49.9% and 67.2% respectively in 2009.

Market Drivers

APAC Share

Global vs. APAC: The New Frontier In 2011, APAC is estimated to be 28.5% of global market

28.5 % 34.6%

Global & APAC Healthcare Revenues US$ Bn, 2011-2015

• By 2015, APAC could represent 34.6% of global market

356.5 396.4 440.1 491.7 562.1

895.6 928.8

978.1 1017.5

1060.7

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

1600.0

1800.0

2011 2012 2013 2014 2015

APAC ($ Billion)

Rest of the World ($ Billion)

CAGR

12.1%

CAGR

4.3%

252.1 278.4 309.4 346.1 389.4

636.0 649.0

677.6 707.4

738.5

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

2011 2012 2013 2014 2015

APAC ($ Billion)

Rest of the World ($ Billion)

Pharmaceuticals & Biotechnology, US$ Bn, 2011-2015

Market Drivers

• Increased long term use of multiple and

specialized drugs for the aging population.

• Enhanced health awareness and purchasing

power boosting over-the-counter purchase.

• Government support for generics/bio-

similars.

• Increased disease incidence boosted by

availability and usage of new diagnostic

tools.

Market Restraints

• Patent expiry of major pharmaceutical

products.

• Cost control measures by various

governments.

• In markets with strong local manufacturing,

government tenders favor local

manufacturers.

Pharma market will grow at almost triple the rate compared with the

rest of the world, accounting for 1/3rd of total by 2015

CAGR

11.5%

CAGR

3.8%

28.4% 34.5% APAC Market Share

• Technology based pricing approval remains a

hurdle.

• Public hospitals practice- lowest price bidding,

leads to price war.

• Inadequate training or certification for allied

healthcare staff.

Market Restraints

• By 2015, Cardiology market is expected to

reach $18 billion.

• Surgical procedures are growing at 12.0 %.

• Japan and South Korea lead MIS in APAC,

demand for MIS increasing in Singapore,

Malaysia, Australia and Thailand, driving devices

market.

• Local Asian companies of Japan, China, Korea

and Taiwan offering cost effective products.

Market Drivers

82.8 94.1 104.1 116.2 140.0

170.92 185.07

200.10 201.19

208.69

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2011 2012 2013 2014 2015

APAC ($ Billion)

Rest of the World ($ Billion)

APAC Medical Devices Local Asian companies spur growth through low cost products

Medical Devices Revenues, US$ Bn, 2011-2015

CAGR

14.0%

CAGR

5.1%

26.3 36.6 APAC Market Share

• APAC Refurbished market for imaging

equipments is expected to reach 9% growth

by 2015.

• System interoperability hinders new systems

adoption in hospitals.

Market Restraints

• Increased demand for health screening.

• Reverse innovation of customized Asian

medical imaging products to cater for

different culture and population.

• R & D in medical imaging allows

technological advancement - Molecular

Imaging, Drug therapy combined with

Ultrasound.

Market Drivers

Medical Imaging

A technological challenge, new vs refurbished …

Medical Imaging Revenues, US$ Bn, 2011-2015

26.7 32.0 APAC Market Share

8.8 9.8 11.0 12.2 13.4

24.04 25.00

26.19 27.54

28.49

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2011 2012 2013 2014 2015

APAC ($ Billion)

Rest of the World ($ Billion)

CAGR

11.2%

CAGR

4.3%

• System interoperability hinders market

growth.

• Too many small vendors offering HIT

solutions.

Market Restraints

• Quality, regulatory and performance

application growing at 11.0% CAGR.

• Patient and Revenue cycle management

related application will drive HIT with 10.3%

CAGR.

• Departmental Systems market size is

expected to be $ 875 million in 2011, growing

at 7.1%.

Market Drivers

Healthcare Information Technology APAC HIT growing at global pace of 9.0%

Healthcare IT Revenues, US$ Bn, 2011-2015

20.2 20.5 APAC Market Share

5.7 6.2 6.8 7.5 8.2

22.50 25.29

27.01 31.00

31.96

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2011 2012 2013 2014 2015

APAC ($ Billion)

Rest of the World ($ Billion)

CAGR

9.7%

CAGR

9.2%

Healthcare Delivery Market:

Rising middle income, medical tourism create impact

309

334

362

390

420

-

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015

CAGR 8.0%

APAC Healthcare Delivery Market Size

US$ Bn, 2011-2015

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

Market Drivers

• Aging & growing

Population

• Rise in chronic disease

• Medical Tourism

• Rising middle and

affluent income

population

• Manpower shortage

• Access disparity between

urban & rural regions

• Inability to meet demand of

healthcare services in smaller

cities and rural areas

Market Restraints

• 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

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

The Future of Healthcare . . . .

Linking Stakeholders From Different Industries

Community

Education Hospitality

Healthcare

Corporate Wellness

Medical Spa Preventive Wellness Medical Wellness Cosmetic Surgery Nutritional Alternative

Spa Fitness Beauty Nutritional

Assisted Lifestyle Retirement Homes Healthy Villages Wellness Villages

Primary

Courses

Secondary

Tertiary

Supportive Industries

Where to place your bets: 2012- 2015

Time

Gro

wth

Healthcare

manpower

Mobile

Healthcare

Hospital services

OTC, Traditional

pharmaceuticals,

branded generics

INNOVATION

TRIGGER SUPER

GROWTH LEADERSHIP

India China

S.Korea

Singapore Malaysia Vietnam

Source: Frost & Sullivan.

Medical devices,

biotech

Digital

Imaging

Taiwan

Distribution,

manufacturing

Australia

Japan

Monitoring and

diagnostics Philippines

Indonesia

Thailand

Tier2 and Tier3

Healthcare Service

Center development

New materials,

biotechnology

Specialty based hospitals

vs. Holistic wellness hospitals

Primary and Diagnostic

stand alone centers

Frost & Sullivan

An Active Contributor to Global HC Market

Development

The Frost & Sullivan Story

12

Pioneered Emerging Market

& Technology Research

• Global Footprint Begins

• Country Economic Research

• Market & Technical Research

• Best Practice Career Training

• MindXChange Events

Partnership Relationship

with Clients

• Growth Partnership Services

• GIL Global Events

• GIL University

• Growth Team Membership™

• Growth Consulting

Visionary Innovation

• Mega Trends Research

• CEO 360 Visionary Perspective

• GIL Think Tanks

• GIL Global Community

• Communities of Practice

What Makes Us Unique

13

All services aligned on growth to help clients develop and implement

innovative growth strategies

Continuous monitoring of industries and their convergence, giving

clients first mover advantage in emerging opportunities

More than 40 global offices ensure that clients gain global perspective

to mitigate risk and sustain long term growth

Proprietary Team Methodology integrates 7 critical research

perspectives to optimize growth investments

Career research and case studies for the CEOs’ Growth Team to ensure

growth strategy implementation at best practice levels

Close collaboration with clients in developing their research based

visionary perspective to drive GIL

Focused on Growth

Industry Coverage

Global Footprint

Career Best Practices

360 Degree Perspective

Visionary Innovation Partner

Healthcare – Areas of Expertise

Pharmaceuticals &

Biotech

CNS, Oncology, Diabetes,

Cardiology, Drug Delivery, Emerging Areas, Pipeline analysis, Biotech Oncology, Drug Delivery Biotechnology, Contract Manufacturing, Contract Research, Ophthalmic, Chronic Diseases

Medical Devices

Cardiovascular Devices Orthopedic Devices, Home Care,

Surgical & Infection Control Pdts, General Medical Devices, Hospital Supplies and Products

Wound Care/ Management Products

Healthcare and Life Sciences IT

Electronic Medical Records, HIS Clinical Information Systems, Telemedicine, Life sciences IT, Outsourcing, Healthcare Outsourcing, Clinical Solutions Managed Care Services, Medical Care Providers, Consumer-based Healthcare

Patient Monitoring

Cardiac Monitoring External Defibrillators Multi-Parameter Monitoring Temperature Monitoring Pulse Oximetry Remote Patient Monitoring Patient Monitoring IT Sleep Apnea Monitoring Glucose Monitoring Blood Pressure Monitoring

Drug Discovery & Clinical Diagnostics

Genomics, Proteomics, Cellomics, HTS, SNP, IVD, Genetic Testing, Molecular Diagnostics

Medical Imaging

PACS, MRI, Cardiac, CT, Ultrasound, PET, Nuclear Imaging, Core Imaging

Modalities Imaging Agents, Imaging Software, PACS & Imaging IT , Digital Imaging

Pharmaceuticals & Biotech

Cardiology, Hypertension,

Diabetes, Oncology, CNS, Pain Management, Respiratory, Women’s Health, Drug Delivery, Emerging Areas, Pipeline Analysis, Vaccines, Antibiotics

Healthcare Services

Hospital Services, Physicians, Key Opinion Leaders study, Diagnostic centres, Healthcare Institutions,Pharma medical education.

Financial Services

IPO, Mergers and

Acquisition, Strategic Partnership, Business Matching

Growth Tools and Methodologies Our Thought Leadership on Growth

CEO 360 Perspective

Market Opportunities

Landscape

Corporate & Growth Objective

s

Growth Execution Capabilities

External Internal

Internal

GROWTH ZONE

Growth Acceleration System Growth Excellence Matrix

Growth Workshops Growth Pipeline Growth Environment

10 Growth Processes Best Practices on Implementation Growth Diagnostic Blueprint

Frost & Sullivan’s Growth Partnership Services Programme:

3 Core Pillars

From Macro to Micro: How To Take Mega Trends from Information to

Strategy Implementation

Sub Trend A Sub Layer of Trends that

Has Wide Ranging Impact

Mega Trend Selected Trends That

Impact Your Business

And Markets

Analysis of

Opportunities

and Unmet

Needs

Impact on

Future Product/

Technology

Impact to Your

Industry Visualising The Roadmap Of

These Critical Forces Through

Scenario Building and Macro

Economic Forecasts

Example: Urbanization,

Satellites

Example: Three concepts of

urbanization will emerge:

megacities, mega regions and

mega corridors. Smart Cities.

Civilian satellites means high

speed broadband, wireless and 4G

and free wi-fi in public places/cities

Example: New Product

Opportunity - New Mega City

Cars, Car sharing,

New Technology Opportunities –

Connected car , e.g. Internet

Radio

Example: Mega City

electric cars with small

turning radius,

autonomous parking in

busy cities, Facebook on

wheels, seamless

switching from home to

car

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

Macro Micro

For further information, please contact

Dewi Nuraini

Corporate Communications – Indonesia

P: +6221 5710838

M: +62 856 7800 792

E: [email protected]