Healthcare is one of the greatest achievements of humans. The growth in the healthcare industry and advancement in medical sciences has blessed billions with a better life and health, and it is the highlighted industry of 2020 because of COVID (that’s why the article, duh!).
People have been taking healthcare seriously more than ever, they are more health-conscious, focusing on fitness and nutrients while taking precautions.
Healthcare industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 5% between 2019 – 2023 according to a report by Deloitte which is double when compared to 2.7% between 2014 – 2018.
Healthcare employment is expected to grow by 26% by 2022. The global home healthcare market size was valued at USD 281.8 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 7.9% from 2020 to 2027These numbers are already there, COVID just gave them a boost and limelight.
Why Healthcare industry will grow?
It’s easy to throw numbers and say how much will it grow, but we need to understand the ‘why’ as well? Baby Boomers are are growing old (of course), the number of Baby Boomers aged 65 and older is projected to grow by about 40 percent between 2012 and 2022—the fastest of any age group so far (report by Healthcare Management).
These people will need more health support which will boost the industry in many aspects, like jobs, home-care, medical devices, insurances, pharmaceuticals and a lot more.
Apart from this, population is still increasing at an alarming rate (we are all at home), increased population will also generate more demand for healthcare; countries are increasing their economic power to make sure they can maintain the balance. However, Global healthcare spending as a share of GDP will likely remain at around 10.2% through 2023, equal to 2018’s ratio, but there will be overall increase in GDP’s.
Around 450 million people suffer from mental disorders, making it the leading cause of illness and disability, that’s almost 7% of world population and it’s literally trending.
What are the top issues healthcare industry is facing?
- Expanding issues – Although demand and jobs both are increasing, there’s a shortage of labor. Younger generations doesn’t seem to be much interested in working in the healthcare industry.
- High rates of Aging and Child Birth – As mentioned earlier, both extremes as stretching further out and both need special care.
- Increase in Chronic illness patients – These people in most situations require a lot of resources, which puts pressure in overall structure.
- Increased cost in Med-tech – Devices are definitely getting better and more sophisticated, which requires a lot more research and manpower to make.
- Costly Infrastructure – Opening a hospital is an expensive deal, factors like real-estate, medical devices, staff, etc, all are very expensive.
Stakeholders are tackling these problems by adopting to new methods. They are adopting Value based care, adopting Universal health care system using Population Health Management to provide better facilities. Many countries have or are adopting Public-Private Partnerships to reduce the costs.
Virtual Health Care
AI powered chatbots, Video consultations, physicians checking health remotely via controlled devices are some of the steps industry has taken to make things better and they are working well. Blockchain and Analytics are becoming a major part of the virtual revolution, organizations are not just storing the data but are using it to find insights as well.
These steps will help in preventive and predictive care of patients, providing them cheaper care, cost-effective and less invasive treatments and therapies.
Overall, there’s a lot of scope in healthcare industry.
- Aging population and babies need extra care.
- Chronic illness patients needs special treatment.
- Increasing demand in home-care.
- High Costs of Medical Devices
- Increasing demand in Virtual Healthcare
You can do a thorough research and read in detail about trend in healthcare industry here, here and here. If you are interested in companies or technologies that are growing/trending, checkout our other blog posts.
We wish you a healthy life.