Telehealth and remote monitoring are key factors driving growth, according to Frost & Sullivan analysis.
A worldwide surge in virtual care is driving growth in the global healthcare market. Digital health applications for telehealth and remote monitoring could help push it past an "optimistic" projection of $2.6 trillion by 2025, according to a new analysis by Santa Clara, California-based consulting firm Frost & Sullivan.
In late 2019, the consulting firm projected the global healthcare market would cross the $2 trillion mark during 2020.
In a report released this week, Developing Innovative ROI Streams and Patient-centric Virtual Care Approaches will Shape the Global Healthcare Industry, Outlook 2021, the company predicted the healthcare market would continue to expand at a compound annual growth rate of 6.3%. Sectors encompassed in the total healthcare market include pharmaceuticals and biotechnology, in-vitro diagnostics, advanced medical technologies, medical imaging and informatics, and digital health.
The "analysis finds that the emergence of the anytime-anywhere care concept with the COVID-19 outbreak has transformed the healthcare sector worldwide, resulting in a surge in demand for digital health applications—especially telehealth and remote patient monitoring," according to a news release.
Consumer acceptance of digital healthcare will drive providers to focus on building efficiencies and managing scalability, as well as the emergence of innovative business models in the next few years. The consulting firm outlined the following growth opportunities:
- Real-world, data-supported approaches to increase the adoption of immuno-oncology (I-O) agents into the standard of care.
- Digital point-of-care testing (POCT) platforms for infectious disease testing.
- Artificial intelligence in imaging and virtual platforms in high-acuity care to optimize workflow and improve clinical outcomes.
- Expansion of telehealth services toward virtual care across the care continuum.
“The new vision for healthcare in 2021 will focus on using digital means to ensure access, quality, and affordability, in addition to strategies designed to overcome the losses sustained in 2020," said Chandni Mathur, healthcare & life sciences senior industry analyst at Frost & Sullivan. "At the same time, it is important to ensure healthcare remains precise, preventive, and outcome-based in the promotion of social and financial inclusion.”
Interoperability and data security will also stimulate industry transformation. Additionally, Chandni said, "non-traditional healthcare players, such as Amazon, Apple, and Microsoft will play a key role in this transformation with high penetration in the virtual care space.”
The analyses is available through the Frost & Sullivan Leadership Council.
“Non-traditional healthcare players, such as Amazon, Apple, and Microsoft will play a key role in this transformation with high penetration in the virtual care space.”
Chandni Mathur, healthcare & life sciences senior industry analyst, Frost & Sullivan
Mandy Roth is the innovations editor at HealthLeaders.
Digital health is a driving force in global healthcare market growth, with a projected 6.3% compound annual growth rate.
Providers need to focus on building efficiencies and managing scalability.
Innovative business models will emerge in the next few years.