Key drivers of growth in healthcare

The global healthcare sector offers significant growth potential due to shifting global demographics, social changes, research & development and innovation supporting increased demand in healthcare-related products and services over the long term.

There are three key drivers of growth for the global healthcare sector which will collectively create higher and sustainable levels of healthcare expenditure globally.

The world population is projected to reach 8.5 billion in 2030, and to increase further to 9.7 billion in 2050. The number of older persons (people aged 60 or over) is projected to grow to more than 1.4 billion, significantly increasing the need for healthcare and healthcare companies. In the US, individual life-time healthcare expenditures are around US$500,000 with more than half spent during the senior years7.

The world’s population is getting older and as people age the consequences of a lifetime of poor lifestyle choices for millions is taking a toll on their health, driving health care expenditures higher. In addition, people with chronic conditions are intensive users of health services, and the associated costs of care tend to be much higher. For example, 70% of total health funding in England is spent on services for 30% of the population that have long-term conditions8.

Developed markets spend substantially more on healthcare compared to their emerging market counterparts. As the economies of the world’s emerging markets grow and develop, so too will the requirements for healthcare. Given 83% of the world’s population lives in emerging markets9, the investment requirement for healthcare products and services is significant as these countries evolve economically.