Download - Health Market Review 2016
HealthMarket Review
Welltory
Total healthcare market equals to
$12 T
Healthcare is a huge industry
Pharmaceutical industry -$1 trillion
Doctors and therapists – $4,7 trillion
Medical equipment, tests, nursing, hospitals and so on
Wellness - $3.4 trillion
And it grows every year
Healthcare market grows gradually due to population ageing. Costs of healthcare increase as well. In US it is predicted to take 20% of the entire economy by 2024. On a global scale these costs total to about 10% and are growing slower.
1980-2013 1995-2014
And it grows every year
Vitamins and supplements will grow by 58%
Natural cosmetics - by 74%
Fitness industry has grown by $10 billion over last 5 years
Many people can't pay their healthcare bills so they want to prevent getting sick
Inability to cover healthcare costs became number 1 bankruptsy reason in the US in 2013 (around 60% of all filings, more that 600,000 people).
So to spend less money people want to prevent getting sick: lead healthier lifestyle and use preventive helthcare to track body changes on earlier stages.
Preventive healthcare is expected to grow from $72.8 bln in 2013 to $144.8 bln by 2020.
Vitamins and supplements will grow by 58%
Natural cosmetics - by 74%
Fitness industry grew by $10 billion over last 5 years
Many people can't pay their healthcare bills so they want to prevent getting sick
$72.8 bln2013
$144.8 bln2020
Returns on preventive healthcare investments reach
$5,6 for $1 invested.
So let's take a closer look at someof these preventive measures.
Wellness — is about leading and maintaining a healthy lifestyle.
$3,4 T
Fitness - $446 blnHealthy food -$574 bln
Corporate wellness - $41 bln
Wellness-facilities -$100 bln
Wellness-tourism -$494 bln
Beauty and anti-aging - $1 TSPA and thermal baths -
$144 bln
Personalized and preventive healthcare - $433 bln
Complementary and alternative healthcare - $187 bln
Healthcare consists of many componentsbut some of them are inefficient
Market is already big, grows by 7,7% anually and equals to
Healthcare consists of many componentsbut some of them are inefficient
The problem is that many treatment approaches don't have enough scientific proof of its effieincy on human health
So how do we prevent getting sick?
We find efficient treatmentmethods based on data
Fitness-tracker Jawbone UP2
Tracks amount of steps, sleep phases
There are lots of existing sensors that can track data about...
What happens to a human body
What we feel What happens around us
Vessyl smart cup
Tracks hydration level, calories and caffeine
AliveCor smartphone cover
Makes high-precision ECG and pulse measures
Smart clothes OM Signal
Measures ECG, breath, stress levels
Lapka PEM sensor set
Measures electro-magnetic field, radiation, nitrates and humidity
Air Quality Egg set of sensors
Measures NO2 and CO levels
And the amount of sensor users will grow anually
12
25 bln - number of connected things used in 2020
$41,8 bln – mHealth device marketin 2023
$19,6 bln – environment monitoring device market by 2019
And grow even more
By 2020 the number of wearables will grow 3.3 times, while the percentage of health and actvity trackers will remain almost the same.
And device market will continue to grow
13
$41.8 bln – mHealth device market in 2023
$19.6 bln – environment monitoring device market by 2019
50% - lifestyle20% - environment
20% - genetics10% - medical healthcare
70%30%
Is lifestyle
Lifestyle and environment are more important for human health than medicine
Health is not just about medical care. Changing your lifestyle will make larger impact on your health. So tracking lifestyle data makes sense.
A lot of health data has already become trackable and managable
Genetics
Environment
Human health
Genetic test results
Data from systems like:Smart home,
Smart city
Data from wearables, smartphone apps, Internet of Things
Data
Lifestyle
A recent research shows that large amounts of health and behaviour data tracked through mobile devices can only be used to raise people's awareness about what happens.
To make meaningful decisions based on that data it should be enriched with context and expertise.
However, the data is enough to build predictive models. Full personalization makes any health component managable.
So health industry is becoming transformed by this data into a Digital Health industry
Music industry
Education
Investments
Yesterday
Adapted for a user — you can choose and listen whatever
and wherever you want
New business models including online education
Tracks data about every website visitor, comment,
behaviour
Managed based on precise data
Health & Wellness
Today Tomorrow
Marketing
With the rise of digital technologies many traditional industries were transformed to meet users' demand.
Health industry starts going through a similar transformation as it's becoming easier to get data and needs of each particular person.
So health industry is becoming transformed by this data into a Digital Health industry
The effect of any pill will be predictable for each patient based on his/her health data. It could then be printed out individually.
Research will become data modelling, its costs will drop significantly, it will become exploratory.
A computer will know more than any doctor whose knowledge will become outdated really fast.
Investments in Digital Health industry grow every year
A proportion of invesments made into Digital Health startups rapidly increases
Venture Funding2014-H1 2016
Invesmtens top $4 bln for a 3rd year in a row
Amount of digital health startup investments exceeded $4.3 bln a year for last 2 years and the same trend is going strong in 2016
Submarket investments are also impressive
Investment volumes for the H1 2016 almost equal to 50% of collective investments for 2011-2015
M&A-activity is very intense
In 2015 and 2016 the majority of acquired companies comes from Digital Health sector
Experts believe in digital health industry
"Doctors can be replaced by software –80% of them can. I'd much rather have a good machine learning system diagnose my disease than the median or average doctor."
Vinod Khosla – Khosla Ventures
“Digital Health feels like the PC industry in the early '80's.”
John Sculley – Former CEO of Apple and PepsiCo
Experts believe in digital health industry
Personalized Preventive
PredictiveEverything will be based on facts and could be proven for any given person or a group.
ParticipatoryFinally people will become more demanding and aware.
Healthcare approach will be changed dramatically based on human data
People want NOT to get fat, NOT to get stressed, NOT to get sick, NOT to get old.
People with their goals, motives, behaviour, environment are totally different.
People already have problems that can be solved based on data
30mln
Take anti-depressants
37mln
Suffer from migraines
40 mln
Suffer from insomnia
45mln 117 mln
Are dieting
Have chronic deseases
Only among adults in the US:
In the US alone more than 100 mln people suffer from these health problems. There are over 600 mln of them globally.
Only among adults in the US:
Available data can already help people take care of their healh more efficiently
44 mln - balance their healthy diet, weight control and sport activities
46 mln fans of everything «organic» and «natural».
56 mln – actively buying supplements and vitamins
44
56
46
In the US alone about 146 mln people take care about their health. There are more than 876 mln of them globally.
Users need help interpreting and researching data on themselved to get healthier
444 mln
311 mln
53 mln
People having problems and/or needs about their health (~740 mln)
Active core audience17% Already tracking their health with apps or devices
Motivated audience70% Interested in buying wearables
Potential audience60% Smartphone users
Companies need help in making their employees more efficient
35 mln
14 mln
3,6 mln
Companies want to get more data about employees, to reduce costs and improve their products (~45 mln)
8% companies are getting the data and are ready to use it
32% companies are ready in install these systems
77% want to get data through people analytics systems to make HR decisions based on this data
People already spend hundreds of dollars on healthier lifestyle
The price for a personal coach in the US varies from $10 to $50 an hour. In some cities it gets to $100.
Avarage price of a gym pass without a coach fee - $58
A price for a personalwellness coach - from $25 to $100 an hour or $50,000 - $100,000 a year
Healthy food expendituresvary from $50 to $350 a month
Amount spent on appsequals to $35 a year
People spend about $1200 a year on gadgets and electronics
Companies already spend thousands of dollars per person to monitor and increase work efficiency
Medical insurance cost companies about $1,077 per employee a year
Companies spend from $2,112 to $4,434 per employee a year) on HR systems that help analyze work efficiency
Corporate wellness programscost companies $693 per employee a year
So everyone needs more data to take care of their health cheaper and more effective
$0,0005 – price for basic information about a person. $0,26 –price for enriched data with illnesses and medications
In the US along marketing companies and pharmaceutical companies spend $25 mln a year to buy data about retail consumers
One of the largest data-brokers Acxiom earned $1.1 bln in 2011 selling data about 144 mln households
Healthcare data analytics market volume is evaluated at $5,8 bln and is predicted to reach $18,7 bln by 2020. Total user information market volume was evaluated in 2011 at $300 bln
Winning strategy is to make sense of these large amounts of data
Analize dataMake senseHelp people
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