Download - What’s Hot in the Healthcare Industry
What’s Hot in the Healthcare Industry
Trends, Opportunities, and Challenges Through the Eyes of Survey Participants
29837
Dear Sir/Madam,
Thank you for taking the time to complete Frost & Sullivan’s inaugural ‘2013 Search for Growth’ survey. We received 1,835 completes from executives in more than 40 countries who selected, in total, more than 20,000 hot topics. Frost & Sullivan’s research team used the findings, and your open text feedback, to select and prioritise the topics that were deemed to be poised for the greatest growth and have since conducted (or have in the pipeline) primary research on over 70% of the topics that you selected. As a token of our thanks, we have put together some insights for you from the survey on each vertical market. We also teamed up with the design consultancy Orb to create an infographic that highlights the top 3 growth areas by vertical market and provides estimated aggregate growth rates for the hot spots in those markets. If you would like to speak with our analysts about the findings, or any of the markets forecast to grow at the highest rates, please send me an email and I will arrange it for you.
We also had 5 iPad winners and sent copies of the Mega Trends book to the first 100 respondents— thanks to you all also, we trust you liked the prizes.
After the excellent feedback we received on the last survey, we are going to repeat it to provide you with benchmarks on market growth. We will also benchmark your estimates of the growth rates with those of our research team, which we are particularly excited about.So thanks again for your time, and if you have any questions, please do get in touch.
Kind regards,Noel Anderson
39837
Contents
Section Slide Number
Survey Coverage 4
Healthcare Market Outlook 9
Healthcare—Convergence with Other Industries 16
Healthcare—What Participants Saw as Hot Topics in 2013 20
Three Big Predictions for the Rest of the Decade 22
The Frost & Sullivan Story 24
49837
Survey Coverage
59837
9% 11% 2% 8% 10% 9%
6%7%
9% 1% 3%
16% 8%
2%
24%
22%12%
9%10%
7%
11%
9%
6%
10%7%
11%
12%
16%
9%
14%14%
15%
13%
13%
13%
5%4%
5%
4%
6%
21%24%
59%
9%19%
34%
1% 2% 4% 1% 2% 1%
Measurement & Instrumentation
Information & Communications Technologies
Industrial Automation & Process Control
Healthcare
Energy & Power Systems
Chemicals, Materials & Food
Automotive & Transportation (including Logistics)
Aerospace & Defence
Other
Industry—By Region
A key enabler of growth, healthcare pervades almost all aspects of the production process and service provision across Frost & Sullivan’s research coverage areas.
Source: Frost & Sullivan
EIA: Europe, Israel, and AfricaMENASA: Middle East, North Africa, and South AfricaAPAC: Asia-Pacific
69837
GlossaryM&I: Measurement & InstrumentationICT: Information & Communication TechnologiesHC: Healthcare EPS: Energy & Power SystemsA&D: Aerospace & Defence BFS: Business & Financial ServicesA&T: Automotive & Transportation IPC: Industrial Automation & Process ControlCMF: Chemicals, Materials & Food EBT: Environmental & Building Technology
CEO/Leadership 6%
R&D/Innovation
18%
SalesLeadership
11%
Market Research 8%
Marketing21%
Corporate Strategy
11%
Other 11%
Corporate De-velopment 6%Investors/Finance 2%
Competitive Intelli-gence 5%
Industry and Function
In line with the importance of Frost & Sullivan’s core business units, the A&T, HC, and ICT industries have the highest sample share.
A&D 6%
A&T16%
CMF 9%
EPS 10%
EBT 4%BFS
5%
HC 14%
IPC 5%
ICT21%
M&I 1%
Other 9%
Industry Function in Organisation
Source: Frost & Sullivan
79837
21% 16% 29% 20% 23% 27%
23% 22%27%
27% 18% 20%
56% 62%44% 53% 59% 53%
Small (annual revenue up to USD 100 million)
Medium (annual revenue of USD 100 million up to USD 1 billion)
Large (annual revenue over USD 1 billion)
Overall N. America L. America EIA MENASA APACn=1410 n=464 n=54 n=508 n=135 n=258
Company Size—By Region
N=1410 (excl. NA/Don’t know n=410)Q96 What are your expected annual revenues globally in 2012 in US dollars?
Of respondents, 56% work in large organizations with over $1 billion annual revenues. In North America, the share of large companies is the highest.
Company Size:
Source: Frost & Sullivan
Company Size by Region, Global, 2012
89837
Overall (n=1,820)
A&D(n=113)
A&T(n=287)
CMF(n=171)
EPS(n=185)
EBT(n=71)
HC(n=247)
IPC(n=88)
ICT(n=383)
M&I(n=26)
2.2 2.31.9
2.52.1
2.6
1.6
3
2.1
3.8
Industries Tracked in 2013
Respondents track an average of 2.2 industries. HC, ICT, A&T, and EPS will be the most tracked industries in 2013.
Number of Industries Tracked in 2013
By Function
CEO/Leadership
(n=118)
R&D/Innovation
(n=334)
Sales Leadership
(n=209)
Corporate Development
(n=105)
Market Research(n=148)
Competitive Intelligence
(n=83)
Investors/Finance(n=43)
Marketing(n=375)
Corporate Strategy(n=197)
2.3 2.3 2.2 2.3 2.2 2.0 2.5 2.1 2.2
By Region
North America(n=556)
Latin America(n=354)
EIA(n=690)
MENASA(n=162)
APAC(n=358)
2.2 2.4 2.1 2.6 2.2
Source: Frost & Sullivan
99837
Healthcare Market Outlook
109837
Last Decade Current Decade Next Decade
Types of Companies
Market Dynamics
Main Focus
Revenue
Pharmaceuticals—Business Outlook
Approximately $328 billion (pharma) (total drugs market - $353 billion)
Approximately $766 billion (pharma)
(total drugs market - $830 billion)
Approximately $1,350 billion (pharma)(total drugs market - $ 1,487 billion)
Focus was on better screening of drug candidates and faster market launch because the clinical development process is risky and lengthy.
Commercialization of drug candidates is the main focus. Non-core competencies, including activities such as drug discovery, drug development (early stage clinical development), and manufacturing, are being outsourced.
Convergence with drug discovery, drug development, and drug delivery
M&As and alliances with pharmaceutical firms
Very high ROI for successful drug candidates (those with successful market launch and positive clinical trial data on efficacy and safety), for example, Pfizer's Lipitor (Atorvastatin)
M&As and alliances with biotech firms
Acquisition, and alliances with drug discovery, drug development companies, and academic institutions reduces the growing R&D productivity gap for the pharmaceutical companies. De-risking of R&D and drug development with cost-effective model is the main driver for the growth of pharmaceutical firms.
M&As and alliances with drug discovery, drug Development, and drug delivery companies
Focus is on less competitive, niche disease segments, and; thereby, shifting away from the blockbuster model.
Big pharma, biopharmaceutical companies, small and medium pharmaceutical firms, CROs, CMOs, generics
Big pharma, small and medium pharmaceutical companies, CMOs, CROs, generics
Integrated companies
Source: Frost & Sullivan
119837
Last Decade Current Decade Next Decade
Types of Companies
Market Dynamics
Main Focus
Revenue
Biotechnology—Business Outlook
Approximately $25 billion Approximately $63 billion Approximately $136 billion
Main focus was on drug discovery, leveraged by a healthy funding scenario.
Focus is on niche disease segments such as cancer and autoimmune diseases.
Personalized medicine - more efficient drug development process, based on the research on disease pathophysiology and genetic risk factors
The high growth rate and increasing number of licensing and collaboration deals in the biotech industry attracted investments, not only from pharmaceutical companies but also from investment banks and VCs due to the high future prospects of the industry. Moreover, increased funding and support from the government were the other key drivers for growth of the biotechnology industry.
Lucrative disease segments with premium pricing opportunities such as oncology are the main growth driver. Success of various ,onoclonal antibodies (mAb) such as Rituxan/ MabThera (rituximab) and Avastin (bevacizumab) is a key impetus for growth.
Potential high ROI on personalized medicine will be the main growth driver.
Drug discovery, biopharmaceutical companies, biotech firms, CROs, CMOs, and biosimilar companies
Drug discovery, drug development companies, CROs, CMOs, and biotech firms
Integrated companies
Source: Frost & Sullivan
129837
Current Decade Next Decade
Types of Companies
Market Dynamics
Main Focus
Revenue
Clinical Diagnostics—Business Outlook
$24,504.2 Million $40,208.3 Million $78,234.7 Million
Immunochemistry and clinical microbiology were the largest segments mainly because the human genome had just been sequenced and; therefore, molecular techniques were under development or on their way to the market. Immunochemistry and culture-based techniques were the onlyavailable technologies.
As opposed to tests that needed to be scaled up to be performed at the central lab, tests now need to be scaled down to be performed at the point of care, but at the cost of a lab test. Molecular diagnostics are now recognised as a very effective alternative to culture- based and ELISA-based techniques.
Personalised medicine will be mainstream, and technologies that will enable the personalisation of medicine, such as molecular diagnostics and point of care testing, will grow. Companion diagnostics will be a main area with significant revenue, although it is currently not significant enough to form a part of the IVD market.
There was need for a validated technique that could be scaled up to the volumes of central laboratories, which offered actionable results at economic costs. EIA and culture-based were best-suited at that time and; thus’ were the most widely used techniques.
Need for speed and need at the point-of care are the key drivers of today. Biomarkers-based diagnostics are driving growth in many segments, such as molecular diagnostics, point of care, and tissue diagnostics.
More personalised and quicker diagnosis at the point of need will continue to be key drivers in 2020. The transition towards personalised medicine will lead to the generation of significant quantities of data per patient, making information storage and management more critical in the future.
Laterally integrated diagnostic companies are composed of biomarker companies, OEM manufacturers, and the present diagnostic leviathans. Leaders in data storage and management in other fields such as Google could potentially be expected to enter the healthcare space in a big way.
EIA reagents and equipment suppliers and reagent suppliers for both EIA and culture techniques such as Abbott, Bio-Rad,Bayer, Roche, Beckman Coulter, bioMerieux, Sigma Aldrich
Diagnostic companies with multiple areas of focus include Roche, Siemens, J&J, Abbott, Beckman Coulter, Bayer, bioMerieux, Sysmex, Alere, Becton Dickinson, Instrumentation Laboratory, Qiagen, Radiometer, and Gen-Probe.
Last Decade
Source: Frost & Sullivan
139837
Last Decade Current Decade Next Decade
Types of Companies
MarketDynamics
Main Focus
Revenue
Medical Devices—Business Outlook
$153.40 Billion $271.55 Billion $509.25 Billion
More emphasis on quality of treatmentand cure because treatment time wasnever a constraint. Invasive procedureswere the golden standard.
Faster diagnosis and prompt therapy along with patient safety using minimalinvasive technologies
Minimal invasive technologies becoming the preferred choice; therefore, reducing therapy duration and post-operative complications.
Consistently increasing number of chroniccardiovascular diseases led to most pertinent surgical intervention when absolutely required.
Improved diagnostic imaging capabilities coupled with advanced minimally invasive technologies has led to increased procedural volume and product uptake.
Advancement in minimally invasive technology in the form of fully automated, robot-assisted, minimally invasive cardiac surgery and continuous diagnostic pre-operative imaging
Presence of individual imaging, devices,and pharmaceutical companies, for example, Johnson and Johnson, GE Healthcare, and Merck and Co.
Individual companies have started moving towards intersection, for example, BD and Novartis.
A definite intersection of applications and product line between established companies. For instance, a leading vendor from the cardiac imaging industry collaborating with participants from the cardiac devices and consumables industries.
Source: Frost & Sullivan
149837
ProjectedImpact on the
HealthcareIndustry
High Impact
Low Impact
CertaintyLow High
2010 – 2020
Top 10 Global Healthcare Trends
Monoclonal Antibodies
Cancer Vaccines
Gene Therapy
Transcatheter Valves
Hygiene Compliance Monitoring
Source: Frost & Sullivan
159837
Global Perspective—Life Sciences Industry Hotspots
Central and Eastern Europe
China
India
Brazil
• API manufacturing hub• Increasing competency in R&D outsourcing• Anti-infectives and cardiovascular drugs –
fastest-growing markets• Improved IP laws – potentially attractive
climate for FDI
• US-Singapore FTA—Asia-Pacific manufacturing hub
• Highly competent facilities for clinical trials and drug development
• Favourable investment policies—Asia-Pacific headquarters of major foreign pharma companies
• Highly skilled labor and low costs—attractive market for partnerships (CRO, CMO) (APIs)
• Pharmaceutical companies with global presence
• US FDA approved labs are preferred destinations for R&D outsourcing.
• Weak IP protection is a concern.
• High unmet needs in cardiovascular and respiratory disease treatments• Increasing private healthcare expenditure—co-payments are on the rise• Markets are dependent on parallel imports for innovative medicines.• Poland, Czech, and Hungary demonstrating healthy R&D climate.
• Approval of ‘generics law’—patients choose between branded and generic drugs
• Marketing strategy focused on patients, moving away from physicians
• Emerging market with large potential for R&D outsourcing
• Latin American hub for FDI and exports to neighboring nations
• Government policies favour generics use, so branded drugs’ revenues are low.
• Recognized potential for CRO and CMO growth is still in development phase.
Singapore
Argentina
Source: Frost & Sullivan
169837
Healthcare—Convergence with Other Industries
Key Industries Tracked in Addition to Company’s Core Markets, 2013
A&D = Aerospace & DefenceA&T = Automotive & TransportationCMF = Chemicals, Materials & FoodEPS = Energy & Power SuppliesEBT = Environment & Building Technologies
HC = HealthcareIPC = Industry & Process ControlICT = Information & Communication TechnologyM&I = Measurement & Instrumentation
Industry Cross-interest 1 Cross-interest 2 Cross-interest 3 n
A&D ICT 39% A&T 26% EPS 20% 111
A&T EPS 25% ICT 24% EBT 9% 282
CMF EPS 37% A&T 36% EBT 27% 167
EPS EBT 24% A&T 20% IPC 18% 180
EBT EPS 44% ICT 26% CMF 21% 57
HC ICT 18% CMF 15% M&I 8% 238
IPC EPS 42% A&T 26% CMF 26% 78
ICT HC 23% A&T 19% EPS 19% 371
M&I A&T 42% EPS 38% IPC 38% 26
Source: Frost & Sullivan
179837
Healthcare—Convergence with Other Industries
Key Areas of Technology and Business Model Convergence
Connected Health
Life Sciences
Advanced Medical Technology
ICT CMF
Robotic Diagnostics, Automation - Lab-on-Chip, LIMS, Robotic
Surgery
M&I
Active Pharmaceutical
Ingredients, Excipients and Intermediates, Drug Delivery,
Device Coatings
mHealth, Health Information Exchange Systems,
Chronic Disease Management
Healthcare
IPC A&T
Supply Chain, Warehousing,
Freight Forwarding Bulk
Drugs, Chemicals,
Biologics, and Finished Dosage.
Cryostorage of Devices
Valves, Heat Exchangers, Centrifuges,
Dryers, Bioreactor
Source: Frost & Sullivan
189837
Interest in Mega Trends
Overall (n=1820)
A&D
A&T
CMF
EPS
EBT
HC
IPC
ICT
M&I
73%
66%
73%
81%
76%
77%
67%
64%
75%
77%
22%
23%
23%
17%
19%
23%
27%
31%
20%
12%
5%
11%
4%
2%
4%
6%
5%
4%
12%
Interested Undecided Not interested
A&D = Aerospace & DefenceA&T = Automotive & TransportationCMF = Chemicals, Materials & FoodEPS = Energy & Power SuppliesEBT = Environment & Building Technologies
HC = HealthcareIPC = Industry & Process ControlICT = Information & Communication TechnologyM&I = Measurement & Instrumentation
Source: Frost & Sullivan
199837
Ranking of Mega TrendsHealth, wellness, and well-being is the highest ranked Mega Trend.
New Business Models: Value for Many
Future of Mobility
Social Trends
Beyond BRIC: The Next Game Changers
Connectivity and Convergence
Future Infrastructure Development
Smart is the New Green
Health, Wellness, and Well-being
Urbanization: City as a Customer
Innovating to Zero
Bricks and Clicks
53%
51%
44%
43%
42%
40%
38%
31%
29%
27%
11%
51%
51%
37%
62%
44%
38%
37%
15%
30%
30%
10%
45%
73%
45%
45%
45%
42%
35%
18%
38%
25%
10%
47%
37%
37%
50%
18%
40%
53%
38%
37%
42%
10%
50%
34%
31%
43%
33%
60%
55%
12%
33%
26%
14%
46%
24%
41%
39%
44%
44%
59%
27%
49%
32%
12%
60%
38%
52%
43%
39%
23%
18%
81%
14%
23%
8%
48%
50%
24%
43%
43%
36%
38%
22%
33%
26%
9%
62%
74%
54%
30%
70%
40%
25%
19%
20%
19%
10%
43%
29%
14%
57%
21%
43%
29%
21%
7%
21%
7%
Overall A&D A&T CMF EPS EBT HC IPC ICT M&I
A&D = Aerospace & DefenceA&T = Automotive & TransportationCMF = Chemicals, Materials & FoodEPS = Energy & Power SuppliesEBT = Environment & Building Technologies
HC = HealthcareIPC = Industry & Process ControlICT = Information & Communication TechnologyM&I = Measurement & Instrumentation
Source: Frost & Sullivan
209837
Healthcare—What Participants Saw as Hot Topics in 2013
Rank Market Topic % of Respondents Nominating as Hottest Topic
1 Mobility in Healthcare/mHealth 51%
2 Cloud in Healthcare: Current Issues 45%
3 Regulatory Environments 44%
4 Cancer Market Outlook 39%
5 Remote Monitoring 38%
6 Drug Delivery Market 35%
7 Patient and Consumer Engagement 32%
8 Healthcare Dashboards 31%
9 Electronic Health Records/Electronic Medical Records 31%
10 Growth Drivers Impacting the Medical Devices Segments 30%
11 Drug Discovery Research Outsourcing Market 28%
12 Homecare Market Trends - Demand, Addressable Segments, Infrastructure, and Policy 25%
13 Video Telemedicine 24%
14 Cardiovascular Therapeutics - Dyslipidemia/CHD Prevention 24%
15 Changing Profiles of Influencers and Decision-makers Impacting Medical Device Choice 22%
Healthcare: Identification of Hot Topics, Global, 2013
Source: Frost & Sullivan
219837
Why is mHealth, Cloud in Healthcare and Regulatory Environment considered as Hot Topics by Survey Participants?
• The unprecedented spread of mobile technologies as well as advancements in their innovative application to address health priorities has evolved into a new field known as mHealth (mobileHealth). It is largely supported by mobile devices, such as mobile phones, patient monitoring devices, personal digital assistants (PDAs), and other wireless devices. The penetration prospects of mHealth technologies is significant in the following areas: wireless vital signs monitoring, location-aware tele-monitoring systems, and Bluetooth wireless technology-enabled health trackers. It is an exciting area of opportunity for healthcare growth and will provide innovative solutions for stakeholders, both providers and patients alike, across the spectrum.
• As more healthcare IT and patient monitoring tools are integrated, every hospital facility will eventually have to acquire a fully-enterprise wireless solution. The most innovative mobile healthcare solutions that best meet pressing healthcare needs will be adopted as the gold standard.
• Enterprise-wide healthcare informatics will improve quality of medical services and efficiency of operations while reducing expenditures. Cloud computing is considered to be a key enabler for enterprise-wide solutions. Implementing cloud computing technologies appropriately can help healthcare providers improve the quality of medical services and the efficiency of operations, share information across geographic locations, and manage expenditures. The concept can be applied in a variety of ways, including data storage and data loss prevention, maintaining patient information records, and authorized sharing of information.
• The advantages that cloud computing provides can change the dynamics of the healthcare informatics industry over time. The need for efficient sharing of information across locations in a synchronised manner would be a key driver for cloud computing in healthcare.
• Recent healthcare reforms and policy initiatives across many countries emphasises quality of care more than quantity. In the absence of a sufficient proof of clinical benefit, reimbursements may pose a major hurdle.
Ho
t To
pic
s—F
acto
rs H
igh
lig
hti
ng
Im
po
rtan
ce o
f To
pic
s
mH
ealt
hC
lou
d i
n
Hea
lth
care
Reg
ula
tory
E
nvi
ron
men
t
Source: Frost & Sullivan
229837
Three Big Predictions
2The healthcare and life sciences industry will consolidate further in this decade with many big pharma companies seeking alternatives to the blockbuster model.
3
1
As healthcare is geared towards a personalized medicine model, companion diagnostics will alter drug development and the commercialization process of drug candidates. Combining biomarkers and drugs will result in enhanced therapeutic efficacy and safety.
The rise of new technologies capable of integrating medical devices into a connected platform enhances the functionality of devices, reduces the man power burden, and minimizes errors.
Source: Frost & Sullivan
239837
Frost & Sullivan takes no responsibility for any incorrect information supplied to us by manufacturers or users.
Quantitative market information is based primarily on interviews and, therefore, is subject to fluctuation.
Frost & Sullivan research services are limited publications containing valuable market information provided to a select group of customers in response to orders.
Our customers acknowledge, when ordering, that Frost & Sullivan research services are for their internal use and not for general publication or disclosure to third parties.
No part of this research service may be given, lent, resold or disclosed to non-customers without written permission.
Furthermore, no part may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the permission of the publisher.
For information regarding permission, write to:
Frost & Sullivan
4 Grosvenor Gardens,
London SW1W 0DH
The United Kingdom
© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Disclaimer
249837
The Frost & Sullivan Story
259837
Who is Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.
To join our Growth Partnership, please visit http://www.frost.com.
269837
What Makes Us Unique
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
IndustryCoverage
Global Footprint
Career Best Practices
360 Degree Perspective
Visionary Innovation Partner
279837
TEAM Methodology
Frost & Sullivan’s proprietary TEAM Methodology ensures that clients have a complete 360 Degree
PerspectiveTM from which to drive decision making. Technical, Econometric, Application, and Market
information ensures that clients have a comprehensive view of industries, markets, and technology.
Technical
Real-time intelligence on technology, including emerging technologies, new
R&D breakthroughs, technology forecasting, impact analysis,
groundbreaking research, and licensing opportunities.
Econometric
In-depth qualitative and quantitative research focused on timely and critical
global, regional, and country-specific trends, including the political,
demographic, and socioeconomic landscapes.
Application
Insightful strategies, networking opportunities, and best practices that can be
applied for enhanced market growth; interactions between the client, peers,
and Frost & Sullivan representatives that result in added value and
effectiveness.
Market
Global and regional market analysis, including drivers and restraints, market
trends, regulatory changes, competitive insights, growth forecasts, industry
challenges, strategic recommendations, and end-user perspectives.
289837
Our Global Footprint 40+ OfficesScanning the Globe for Opportunities and Innovation