The global healthcare industry has seen strong and consistent growth over the recent decades. Spending in the healthcare industry around the world has also been soaring, mainly driven by the world population increasing at a rapid pace and a growing number of the aging population, rapid urbanization, and the increasing demand of treatment for chronic diseases and comorbidities.
Meanwhile, factors such as the development of clinical innovations, government support, and better access to medical treatment around the world are also fueling growth for the global healthcare industry.
Here are 10 essential facts about global healthcare industry obtained by BizVibe:
1.According to the statistics from Ibid and WHO, the global healthcare spending as a percentage of gross domestic product (GDP) is expected to increase from 10.4 % in 2015 to 10.5 % in 2020. Government healthcare expenditures as a percentage of GDP are projected to rise faster in low-income countries than other income groups.
2. Global healthcare expenditures are projected to reach a total $8.7 trillion by 2020, increased from $7 trillion in 2015, representing a CAGR of 4.3% during the five-year period. The growth of global healthcare expenditures is believed to be mainly driven by improving treatments in therapeutic areas (TA) coupled with rising labor costs and increased life expectancy.
3. North America is currently the world’s largest healthcare spending region, the total healthcare spending in the region is expected to increase from US$3.3 trillion in 2015 to US$4.1trillion in 2020, registering a CAGR of 4.3% during the five-year period.
4. Europe is the world’s second largest healthcare spending region with total spending of US$1.6 trillion in 2015, while is figure is projected to reach US$2 trillion by 2020, poising a CAGR of 4% from 2015 to 2020.
5. Asia Pacific, mainly led by China, India, and Japan etc., is estimated to have the biggest annual growth rate of over 5% from 2015 to 2020 when it comes to healthcare spending. The total healthcare spending in the region is likely to jump from US$1.5 trillion in 2015 to nearly US$2 trillion in 2020.
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6. Average life expectancy around the world is projected to increase by one year by 2020, which will increase the aging population by 8%, meaning that the number of world’s population of over 65 years old will increase from 559 million in 2015 to 604 million in 2020, reported by National Institute of Aging.
7. Chronic diseases are on the rise across the globe, mainly driven by the rapid urbanization, sedentary lifestyles, changing diets, and rising obesity levels, reported by the Economic Intelligence Unit. While WHO reported that, by 2020, almost half of the global healthcare expenditures—about $4 trillion—will be spent on three leading causes of death: cardiovascular diseases, cancer and respiratory diseases.
8. China and India have the largest number of diabetes sufferers in the world, at around 110 million and 69 million, respectively. Globally, the number is expected to rise from the current 415 million to 642 million by 2040.
9. The prevalence of dementia is forecast to increase across the global from 2015 to 2050. In 2015, 46.8 million people worldwide were estimated to be living with dementia. This number is expected to reach 74.7 million in 2030 and 131.5 million in 2050, according to the report from Deloitte Centre for Health Solutions.
10. Communicable diseases remain as one of the biggest threats in the global healthcare industry. HIV-AIDS continues to affect over 36.9 million people around the world, with around 70% of them living in Sub-Sahara Africa. While the Zika virus and associated upsurge are now still the major threats in Latin America.