HEALTHCARE IT MARKET IN EMERGING ECONOMIES ( )
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1 HEALTHCARE IT MARKET IN EMERGING ECONOMIES MarketsandMarkets
2 MarketsandMarkets (M&M) is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. M&M covers thirteen industry verticals, including advanced materials, automotive and transportation, banking and financial services, biotechnology, chemicals, consumer goods energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2011 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets 2
3 EXECUTIVE SUMMARY The market research project titled Healthcare Information Technology Market in Emerging Economies is based on primary/secondary research and analyzes market segments such as Hardware, Software and Services. The geographies in focus are Brazil, India, China, Russia, South Korea, and Mexico. MARKET SCENARIO The healthcare IT (HCIT) market in emerging countries is very nascent and untapped. Emerging countries have been very late in the adoption of healthcare IT as compared to their developed counterparts such as the U.S., Europe and Japan. This is due to infrastructural issues, high price of information systems, low awareness levels, and lack of proof on ROI. However, with increasing medical tourism in countries such as Brazil, South Korea, Mexico and India, healthcare providers are keen on adopting strategies that improve clinical workflow, enhance efficiency, save costs, and at the same time enable faster and more accurate healthcare delivery. FIGURE 1 HEALTHCARE IT SPENDING IN EMERGING COUNTRIES Source: Secondary sources, Expert interviews, M&M analysis MarketsandMarkets 3
4 1 MARKET OVERVIEW 1.1 NEED FOR BETTER QUALITY HEALTHCARE DELIVERY Rise in the aging and chronic disease population and medical tourism in emerging countries are boosting the demand for better quality healthcare delivery. This is in turn driving the healthcare IT market as healthcare IT improves clinical workflow and efficiency by reducing errors and facilitating faster/ more accurate healthcare delivery with reduced costs. Healthcare providers are thus shifting to healthcare IT to remain competitive in the industry. This demand for superior quality healthcare delivery is also contributing to newer healthcare delivery models such as home healthcare, and telemedicine, which also boost the healthcare IT market. Such factors indicate that IT enabled healthcare delivery is the future of the healthcare industry. FIGURE 2 HEALTHCARE IT BOOSTED BY NEED FOR BETTER QUALITY HEALTHCARE DELIVERY Rising ageing, chronic disease population and booming medical tourism Need for better quality healthcare delivery Healthcare IT & novel models of healthcare delivery Source: Secondary Research, M&M Analysis MarketsandMarkets 4
5 1.1.1 INCREASE IN PER CAPITA HEALTHCARE EXPENDITURE ( ) There is an increase in the per capita healthcare expenditure in emerging economies, which is boosting the demand for better quality healthcare delivery; this in turn boosts the development of healthcare infrastructure using healthcare IT. TABLE 1 HEALTHCARE EXPENDITURE PER CAPITA ( ) Region CAGR% ( ) Brazil XX XX XX XX XX XX Russia XX XX XX XX XX XX India XX XX XX XX XX XX China XX XX XX XX XX XX Mexico XX XX XX XX XX XX Korea XX XX XX XX XX XX Source: World Bank MarketsandMarkets 5
6 1.2 OPPORTUNITY ANALYSIS Increasing medical tourism is the greatest opportunity for the healthcare IT market as it compels healthcare providers to look for strategies that enhance efficiency and clinical workflow, and ensure faster and better quality healthcare delivery. Governments are also compelled to adopt healthcare IT to boost their healthcare infrastructure, thereby fuelling the medical tourism business. Thus medical tourism is an opportunity that has and is expected to have the maximum impact on healthcare IT adoption in emerging countries. Increasing government initiatives and incentives in emerging markets is another significant factor expected to boost the market in the near future. Rising healthcare expenditure and the untapped potential of developing countries, where XX% of the hospitals are not equipped with healthcare IT, should be major attractions for investors. FIGURE 3 HEALTHCARE IT OPPORTUNITY ANALYSIS Opportunity Analysis High Level of persistence Low Market attractiveness High Low Increasing medical tourism Nascent market - Untapped potential Government initiatives Increasing healthcare expenditure Source: Secondary Research, M&M Analysis MarketsandMarkets 6
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