Market Challenges And Opportunities
Global Convergence in Healthcare Market - Restraints
- High costs associated with advanced healthcare technologies: High costs associated with advanced healthcare technologies are significantly restraining the growth of the global convergence in healthcare market. Cutting-edge technologies in healthcare such as AI, internet-of-things (IoT), robotics, remote patient monitoring, telehealth and virtual care solutions require substantial investments in R&D, infrastructure development, and ongoing operational costs. While the benefits of these new technologies are immense, the initial capital expenditures and maintenance costs pose a massive barrier for widespread adoption, especially in price-sensitive and low-resource settings.
- Lack of digital healthcare infrastructure in developing countries: Lack of digital healthcare infrastructure in developing nations is significantly hampering the growth of the global convergence in healthcare market. Many developing countries still have poor public health systems with limited access to healthcare facilities, medical professionals, and technologies even in urban areas. The rural regions often have almost no access to basic healthcare amenities. This is where the potential of convergence driven healthcare models involving digital technologies could have helped improve the reach, access, quality and affordability of healthcare.
Global Convergence in Healthcare Market- Opportunities
- Emerging markets in Asia Pacific and Latin America: Emerging markets in developing nations present a massive opportunity for convergence in the global healthcare market. These developing economies are experiencing rapid urbanization and wealth accumulation among their populations. As standards of living increase, healthcare demands and expectations rise substantially. People in these nations aspire to access advanced medical technologies, innovative treatments, quality care facilities and integrated healthcare systems on par with developed world standards. This evolution in healthcare needs and purchasing power sets the stage for the globalization of next-generation products, services, and delivery frameworks. Leading multinational corporations have the potential to introduce cutting-edge solutions that address the emerging core requirements of these new consumer segments in an affordable and wide-reaching manner. Areas such as telemedicine, digital health records, medical device miniaturization, affordable diagnostics, preventive care approaches and supply chain optimizations catering to remote populations can achieve significant scale if tailored to local realities.
- Rising healthcare expenditure: The significant factor influencing the growth rate of the global convergence in healthcare market is the growing healthcare expenditure, which helps in improving its infrastructure. For instance, according to the International Health Care System of the U.S., in June 2020, U.S. government organizations aim to improve the healthcare infrastructure by increasing funding, setting legislation, and national strategies, and cofounding and setting basic requirements and regulations for the Medicaid program. Similarly, in November 2022, the Canadian Institute for Health Information reported that the total healthcare expenditure in Canada was US$ 331 billion in 2022, or US$ 8,563 per Canadian, while health expenditure represented 12.2% of Canada's gross domestic product (GDP) in 2022, following a high of 13.8% in 2020.
Global Convergence in Healthcare Market- Drivers
- Aging population and need for improved healthcare access: As the global population continues to age significantly, there will be an ever-growing need for improved healthcare solutions and access. Older individuals tend to need more medical care and assistance to maintain quality of life, thereby putting increased pressure on existing healthcare frameworks. By 2050, the number of people aged 60 years or older is expected to total 2 billion worldwide, up from 1 billion in 2020. Many nations will witness a substantial jump in their percentage of elderly residents, requiring support. This demographic shift creates challenges for social systems and family support networks but also presents opportunities for new innovations. Convergence of technologies promises to help address the demands of an aging population by enhancing access to care, improving health monitoring and management of chronic conditions, thereby assisting with daily living, and reducing costs. Several converging areas such as telehealth, remote patient monitoring, digital therapeutics, and AI-based clinical support tools allow for more care to be safely provided in homes and communities rather than traditional centers. This allows elderly and those with limited mobility to receive quality medical attention, rehabilitation services, medication management, and social connection without the need for as much in-person visits or long-term institutionalization. Data collected from connected devices and systems also enables more proactive and predictive strategies for preventing or delaying the onset of illnesses. Overall, the convergence of technologies has strong potential to make healthcare systems more suitable and sustainable for the realities of widespread demographic aging.
- Increased focus on preventive medicine and consumerism: In addition to adapting for an older population, healthcare models must also become more focused on preventive strategies and empowering individuals as engaged consumers. Rising costs that are associated with treatment of chronic diseases and hospital visits have illuminated the need for interventions earlier in the disease process. However, traditional medical frameworks prioritize sick care over proactive wellness management. The convergence of digital health with fields such as nutrition, fitness, and behavioral science gives way to more personalized, data-driven approaches for influencing lifestyle factors, and avoiding costly complications down the road.
- Increasing product launch: Increasing adoption of inorganic growth strategies such as product launch is expected to drive the market growth over the forecast period. For instance, on August 23, 2023, FUJIFILM Holdings, a medical technology company, launched 1.5 Tesla magnetic resonance imaging (MRI) system, the ECHELON Synergy. The system employs Synergy DLR, Fujifilm’s proprietary Deep Learning Reconstruction (DLR) technology powered by artificial intelligence (AI), to enhance the sharpness of images and acquire scans faster, thereby contributing to higher throughput, image quality, and patient satisfaction.
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