Asia, which harbors 60 percent of the world’s population, currently accounts for just 22 percent of global healthcare expenditure. This disparity presents a significant opportunity for innovative solutions and technology to address this gap, as highlighted in a recent report by the Boston Consulting Group (BCG).
Priyanka Aggarwal, Managing Director and Senior Partner at BCG, emphasized that there is a necessity for new healthcare infrastructure that does not replicate existing “legacy” systems. Such infrastructure must be aligned with evolving demographics, including an ageing population, and reflect modern healthcare consumption patterns. Furthermore, it should be developed at a cost structure that differs vastly from the approaches taken by developed nations, as she noted in her commentary on the report titled “The Unmissable Asia Healthcare Opportunity” to businessline.
Aggarwal suggested that innovations could encompass decentralized and distributed care models, specialized treatment options, value-based healthcare, and adaptable insurance products. For instance, the establishment of “remote ICUs” and empowering nurses through technology represent promising avenues for future development.
Smruthi Suryaprakash, Partner at BCG, added that a similar tech-forward methodology could enable the region to make significant advancements in drug discovery. She noted that Contract Development and Manufacturing Organizations (CDMOs) in the area could grow on a global scale and handle increasingly complex products effectively.
The report also stressed the diverse healthcare expenditures across Asian countries. For instance, Indonesia allocates only 3.7 percent of its GDP to healthcare, whereas more developed nations like Singapore spend 5.5 percent. The spending per capita further illustrates this inequality, with India investing just $74 per capita, compared to Thailand and Malaysia, which spend $364 and $487 per capita, respectively.
Despite the current geopolitical uncertainties, the report predicts that Asia is on track to reach a healthcare expenditure of $5 trillion by 2030, accounting for 40 percent of global sector growth. This growth will be driven by rapid demographic changes, increased investment, and groundbreaking technological advancements. The report also anticipates that healthcare services will grow from their current valuation of $1.0-1.5 trillion to between $2.0-2.5 trillion by 2028, with the pharmaceutical and medtech sectors expected to grow by 9 percent and 8 percent, respectively, over the next five years.
