Healthcare industry is a broad term that encompasses various industries including pharmaceuticals, medical devices, biotechnology, and Healthcare IT. The pharmaceutical industry deals with the discovery, development, production, and marketing of drugs that are used to cure patients. On the other hand, the medical device industry deals with devices, software, materials or apparatus used for the diagnosis and/or treatment of diseases or injuries.
The biotechnology sector is a vital sector that is fostering the growth of the overall healthcare industry. This sector has witnessed some of the highly disruptive innovations, such as genomics, immunotherapy, monoclonal antibodies, and antibody-drug conjugates. Increasing demand for improved and affordable healthcare has led to the amalgamation of healthcare and information technology. This has led to the development of Healthcare IT.
Patients, Providers, Payers, and Pharma & Medical device companies are the key stakeholders in the healthcare ecosystem. The Global Healthcare spending is expected to grow at around 4% annually between 2017 and 2021. Reducing healthcare costs is a constant endeavor for all the stakeholders in the healthcare industry.
The pharmaceutical industry is going through a consolidation phase in order to overcome patent cliffs, pricing pressure, and competition. The uncertainty of R&D and clinical trial outcomes and the unfavorable regulatory scenario have compelled companies to find different avenues for growth. Companies have started using AI in the drug discovery process to make it more effective. One of the most important trends in the pharmaceutical industry is the development of precision medicine. The development of novel products, such as cell therapy and gene therapy, is also expected to be a major trend to impact the market.
The medical devices sector is also witnessing rapid change owing to the integration of advanced technologies such as Artificial Intelligence, IoT, and 3D printing, among others. One of the major challenges faced by medical device manufacturers is the integration of these advanced technologies with the existing products. Regulatory bodies also play a very important role in the healthcare market. Changes are required in the regulatory guidelines to accommodate the AI and IoT integrated advanced products.
Although North America is currently dominating the global healthcare market, the Asia-Pacific region is expected to grow at a significant rate during the forecast period. A rapidly expanding patient pool, growing health awareness, and increasing dependence on China and India for API supply are expected to boost the healthcare market in the Asia-Pacific region. Developed markets such as North America and Europe are expected to be the early adopters of technologies such as AI, IoT, AR-VR, and 3D printing, among others.
Patients are at the heart of the healthcare ecosystem and so, companies that follow a patient-centric approach will succeed in the future. The key players in this market include Pfizer Inc., Merck & Co., Inc., Bayer AG, GlaxoSmithKline plc., Sanofi, F. Hoffmann-La Roche AG, Eli Lilly, Bristol-Myers Squibb, Novo Nordisk, Novartis AG., Johnson & Johnson, Danaher Corporation, Medtronic Inc., Siemens AG, Baxter International Inc., St. Jude Medical Inc., and Becton, Dickinson and Co., and Stryker Inc., among others.