Frost & Sullivan: Healthcare Expenditure in APAC to increase 75% by 2015

Dec. 8, 2011 - PRLog -- Singapore, 8 December 2011 – Countries in Asia Pacific will experience the fastest growth in Healthcare expenditure over the next 10 years with China, India and Vietnam leading the climb.  In 2011, Asia Pacific is estimated to capture 28.5% of the global market but by 2015 it will increase market share to 34.6% of the global market.  New opportunities set a promising healthcare market perspective with a strong potential for further growth.

Frost & Sullivan finds that by 2020, the APAC healthcare market will reach US$2927 billion which represents a 151% increase. The positive healthcare market outlook for APAC is also based on the expansion of middle class and aging populace that changes healthcare services configuration and market strategies.

“The Asia population is expected to grow to 4.5 billion by 2050 which accounts to 60% of the world population.  Currently there are about 4.8 million Asian households with income above US$50,000 p.a. and this is expected to grow by 3% to 5% for Southeast Asia and 5% to 7% for China and India,” observes Reenita Das, Senior Vice President, Asia Pacific & Latin America, Healthcare, Frost & Sullivan.

“Rapid urbanization seen in many Asia countries will create super cities which gather intense concentration of population of high consumption. The incremental demand for health services will impact the volume of routine hospital procedures, such as ambulatory exams, ultrasound, X-ray, among others,” she added.

China remains the largest private healthcare delivery market in the region (excluding Japan) with 300 new public hospitals expected to be built by 2012. Rhenu Bhuller, Vice President, Healthcare, Asia Pacific, Frost & Sullivan said, “Demand of healthcare facilities will be further driven by various government initiatives to increase the health service accessibility.

“Singapore too will see a surge and 80% of secondary and tertiary care will be provided by public hospitals. This translates to an increase of 9,687 beds provided by public hospital and 3,181 more beds by private hospitals,” said Bhuller.

From now to 2015, the market will also be driven by Asian medical tourism which is expected to reach US$4.4 billion by 2012. JCI accredited hospitals in APAC have increased by almost seven folds over the past six years. Together with this, the portability of health insurance further expands the potential for intra-regional medical visits.

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MEDIA CONTACT:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +603 6204 5832
E: djeremiah@frost.com

Jessie Loh
Corporate Communications – Asia Pacific
P: +65 6890 0942
E: jessie.loh@frost.com

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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.