Asia’s healthcare market is expected to reach $5 trillion by 2030, contributing 40 per cent of global sector growth, according to Boston Consulting Group’s (BCG) latest report, “The Unmissable Asia Healthcare Opportunity.” This growth is driven by demographic shifts, increased investment, and innovative technology applications.
The report highlights that Asia accounts for just 22 per cent of global healthcare spending, despite being home to 60 per cent of the world’s population. Chronic conditions, such as diabetes and cancer, are more prevalent in the region, which will require the development of unique healthcare models to manage the disease burden. The report identifies liver and stomach cancer, which are prevalent in Asia but less common in the West, as examples where local solutions will be necessary.
Rapid population ageing and gaps in healthcare infrastructure signal a market ripe for disruption. Significant opportunities are identified across sub-sectors including innovative hospital and specialty care, contract manufacturing, research, biotech, and digital health models that integrate omni-channel patient journeys.
Priyanka Aggarwal, Managing Director and Senior Partner & India and South East Asia Leader, Healthcare Practice, BCG, commented, “We are at a unique point in time where Asian healthcare is at the confluence of many tailwinds – rapidly shifting demographics, trade-flows and FDIs favouring Asia as a destination, and demand factors like growing chronic disease burden and a new more active and demanding patient – that creates opportunities to re-imagine how healthcare will be delivered in Asia. Given the heterogeneity of countries in the region, each country will create its own innovation service models to serve this demand.”
The report also highlights the emerging “Patient 2.0” profile. These active consumers are involved in decisions about their healthcare, such as choosing medical institutions, doctors, and adhering to treatment plans.
Key findings include the opportunity for impact capital to penetrate Asia’s diverse healthcare markets, with unique service models emerging in each country. Healthcare services, currently valued at $1.0–1.5 trillion, are expected to grow to $2.0–2.5 trillion by 2028, while pharmaceuticals and MedTech are projected to grow by 9 per cent and 8 per cent, respectively, over the next five years.
BCG’s Smruthi Suryaprakash, Partner at BCG, added, “Innovation is emerging as a key driver of growth in Asia’s healthcare landscape. Indian CDMOs are scaling globally, leveraging their cost efficiencies but also starting to make early strides into complex and cutting-edge modalities such as ADCs and oligonucleotides, enhancing their global competitiveness. At the same time, decades of investment in biotech across the region are starting to pay off, with advancements in India and Singapore driving localised breakthroughs in new therapies and modalities.”
The report serves as a guide for investors and healthcare companies to address key priorities and challenges in the sector while exploring opportunities for innovation. The future of healthcare in Asia presents an exciting opportunity for growth and transformation across the region.