Global healthcare expenditure is set to grow from just over $7.2 trillion in 2015 to around $9.17 trillion by 2020, registering a compound annual growth rate (CAGR) of 5%, according to research firm MarketLine.
The company’s report states that growth will primarily be driven by the US, which dominates the global market and accounts for nearly 50% of total expenditure. The country also has a good forecast CAGR of 4.6%, exceeding that of Europe and Asia-Pacific, indicating that its share of the healthcare market will rise by 2020.
Kate Moody, Analyst for MarketLine, explains: “Strong, stable growth has been felt in the US, and is predicted to continue throughout the forecast period, buoying the global market and offsetting slower growth in Europe and Asia-Pacific (APAC).
“The jump in growth since 2014 is primarily explained by the fact that millions of Americans have gained health insurance through the 2010 Affordable Care Act, state Medicaid programs have been expanded, and the jobs market has been fairly strong recently, which means a higher number of people have health insurance.
“In Europe, the industry’s second largest market, growth will primarily be driven by France, Germany and the UK, which together account for over 50% of European healthcare expenditure.”
MarketLine’s report also states that segment growth differences have been pronounced. Globally, outpatient care is the largest segment, accounting for around 40% of total spending. This is skewed by the large US market, where over half of expenditure goes towards outpatient care. By comparison, the European outpatient segment is much smaller (26.5%), while inpatient care accounts for the bulk of healthcare expenditure in the region.
Moody continues: “Comparing spending breakdowns between countries and regions offers some distinct differences and priorities. For example, APAC has a large medical goods segment, while this segment in Europe, and the US in particular, is noticeably smaller."
* * *
Editor’s notes
- Comments provided by Kate Moody, Analyst for MarketLine.
- Information based on MarketLine’s report: Healthcare Providers Global Industry Guide_2016.
- All information correct at time of publication and prepared under MarketLine’s established methodology.
About MarketLine
Profiling all major companies, industries and geographies, MarketLine is one of the most prolific publishers of business information today. Advantage, our interactive subscribers-only platform, provides anytime access to a unique and exclusive access to a mix of company, industry, country, city and financial data for every major industry and marketplace in the world.
MarketLine content is produced by an internal team of analysts, drawing on primary and secondary research and prepared under an established methodology that has been tried and tested over 10 years. With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in MarketLine to deliver quality data in an instant.
For further information on MarketLine Advantage please visit http://marketline.com/overview/advantage/
For updates, connect with us on Twitter or visit http://marketline.com/.
MarketLine is a trading name of GlobalData plc.
For more information
Please get in contact if you have any questions regarding this or other MarketLine reports. Analysts are available to comment. Contact the MarketLine press office on +44 (0) 161 359 5822 or email [email protected].
