Rise of Global Healthcare

Market Overview:

The Global Healthcare Market size was valued at USD 10.30 Trillion in 2021 and is projected to reach USD 21.06 Trillion by 2030, growing at a CAGR of 8.27% from 2023 to 20301 (Figure 1). This growth is fueled by an aging population, increasing chronic diseases, and expanding patient access to medical technology in developing nations.

GLOBAL HEALTHCARE MARKET SIZE, 2021-2030
CAGR
8.27%

Figure 1: Global Healthcare Market Size, 2021-2030.

Source: Verified Market Research Group, 2023

The Big Changes:
The global healthcare services landscape is undergoing a significant hystoric transformation driven by five key trends (Figure 2):
  • 1 Increased M&A transactions among global healthcare services companies
  • 2 The increased role for management discipline across U.S. healthcare
  • 3The growing influence of private equity investment capital
  • 4The growing prominence of virtual care
  • 5The ability for data management systems to support complex delivery platforms.
Figure 2: 5 Trends shaping the global healthcare services market.

Together, these trends are shaping a dynamic healthcare ecosystem, driving innovation and optimizing patient experiences on a global scale. Each trend is in fact fueling the other, the combination of ever larger healthcare delivery platforms with access to almost limitless capital, that are now capable of engaging in large global initiatives combined with today’s data driven management sciences, and as was the case with retail, the re-imagining of healthcare delivery in a virtual framework is creating new limitless possibilities for access and scalability. It is not a surprise that Amazon, Walgreens, CVS, Walmart, and other large global retail corporations have all invested and continue to invest many billions of dollars to be part of this latest digital revolution.

We have seen a similar sudden emergence of “global leaders” in past industries, from retail (Wal-Mart, and Amazon), to automotive (Ford & General Motors), to banking (Goldman Sachs, Bank of America, and JP Morgan). In past examples it has been U.S. market leaders who have ultimately acted as the pioneers in building global presence across Europe, Latin America, and the Far East. We believe a similar phenomenon is now starting in U.S. Healthcare, such that in the next few years, the very term “U.S. healthcare” will lose its long-standing prominence in both commerce and society, to be replaced with Global Healthcare, the same way that U.S. Pharma is not really the primary term when discussing the Pharma industry, but instead “Global Pharma”.

In our opinion, we are in the ninth inning of “U.S. Healthcare Services” and entering the first inning of “Global Healthcare Services”

Global M&A Activity
The global healthcare services sector is increasingly a target for global private equity (PE) firms seeking post-pandemic growth, with robust activity in 2022 totaling 914 deals valued at US$128.4 billion (Figure 4).
Significant Global Healthcare Services Deals In Recent Years:
The Traditional Global Pharma, Medical, and Biotech investments continue - Recent deals included:
Beyond Acquisitions: Building Partnerships and Collaborations

It’s not all about acquisitions. International platforms are also forging strategic partnerships and collaborations with US providers. For instance:

These partnerships highlight the growing recognition of the power of international collaboration in driving healthcare innovation and improving patient lives.

The Increasing Activity in Global Virtual Care:

Market Overview:

Global Virtual Health Service Market

Size, by Consultation Mode, 2022-2032 (USD Billion)

Note: Malaysia and Philippines were not included in 2019 survey
Source: Bain Front Line of Healthcare Asia-Pacific Survey, 2021 (n=1,750), 2019 (n=1,521)

International M&A Activity Fueling Virtual Care Expansion:

The future of virtual care is not just about international companies acquiring platforms; it’s about collaboration and knowledge sharing. We’re seeing:

The internationalization of virtual care is transformative. By breaking down geographical barriers and leveraging global expertise, it has the potential to democratize access to quality healthcare, reduce costs, and improve patient outcomes around the world. It’s an exciting time to be a part of this evolving landscape, and one can’t wait to see how this virtual revolution continues to reshape the future of healthcare.

Sources:

Join SCALE Community

We are excited for you to share in the benefits of SCALE community’s healthcare focus materials. If you are not currently a member sign up now to get unlimited access to all our materials.