Healthcare expense control is a hotly debated topic in the American news. One sixth of the US economy, approximately $2.7 trillion, is spent on healthcare.
Healthcare expense control is a hotly debated topic in the American news. One sixth of the US economy, approximately $2.7 trillion, is spent on healthcare. An aging population and unhealthy lifestyles are two significant drivers of cost. According to demographic studies, individuals aged 65 or older will comprise nearly one-fifth of the population by 2050. Older individuals typically need more health care than younger people. Yet, due to unhealthy lifestyles, the Milken Institute projects a 42 percent increase in chronic disease cases by 2023, adding $4.2 trillion in treatment costs and lost economic output.
Costs continue to rise for individuals, young and old, as well as corporations and small businesses. As companies try to contain overhead costs and preserve margins, the consumer and employees suffer the consequences. The healthcare situation yields high dissatisfaction among all its participants making the system a target for radical change.
One hope for change is medical technology and digital health. High costs create incentives for innovation through high ROIs for those who are able to solve core problems in the health care industry. Mobile technology and applications are now being combined with personal sensor devices that are wearable (even ingestible) that are always connected. Providers have more information to better serve seniors, babies, chronically ill, disabled and at risk individuals.
Relevant Market Forecasts
Consumer Electronics Association: 70 million personal health and wellness products by 2018, at a value of $8 Billion.
Markets and Markets: estimated the global mobile healthcare market will reach $20.7 billion by 2018, a compounded annual growth rate of more than 27 percent.
Aon Hewitt: By 2018, 9 out of 10 employers will use mobile technology to engage wellness-program participants in healthy behavior.
Juniper Research: by 2018, there will be 96 million users of app-enabled mHealth and mobile-fitness hardware devices.
Better health will not only make individuals better off, the economic value produced will help everyone. The health care market issues are diverse, yet the opportunities are enormous. The size of the opportunity is so compelling that in 2013 investors put more than $1.9 billion into early stage funding.
Markets are continuously changing. Consumer expectations adjust to new products and more choices. Innovation is necessary. N³ Innovation can help you evaluate market trends and stay relevant to future customers. Contact us today!