GHP April 2016

ghp April 2016 | 35 Innovation & Technology Leading investment bank boutique makes HealthTech predictions for 2016 and beyond in Global Investment Review The report from IBIS Capital predicts that healthcare sector spending will accelerate, rising over the next 3 years to $9.6tn. However, despite this, the industry faces enormous structural issues, due to pressures from an increasing global population and life expec- tancy. The report predicts that as demand rises, the pressure to reduce costs and demonstrate value will start to intensify. As such, digital transformation will be crucial – and within the healthcare sector, this ex- pands beyond the health service, and in recent years’ services, now into the information dimension too – helping to dramatically improve diagnosis, wellness and disease prevention. In line with many industries, smartphone penetra- tion and increased access to internet and wireless technologies were found to be creating the greatest growth opportunities within the market. In fact, the report predicts that global healthtech expenditure will grow nearly four times, to $233.3bn by 2020, with the telehealth sector (+48%) expected to show the greatest individual growth rate, followed by mHealth (+36%) and wireless health (+23%). “Smartphones and devices have revolutionised the way we consume, manage and share information – that applies to every industry, and healthcare is no exception,” said Charles McIntyre, CEO, IBIS Capital. “For example, companies have seen downloads of health apps more than double (+197%) in a single 12-month period, as consumers look for new and easier ways to integrate healthcare into their everyday lives. We understand smartphone technology, and now we want everything translated through it – that’s especially true of healthcare advice and information which can often be dense and complex. This is opening up huge opportunities for tech growth and investment within the healthcare space” The report indicates that global markets with the greatest opportunities for growth run parallel with the penetration of smartphone and wireless technologies. As such, emerging markets APAC and LATAM are showing the greatest numbers of users, and so also healthtech growth potential. The report highlights that emerging economies often with weaker health- care infrastructures, rural areas and less doctors per inhabitant, have a greater need for tech innovation and disruption. Furthermore, emerging countries are better prepared to embrace new technology, leapfrog- ging older legacy infrastructure. The use of social media for healthcare research and delivery is emerging as an important trend the report finds, growing 25% since 2012. Largely, groups were found to be using social channels to review healthcare providers, treatments and products (42%) and a quar- ter are accessing health-related videos. The penetra- tion of social media in healthcare was also found to be being used by health professionals themselves, with LinkedIn seeing the greatest share of users (32%), as well as consumer facing sites such as Facebook. Mil- lennials were found to be having the greatest impact on this trend, due to a strong correlation between this generation and the use of technology. With the adoption and implementation of new tech- nologies, the review noted an increasing consumer acceptance to wear health and fitness trackers, with the wearables market predicted to increase 7.7 times to $23bn by 2020. Revenue from global wearable devices will be primarily driven by smart watches with 94m units sold in 2020 followed by transformables. Key reasons for wearables adoption were noted as, to exercise smarter (77%), collect and track medical info (75%) and eat better (67%). With cost savings ever paramount, the continued digitisation of health records is predicted to save the health sector billions, with almost $1.5m potentially saved from duplicate or lost records, $20bn from du- plicate radiology tests and increased efficiencies from consolidated information and accurate transcripts. Finding ways to harness big data and analytics will create big opportunities for better patient care in the future. “Technological disruption within healthcare has advanced significantly over the last 5 years but there is still a long way to go and huge opportunities to be had,” said Charles McIntyre, CEO, IBIS Capital. “Developments in the market in 2015, such as a partnership to print human skin between L’Oreal and Organovo, and a similar research partnership between P&G and Agency for Science, Technology and Re- search, demonstrate the exciting innovation coming out of the industry. As new technologies penetrate the market, such as 3D printers, advanced prosthetics, and increased mobile and internet access, the market opportunities for growth will accelerate.” To see the full report from IBIS Capital, as well as investment reviews from the Gaming and Advertising technology sectors, visit insights-research/ Media and tech investment and advisory firm IBIS Capital in March released its forecast for the biggest trends set to impact the HealthTech industry in 2016 and beyond. With a greater emphasis on digital transformation and spend, HealthTech ac- celeration in emerging markets will present some of the greatest growth opportunities for the coming year.