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Global Healthcare Industry Overview

  

Global healthcare expenditure was $7.6 trillion in 2013, rising at a 4% compound annual growth rate (CAGR) from $6.2 trillion in 2009, according to estimates based on World Health Organization (WHO) data.

Global Healthcare Expenditures from 2009 to 2013

Globally, government spending contributed 55% of total healthcare expenditure in 2013, while private spending, largely funded through insurance, accounted for the remaining 45%. However, the range is wide: in Europe government spending accounted for 74% of total expenditure in 2013, whereas in South East Asia for only 38%, according to WHO.

Healthcare industry growth was driven by increased spending in both general and specialty medicine to treat chronic diseases, including cancer, diabetes and hypertension. These now account for 75% of illness across the world. 

Healthcare includes all the services, products, equipment and facilities involved in the prevention, treatment and management of illness and the preservation of mental and physical well-being. The whole industry cover varied sectors such as the business of alternative medecine, the organization of medical facilitiesorgan supplies and, more indirectly veterinarian services.   

Healthcare Key Markets

The U.S. had by far the highest healthcare expenditure, at $2.9 trillion in 2013, according to estimates based on WHO data. This was distantly followed by Japan and China with expenditures of $670 billion and $484 billion respectively. Europe, too, is a major market, with the five largest countries, Germany, France, the U.K., Spain and Italy making up more than $1 trillion in spending between them. 

Top Countries with highest healthcare expenditures in 2013

Healthcare Key Players

The key non-government players in the healthcare sector are the insurance companies.  Healthcare providers such as hospitals, acute care centers and primary care centers are mainly small scale, though some chains are growing. The largest health insurers in the world are in the U.S.: UnitedHealth Group Inc. and Anthem Inc. (former WellPoint). were the two largest insurance providers in 2013, with revenues of $122 billion and $70 billion respectively.

UnitedHealth Group provides insurance and managed care services. It offers its members access to healthcare services through a network of doctors, hospitals, clinics and medical equipment vendors. It splits its services between corporate and personal schemes, Medicare and Medicaid (state provided health programs), and military and veteran schemes. It has more than 85 million customers across the U.S. and 125 other countries, including nearly 5 million in Brazil.

Anthem (previously WellPoint) is a provider of insurance and managed care. It offers its services to national and local companies, private individuals, as part of government sponsored Medicare and Medicaid programs, and federal employees. It had 35.7 million members enrolled in its programs in 2013 and more than 35,000 employees.

Healthcare Expenditure Forecast

Global expenditure on healthcare is expected to grow to $9.5 trillion in 2018 from $7.6 trillion in 2013 (at a CAGR of 4%), according to forecasts based on WHO data.

Global Healthcare Expenditure Forecast for 2018

The healthcare industry will be driven by increases in the elderly population.

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Global Healthcare Demand Analysis

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