In a recent report, Frost & Sullivan, a globally recognized consulting firm, highlighted that the global healthcare industry is expected to experience steady growth in 2018, with the revenue from medical products surpassing $1.85 trillion. This projection reflects the ongoing transformation and increasing investment in digital health solutions.
In 2017, digital medical investments exceeded $6.5 billion, marking a year-on-year increase of 109%. The report suggests that this upward trend will continue in 2018, driven by the emergence of innovative technologies and platform solutions that enhance the quality of care, treatment outcomes, and chronic disease management. Additionally, the rapid growth in emerging markets is reshaping the traditional paradigms of medical product development and geographic expansion.
The report outlines the top 10 innovation trends in the global healthcare industry for 2018:
**Trend 1: "Service as a Product" – A Competitive Edge**
The "Service as a Product" model is becoming a key strategy for gaining a competitive advantage in the healthcare sector. This approach, often referred to as "Service+", is expected to become a significant source of revenue for the sustainable development of the medical industry. Major pharmaceutical companies and healthcare providers are projected to generate 2% to 3% of their total revenue from this model within the next two to three years.
As the industry shifts toward "platform as a service" and "data as a service," information technology plays a crucial role in aligning business expectations. This transition leads to changes in capital expenditure, moving toward operating costs. "Letting data speak" is emerging as a new driver of innovation. For instance, medical insurance models that pay based on treatment outcomes are being enhanced through smart solutions and services, enabling differentiated care and helping end users better understand the value of medical services.
**Trend 2: Cloud as the Core Platform for Collaboration**
The cloud is becoming the central platform for cross-industry collaboration in healthcare, offering cost reduction and efficiency improvements. As medical data becomes more complex, the cloud allows flexible access to all stakeholders. The global medical cloud computing market is expected to exceed $5 billion in 2018, growing at an approximate rate of 24% between 2017 and 2022.
With the rise of value-based care and precision medicine, deploying scalable cloud platforms is essential. These platforms enable the integration of various data sets, allowing healthcare organizations to collaborate on new care models like telemedicine and home care, while developing practical analytical solutions.
**Trend 3: Technology Giants Reap High Returns**
In 2018, the FDA's program for fast-tracking digital therapeutics and health applications will open new opportunities for non-traditional players such as Apple, Verily (Google’s life sciences division), Samsung, and Fitbit. This shift encourages greater competition and innovation in the medical market.
To truly implement a "patient-first" and "brave innovation" approach, the medical industry must align with the IT and retail sectors, leveraging technology and effective business models to win consumer trust and loyalty.
**Trend 4: Mobile Healthcare Drives Efficiency and Patient-Centric Care**
Virtual testing and remote clinical trials are gaining momentum, with mobile healthcare playing a pivotal role in improving efficiency and focusing on patient needs. Wearable devices and smartphone apps have shown significant potential in reducing testing costs, streamlining procedures, and demonstrating real-world performance.
Approximately 20% of clinical trials worldwide are expected to be conducted virtually, with mobile healthcare solutions growing rapidly over the next 18 months. The adoption of the "Bring Your Own Device" model is also making mobile and wearable technologies standard in clinical research.
**Trend 5: In-Hospital Robotics Gains Momentum**
Robotic surgery and care are becoming increasingly popular, especially as the demand for elderly care rises due to nursing staff shortages. The medical automation and robotics market is projected to exceed $1.6 billion by 2018. As competition intensifies, the right robotic technologies and strategic partnerships will be key to success in the medical market.
It is estimated that by 2025, 80% of surgeries will be performed by robots, signaling a major shift in surgical practices.
**Trend 6: Asia Pacific Leads Smart Hospital Initiatives**
Smart hospital projects are gaining traction in the Asia Pacific region, driven by digital advancements and the concept of smart cities. Countries like South Korea, Australia, Singapore, and Malaysia are expected to have around 3,200 smart beds in 2018. However, interoperability and cybersecurity remain critical challenges in implementing these solutions effectively.
**Trend 7: Cybersecurity Threats Rise in the Healthcare Sector**
Despite increased investment, the number of cyberattacks in the healthcare industry is expected to double in 2018. As medical information becomes more digitized, the sector is becoming a prime target for cybercrime. Companies operating medical technology or consumer devices could face significant financial losses in the event of a breach.
To address this, governments, health departments, and medical device manufacturers must strengthen collaboration, establish long-term guidelines, improve risk awareness, and develop robust risk management strategies.
**Trend 8: Incentive-Based Health Insurance Plans Gain Popularity**
In 2018, incentive-based health insurance plans featuring "seeing data and paying insurance" will become a standard model. With 52% of the global workforce overweight and 76% facing health issues, only 9% are participating in employer-provided health plans. This gap highlights the need for forward-thinking mechanisms that encourage healthier lifestyles.
Companies like Vitality, Discovery, UnitedHealth Group, and Oscar are leading the way in promoting these innovative health insurance models worldwide.
**Trend 9: AI Becomes Central to Medical Imaging**
Artificial intelligence is set to revolutionize medical imaging by automating processes, improving efficiency, and enhancing diagnostic accuracy. AI platforms have strong learning capabilities, which can boost radiologists’ productivity by 10% to 15% across various imaging tasks. Over the next few years, AI is expected to significantly improve the accuracy of screening results.
**Trend 10: Blockchain Moves Beyond Experimentation**
Although still in its early stages, blockchain technology is beginning to show promise in the healthcare sector. Early B2B network implementations demonstrate its potential. In 2018, the first blockchain solutions are expected to provide early insights into areas like insurance claims management, clearing houses, and revenue cycle outsourcing.
Additionally, the medical industry may see a breakthrough in 2018 with ICOs and token trading activities, empowering consumers and reshaping traditional medical practices.
Cixi Xinke Electronic Technology Co., Ltd. , https://www.cxxinke.com