Total health care expenditures around the world are difficult to determine, but $6.15 trillion would be a fair estimate for 2013. That would place health care at about 8.2% of global GDP, with expenditures per capita about $866. This $6.15 trillion breaks down to approximately $2.9 trillion in the U.S., $2.6 trillion in non-U.S. OECD nations and $0.65 trillion elsewhere around the world. Outside the U.S. and the rest of the OECD, that would allow roughly $90 per capita per year. Clearly, there is vast disparity in the availability and cost of care among nations, as there is with personal income and GDP. Health care spending per capita in the U.S. was equal to about $9,216 in 2013, while spending in the world’s remotest villages was next to nothing. The trend over the near future is for the modest amount now spent on health care in emerging nations to rise dramatically, while OECD nations like America struggle to contain their own mountainous costs. Globally, the total prescription drug market was over $1 trillion in 2013.
A comprehensive study published by the OECD (Organization for Economic Cooperation & Development) covering more than 30 nations including the majority of the world’s most developed economies (excluding Brazil, Russia, India or China), found stark contrasts between health costs in the United States and those of other nations. In 2011 (the latest complete data available), the average of a list that includes, for example, the UK, France, Germany, Mexico, Canada, South Korea, Japan, Australia and the U.S., spent 9.3% of GDP on health care. The highest figures were in America at 17.7% of GDP, The Netherlands at 11.9%, France at 11.6%, Germany at 11.3%, Denmark at 10.9% Canada at 11.2% and Switzerland at 11.0%.
The Indian healthcare industry, which comprises hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment, is expected to reach US$ 160 billion by 2017, as per Frost & Sullivan.
The Indian medical device and equipment market is expected to grow to around US$ 5.8 billion by 2014 and US$ 7.8 billion by 2016, growing at a CAGR of 15.5 per cent, according to a report by Grant Thornton India. India’s medical device market is currently the fourth largest in Asia with 700 medical device makers, and ranks among the top 20 in the world, as per the data from India Semiconductor Association.
On the back of continuously rising demand, the hospital services industry is expected to be worth US$ 81.2 billion by 2015. In addition, the Indian hospital services sector revenue is expected to increase at a CAGR of 20 per cent during the period 2012–17, generating immense possibilities for players in the market, according to a RNCOS report titled, ‘Indian Medical Device Market Outlook to 2017’.
The Indian healthcare providers plan to spend Rs 5,700 crore (US$ 916.40 million) on IT products and services in 2013, a 7 per cent rise over 2012 revenues worth Rs 5,300 crore (US$ 852.09 million), as per a report by Gartner.