About ADDvise Group
ADDvise offers products and services to healthcare and research facilities around the world. The global market for medical technology is growing and is expected to continue to grow. ADDvise operates in a non-cyclical market, which is driven by structural trends. A number of structural trends are set to drive long-term growth in the addressable markets.
Global population is expected to increase by 2 billion people over the next 30 years. About 83 million people are expected to be added to the world’s population each year until 2050. Growth is driven largely by an increasing number of people surviving to reproductive age. Major changes in fertility rates, increasing urbanisation and accelerating migration will further underpin growth.
Rising prevalence of chronic diseases
Ageing populations and changes in societal behaviour are contributing to a steady increase in chronic diseases. A growing middle class, coupled with urbanisation, points toward a more sedentary lifestyle which contributes to increasing obesity and diabetes rates. Emerging markets are set to be hit the hardest owing to their disproportionate population growth and share of global middle-class expansion.
Virtually every country in the world is experiencing growth within their elderly population. Population ageing is set to be one of the most crucial social shifts of the twenty-first century, and countries are likely to face fiscal and political pressure in relation to public systems of healthcare and social security for the elderly. By 2050, one in six people in the world will be over the age of 65, up from one in eleven in 2019.
Rising cost of providing care
The healthcare sector continues to expand faster than the overall economy. Between 2000 and 2017, global health spending in real terms grew by 3.7% a year whilst the economy grew by 3.0% a year. Public spending represents about 60% of global spending on health which grew at 4.3% p.a. during ‘00-’17. Global MedTech spending is projected to reach USD 522bn by 2022; a CAGR of 5.2% since 2018.
Technological advances and growing investments in research
Global R&D spending reached a record high of almost USD 1.7 trillion in 2019. Many countries stimulate investment in both the private and public sectors by setting national R&D targets. Swedish R&D spending reached its highest level in a decade in 2019, with total spend of SEK 171bn. Sweden targets R&D investment to amount to 4% of GDP.