Strategy and study: Digitization puts global health spending at $ 4.4 billion by 2030

  • Pharmaceutical Directors Expect Growth in Prevention, Diagnostics and Digital Health
  • 27.5% less spending per patient requires efficiencies and new business models for pharmaceutical companies
  • Increasing competition from technology companies leads to changes in the health sector

(Zurich) (PPS) The advent of digital technologies in the healthcare sector holds enormous financial potential, but also poses major challenges for the pharmaceutical industry: a recent survey of 120 leaders of the world's largest pharmaceutical companies predicts an increase in the global health market volume of 10%, from $ 10.6 billion in 2018 to $ 11.6 billion in 2030. However, with the rapid growth in the proportion of people with access to care of health, a reduction of 27.5% of expenditure per patient planned. On this basis, the net operating margins of the pharmaceutical industry could fall sharply from the current 25% over the next decade. This shows that "The future of health"Study by Strategy &, PwC Strategy Consulting. In terms of growth in the healthcare market, pharmaceutical executives surveyed expect a radical change in spending by 2030 compared to 2018, particularly in the areas of diagnosis (+ 524%), prevention (+ 244%) and digital health (+ 205%). In contrast, the share of health care in total spending in the health care sector will decrease by almost 16%. This represents a decrease of approximately $ 1.2 billion globally by 2030.

"In our survey, health officials are waiting at uncertain times for their current business model, and traditional pharmaceutical companies must either be more efficient at conserving margins or investing in growth areas such as diagnostics. , prevention and digital health solutions – this requires quick strategic decisions after technology companies have become heavily involved in the market and have been working on digital offerings for many years The number of partnerships, acquisitions and projects Major players such as Amazon, Alphabet, Apple, Alibaba and Tencent alone have doubled in the healthcare sector between 2014 and today, and these companies now hold more than 6,000 patents related to health " said Dr. Thomas Solbach, partner at Strategy & Germany and senior author of the study.

Among the pharmaceutical managers interviewed, the vast majority are convinced that change is imminent for their own sector. 96% agree that health care will focus in the future on informed and self-determined people, as well as preventive, personalized and integrated digital services. Diseases are treated only partially because they do not manifest themselves at all or only much later because of the priority given to preventive measures. According to officials, this new ecosystem will develop based on innovative business and organizational models and new regulatory requirements. 68% of respondents expect this vision of the future to become the new standard by 2030 at the latest. 75% see it as an opportunity for their companies, as long as the pharmaceutical industry is ready to make change active and complete. So far, however, only 25% have taken a comprehensive strategic approach to addressing these challenges.

"For Swiss pharmaceutical companies, these challenges are also an opportunity, but only those who act early enough will benefit from the change." Technology companies entering the healthcare market have many initial advantages given the new areas of growth. With its dedicated customer focus, data access and processing, and agile innovation, its business models are in many ways similar to rapidly evolving digital medicine as a pharmaceutical company. medical expertise and the commercialization of medical devices, must find completely new ways to move away from decades of development and urgently acquire new digital skills to secure their market share, "says Dominik Hotz, head of health at PwC Swiss ,

The pharmaceutical executives interviewed see technology companies as drivers of change, while regulators are clearly seen as a brake. Interviewees in their own organization have a mixed picture: they consider above all that the creation of a digital reputation and a corporate culture is the main internal challenge (70%), followed by the development of skills currently lacking ( 47%) and the resolution of structural problems. Obstacles (35%). On the outside, the main barriers to regulation and laws are the main concerns (71%), as well as the availability and access rights to the necessary data sets (37%) and the concerns. ethical (22%).

The full results of the study on the future of health are available at



The study interviewed 120 managers of major global pharmaceutical companies belonging to all major organizational and therapeutic areas. Two-thirds of participants came from organizations with revenues exceeding $ 10 billion. The results of the study were supplemented by selective interviews with world-renowned physicians and scientists.