Strategy and Study: Digitalization Moves Global Health Consumption Up to 4.4 to 2030 ... 2

Strategy and Study: Digitalization Moves Global Health Consumption Up to 4.4 to 2030 …

  • Pharmaceutical company managers expect growth in areas of prevention, diagnosis and digital health
  • 27.5% lower per patient consumption requires increased efficiency and new business models for pharmaceutical companies
  • The rapidly growing competition of technology companies causes changes in the health sector

(PPS) The emergence of digital technologies in the health sector has enormous financial potential, but also poses major challenges for the pharmaceutical industry, and currently researching 120 managers of the world's largest pharmaceutical companies predicts an increase in the global healthcare market of 10 percent. %, from $ 10.6 billion in 2018 to $ 11.6 billion by 2030. However, with a rapid rise in the share of people having access to health care, a 27.5% reduction in patient spending is expected. Based on this, net operating margins in the pharmaceutical industry can fall significantly from the current 25% in the next decade. That shows that "The Future of Health"Study on Strategy & Strategic Counseling of PwC. In terms of healthcare growth, surveyed pharmaceutical executives expect large changes in consumption by 2030 compared to 2018, particularly in diagnostics (+ 524%), prevention (+ 244%) and digital health (+ 205%). By contrast, the share of health care in total healthcare spending will be reduced by almost 16%. This represents a reduction of about $ 1.2 billion globally by 2030.

"In our research, health managers expect unsafe times for their current business model. Traditional pharmaceutical companies either need to become much more effective in maintaining their margins, or invest in growth areas such as diagnostics, prevention, and digital healthcare solutions. The number of partnerships, acquisitions and ventures of major players such as Amazon, Alphabet, Apple, Alibaba and Tencent have increased twelve times in the health sector by 2014. and today, more than 6,000 health-related patents, "Dr. Thomas Solbach, Partner in Strategy & Germany and Principal Author of the Study.

Among the surveyed pharmaceutical managers, the vast majority are confident that change is inevitable for their own industry. 96% agree with the statement that health care will focus on informed and self-determined people in the future and focus on preventive, personalized and integrated digital services. Diseases are only treated partially because they do not occur at all or much later because of the focus on preventive measures. According to managers, the new ecosystem will be developed based on innovative organizational and business models and changing regulatory requirements. 68% of respondents expect this vision of the future to become a new standard by 2030 at the latest. 75% see it as an opportunity for their businesses, as long as the pharmaceutical industry is ready to make a change active and comprehensive. So far, however, only 25% of them have taken a holistic approach to addressing these challenges.

"For pharmaceutical companies in Switzerland, these challenges are also an opportunity. But only those who are early enough will be able to use the change. Technological companies entering the healthcare market have multiple initial benefits with regard to new growth areas. With its client focus, access and data processing, and agile innovations, its business models are, in many ways, closer to rapidly developing digital medicine as a pharmaceutical company. Traditional players, with their advancement in medical expertise and commercialization of medical devices, have to find completely new ways to overcome decades of development and quickly build new digital skills to secure their market share, "explains Dominik Hotz, head of the healthcare industry at PwC Switzerland. .

Surveyed pharmaceutical managers see technology companies as change drivers, while regulators are clearly rated as brakes. From their own organizations, respondents have a mixed picture: first, they see the creation of digital consciousness and corporate culture as the biggest internal challenge (70%), followed by the development of currently missing skills (47%) and the overcoming of structural abilities. Obstacles (35%). Outside, regulatory and legal obstacles are the main concerns (71%), as well as the availability and access rights of required data sets (37%) and ethical issues (22%).

The full results of the Health Future Study can be found at



The study interviewed 120 managers from leading global pharmaceutical companies from all major organizational and therapeutic areas. Two thirds of the participants came from organizations with over $ 10 billion in revenue. Research results are complemented by selective interviews with leading world physicians and scientists.