Opportunities in Asia for Leading-edge Australian Health-Tech Companies
The healthcare industry in Asia has seen rapid growth in recent years, driven by an ageing population, an increase in chronic diseases and a growing demand for high-quality medical services. According to McKinsey, the healthcare market in Asia is expected to reach US$4.5 trillion by 2023, making it one of the most attractive markets for health-tech companies looking to expand their reach. The Hong Kong-Greater Bay Area (GBA) is one of the most dynamic and rapidly growing markets in Asia and will appeal to leading-edge Australian health-tech entrepreneurs, start-ups, scale-ups and established healthcare companies with plans to capitalise, commercialise and scale their capabilities into the Asian region.
The Hong Kong-Greater Bay Area
The Hong Kong-Greater Bay Area (GBA) is a vibrant and fast growing region located in southern China, encompassing nine cities in the Guangdong province, including Hong Kong, Macau, and Shenzhen. With a combined population of over 70 million people, the GBA is one of the largest and wealthiest urban regions in the world, with a GDP of $1.6 trillion in 2020 (an economy larger than Australia)
The GBA has become a hub for health-tech innovation in recent years, with the Chinese government investing heavily in the development of the healthcare industry (US$1.6 billion invested in 2019).
Emerging Opportunities and Trends
1. Telemedicine and Digital Health
The COVID-19 pandemic has accelerated the adoption of innovative telemedicine and digital health solutions in the GBA, with patients and healthcare providers seeking alternative ways to deliver and receive medical services. According to Deloitte, the telemedicine market in China is expected to grow by 30% p.a. between 2020 and 2025, reaching US$25 billion by 2025.
Case Study: Ping An Good Doctor, one of the largest telemedicine platforms in China, has been expanding its operations in the GBA, partnering with hospitals and clinics to offer online consultations, health management services, and AI-powered diagnosis tools. In 2020, the company announced plans to build a new healthcare centre in Shenzhen, equipped with cutting-edge medical technologies and staffed by experienced healthcare professionals.
2. Personalised Medicine and Genomics
The rise of personalised medicine and genomics has created new opportunities for health-tech companies in the GBA, with patients and healthcare providers seeking more targeted and effective medical treatments. According to a report by IQVIA, the precision medicine market in China is expected to reach US$30 billion by 2025, driven by advances in genomics, AI, and big data analytics.
Case Study: BGI Group, a leading genomics company in China, has been expanding its operations in the GBA, partnering with hospitals and research institutions to offer genetic testing and research services. In 2020, the company announced plans to build a new genomics research and development centre in Guangzhou, equipped with advanced genomics technologies and staffed by leading scientists and researchers.
3. Medical Devices and Diagnostics
The medical devices and diagnostics market in the GBA has been growing rapidly in recent years, driven by an increase in chronic diseases and a growing demand for high-quality medical services. According to a report by IQVIA, the medical devices market in China is expected to reach US$100 billion by 2025, with an annual growth rate of 7.1% between 2020 and 2025.
Case Study: ResMed, a global leader in sleep apnea treatment, has been expanding its operations in the GBA, partnering with hospitals and clinics to offer its innovative sleep apnea products and services. In 2020, the company announced plans to establish a new R&D centre in Guangzhou, focused on developing new products and technologies for the Chinese market.
4. Healthcare Data Analytics and Artificial Intelligence (AI)
The adoption of healthcare data analytics and AI has created new opportunities for health-tech companies in the GBA, with healthcare providers seeking more efficient and effective ways to deliver medical services. According to Deloitte, the healthcare AI market in China is expected to reach US$5.9 billion by 2022, growing by 40.6% between 2017 and 2022.
Case Study: Tencent, one of the largest technology companies in China, has been expanding its operations in the healthcare industry in the GBA, partnering with hospitals and clinics to offer its innovative AI-powered healthcare solutions, including medical imaging analysis and intelligent diagnosis systems.
The Hong Kong-Greater Bay Area presents a wealth of opportunities for Australian health-tech companies looking to raise capital, expand their market reach and achieve sustained growth and success in one of the most dynamic and exciting markets in Asia. To take advantage of these opportunities, the following steps will be important when planning for success in Asia:
- Understand the unique needs and preferences of Chinese consumers and healthcare providers and develop products and solutions that resonate with them.
- Build strong partnerships with local hospitals, clinics, and research institutions to expand your market reach and increase your visibility in the market.
- Use data analytics and AI to gain deeper insights into healthcare trends and patient needs and optimise your products and services accordingly.
- Stay up-to-date on the latest regulatory requirements and healthcare trends in the market, and be prepared to adapt quickly to changing market conditions.
- Focus on developing products and services that meet the growing demand for telemedicine, personalised medicine, medical devices, and healthcare data analytics and AI.
- Invest in building a strong supply chain that is agile and adaptable, and can respond quickly to changing consumer demands.
- Consider targeting the unique needs and preferences of consumers in the different cities in the GBA and building a local team with deep knowledge of the market and the cultural nuances of doing business in the region.
By following these steps, leading-edge Australian health-tech companies can successfully navigate the complex landscape of the GBA market and achieve sustained growth and success in one of the most dynamic and exciting markets in Asia. With a strategic and well-informed approach, Australian companies can tap into these opportunities and position themselves as credible thought leaders in the health-tech space in Asia.
For more information on our Australian Health-Tech Mission to Asia in May 2023, please visit our website: www.apacfinancialservices.com/healthtechmission