Written by : Jayati Dubey
January 28, 2025
The report highlights the significant role played by Indian Contract Development and Manufacturing Organizations (CDMOs) in this transformation.
The Asia-Pacific healthcare market is set to reach $5 trillion by 2030, contributing to 40% of the sector’s global growth, according to a report released by the Boston Consulting Group (BCG) on Monday.
The report attributes this unprecedented expansion to rapid demographic changes, increased investments, and advancements in healthcare technologies.
The report highlights the significant role played by Indian Contract Development and Manufacturing Organizations (CDMOs) in this transformation.
These companies are expanding globally, leveraging cost efficiencies while also making early advancements in complex and emerging therapeutic modalities such as antibody-drug conjugates (ADCs) and oligonucleotides.
“Innovation is emerging as a key driver of growth in Asia’s healthcare landscape. Indian CDMOs are scaling globally, not only due to cost efficiencies but also by venturing into sophisticated therapies, enhancing their global competitiveness,” said Smruthi Suryaprakash, Partner at BCG.
She further emphasized that decades of investment in biotechnology across the region are now yielding results, with India and Singapore driving breakthroughs in new therapies.
These developments underscore Asia’s potential to lead healthcare innovation on both regional and global scales.
Despite being home to 60% of the world’s population, Asia accounts for only 22% of global healthcare expenditure.
The report stresses the need for region-specific solutions, as chronic conditions such as diabetes and cancer disproportionately affect Asia. Notably, liver and stomach cancers are more prevalent in Asia than in Western nations, necessitating localized healthcare approaches.
Furthermore, Asia’s healthcare system is undergoing a transformation due to a rapidly aging population and existing infrastructure gaps.
The report identifies key areas for innovation, including contract manufacturing, biotechnology-driven research, specialty hospital care, and digital health models incorporating omnichannel patient journeys.
Priyanka Aggarwal, Managing Director of Healthcare Practice at BCG, highlighted that Asia is at a pivotal moment where multiple favorable factors are converging.
These include shifting demographics, foreign direct investment (FDI) flows favoring Asia, and the increasing burden of chronic diseases. Additionally, evolving patient expectations are driving demand for improved healthcare delivery models.
“We are at a unique point where Asia’s healthcare sector is experiencing multiple tailwinds, including trade flows and foreign investment favoring the region, coupled with rising chronic disease burdens and an increasingly active and demanding patient base. These factors present opportunities to reimagine healthcare delivery in Asia,” Aggarwal said.
The report serves as a roadmap for healthcare companies and investors, urging them to address key challenges and prioritize immediate healthcare needs.
It calls for innovation to overcome inefficiencies in existing healthcare models and emphasizes Asia’s growing role in shaping the future of global healthcare.
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