The steadily growing healthcare market offers export champion Germany great opportunities – Pharmaceuticals and medical devices on the up

• Roland Berger study on behalf of Germany's Ministry of Economics shows that the global healthcare market could grow by 6% a year to USD 20 trillion by 2030
• Healthcare-related per capita spending is rising all over the world: Russia (+13%), Vietnam (+13%) and China (+12%) show the strongest growth rates
• German pharmaceuticals and medical devices are already top exports, other sectors can be improved
• Sectors such as e-health, biotechnology, training/education and medical supplies offer good growth potential
• The Export Initiative for the German Healthcare Industry provides support for German companies

The global healthcare market is set to grow by about 6% a year. By 2030 it could grow to as much as USD 20 trillion as a result of aging populations, technological progress and increasing purchasing power. Germany, in particular, stands to benefit from this trend as German healthcare exports still have a lot of potential. This is one of the key findings of a study by Roland Berger Strategy Consultants commissioned by Germany's Economics Ministry, entitled "Global healthcare – Opportunities for Germany".

"The global healthcare industry will see steady growth over the coming decades," says Dr. Joachim Kartte, Partner and Head of the Pharmaceutical & Healthcare Competence Center at Roland Berger Strategy Consultants. "This growth is driven by key factors such as aging populations, as older people need well established healthcare systems. This harbors great potential for all healthcare players."

Although the global healthcare market is growing strongly, Germany has benefited only moderately. German medical exports in 2008, for instance, accounted for no more than 6.3% of total German exports. "Germany should make better use of the global opportunities provided by the healthcare market and show its power in this key sector," says Dr. Karsten Neumann, Principal at Roland Berger.

Healthcare expected to see rapid growth

Population growth and increasing per capita healthcare spending are the main drivers of growth in the global healthcare market. The world population will grow from 6.7 billion people in 2008 to 8.3 billion people in 2030. Average per capita healthcare spending will grow by about 6% a year. Markets such as Russia (+13%), Vietnam (+13%) and China (+12%) will grow even twice as fast. As a result of aging populations, more widespread chronic diseases, technological progress and rising purchasing power, the healthcare sector is growing faster than GDP in most countries. "If these trends continue, the worldwide healthcare market will grow from USD 5.7 trillion today to approximately USD 20 trillion in 2030," forecasts Roland Berger Partner Kartte.

Germany could export more

Germany could make even better use of the growing healthcare market to push its exports. In 2008, medical products accounted for no more than 6.3% of total German exports. But the share is rising in pharmaceuticals and medical devices. In Germany's target markets USA, Saudi Arabia, Russia and Poland, most medical imports are already made in Germany. Germany is the leading pharmaceutical supplier to Russia, China, France, Poland, Turkey and South Africa. "However, Africa, the English-speaking world and Latin America also offer strong potential," says Kartte.

New industries on the up

In addition to pharmaceuticals and medical devices, new sectors are on the up. Demand for unlikely export candidates such as hospital management and emergency services as well as medical training are experiencing strong growth. Sectors such as e-health and biotechnology are continuing to grow.

"To seize the great opportunities and cope with intensifying competition on the global healthcare market, German companies should shore up and expand their position on the export market," says Kartte. To help German companies do exactly this, Germany's Economics and Health Ministries have together launched the Healthcare Export Initiative. It is designed to support in particular small and medium-sized German companies.