Growth Opportunities for KSA Healthcare Industry, Forecast to 2020

Growth Opportunities for KSA Healthcare Industry, Forecast to 2020

The Extent of Privatization, Localization, and Digitalization will Determine the Future of the KSA Healthcare Market

RELEASE DATE
17-Apr-2020
REGION
South Asia, Middle East & North Africa
Research Code: PB0A-01-00-00-00
SKU: HC03283-SA-MO_24319

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Description

Amid the volatility in oil prices and dampened global economic growth due to the outbreak of COVID-19, the Kingdom of Saudi Arabia (KSA) healthcare market is expected to grow to $16.1 billion in value at 8.8% in 2020. KSA’s pharmaceutical and MedTech markets are primarily import driven, therefore the impact of COVID-19 cannot be measured in terms of incidence of COVID-19 in KSA but in terms of the disruption in the global supply chain of the EU and China, which will impact the KSA healthcare industry.

Health and social development is the key sector in the KSA government, as it holds 16.4% of the country’s budget expenditure, the third-largest share in 2020. There has been a relative decrease in the allocation of healthcare budget which can be attributed to the increase in private player participation and the focus on preventive care through various awareness programs. KSA free public healthcare system (Saudi citizens and public sector workers) is essentially funded by oil revenue which is under great strain. The rising cost of medical technologies, the changing demographic profile, the increasing prevalence of chronic diseases, and the increasing demand for quality healthcare are putting pressure on the KSA healthcare system to adopt cost-containment measures.

For KSA, 2020 will be a reality check on its National Transformation Program (NTP 2020), the biggest vision realization program of its ambitious Saudi Vision 2030. KSA’s top priorities in the healthcare sector are to enhance the role of the private sector through privatization of government healthcare services, to increase public-private participation (PPP) healthcare delivery models, to scale up medical education and training of its local workforce and to boost the adoption of digital information systems, thereby creating a plethora of opportunities for investors, pharmaceutical and MedTech manufacturers, healthcare IT vendors, and support services.

The low level of domestic pharmaceutical drug production (about 20% to 30%), coupled with the ambition to diversify into non-oil sectors (e.g., bioeconomy) will continue to make the localization of pharmaceuticals manufacturing a lucrative opportunity for KSA in 2020. In addition, the disruption of the global supply chain due to COVID-19 outbreak can create a shortage of APIs, drugs, medical products, and equipment. To reduce its dependence on imported drugs, KSA can upscale its manufacturing capacity and strive to become an alternative supplier in 2to 3 years. Government initiatives to increase local pharmaceutical manufacturing through public-private partnerships have led to the increasing collaboration between the domestic and global pharmaceutical formulation manufacturers, creating a win-win situation for both and making KSA a potential generic manufacturing hub of the MENA region.

Despite the presence of several general hospitals, there are supply gaps for several specialty areas, spurring governments to harness PPP models to build specialty clinics for gynecology, oncology, and cosmetology. Lifestyle disorders and the shift toward wellness and preventive care will boost the demand for remote health monitoring solutions that leverage Artificial Intelligence (AI) platforms. This will catapult investment toward non-hospital settings, such as long-term rehabilitation centers, and fitness and wellness centers.

The private sector has a larger role to play in filling the demand-supply gap in healthcare infrastructure and services. The increasing number of private hospitals will bridge the gap of quality and accessibility of healthcare services in public hospitals which is a major concern in healthcare delivery. The increase in investments in enterprise healthcare IT solutions and connected medical devices with AI capabilities that drive efficiencies will play a major role in the shift to a performance-based value system.

KSA will continue to hold the largest share in the MENA healthcare market. An increasingly affluent population will drive the demand for research-based branded generic drugs, connected medical devices, next-gen Imaging equipment, quality point-of-care diagnostic tests, and digital health solutions.

Research Scope

Every year, futurists, analysts, and consultants at Frost & Sullivan's Transformational Healthcare Group come together to render a comprehensive analysis of themes, technologies, and global forces that will define the next 12 or 18 months of the healthcare industry.

This Frost & Sullivan research service provides deep perspectives and bold predictions for the global healthcare market in 2020. Pharmaceuticals and biotech, in-vitro diagnostics, medical technologies, medical imaging, and healthcare IT are some of the sectors covered. The analysis captures sectoral and regional trends and offers predictions for the upcoming year. The study provides guidance on where to find the greatest opportunities for expansion.


Key Issues Addressed

  • What are the top predictions for the KSA healthcare industry for 2020?
  • What are the market revenue and growth rates expected for the KSA healthcare market?
  • What are the key projections and growth opportunities for major healthcare segments?
  • What are the major macroeconomic and demographic factors that will affect the KSA healthcare industry?
  • What are the key technologies and growth opportunities to watch out for in 2020?
  • What are the key companies to watch during 2020?

Author: Surbhi Gupta

RESEARCH: INFOGRAPHIC

This infographic presents a brief overview of the research, and highlights the key topics discussed in it.
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Table of Contents

Top 5 Predictions for the 2020 KSA Healthcare Industry

Impact of COVID-19 Outbreak on KSA Healthcare Industry Predictions

The Impact of the COVID-19 Outbreak on the KSA Healthcare Industry

KSA Macro Trends

KSA Healthcare Industry Revenue, 2019–2020

Key Growth Opportunities by Sector

Research Scope

Prediction #1: KSA will Become the Branded Generics Manufacturing Hub of MENA Region.

Prediction #2: Focus on Wellness and Preventive Care will Catapult Investment Toward Non-hospital Settings.

Prediction #3: KSA Healthcare Expenditure on Diabetes and Other Lifestyle Disorders will Increase.

Prediction #4: KSA Will Emerge as the Fastest Growing Digital Health Market in the GCC Region.

Prediction #5: The Demand for Specialty Clinics and Ambulatory Care Center will Drive Privatization.

KSA Macroeconomic Healthcare Determinants

KSA Healthcare System Overview

KSA Hospital and Bed Density

Healthcare Financing in KSA

KSA Demographic Overview

Pharmaceuticals and Biotechnology—Revenue Forecast

Pharmaceuticals and Biotechnology—Key Growth Opportunities

Pharmaceuticals and Biotechnology—Companies to Watch

In vitro Diagnostics—Revenue Forecast

In vitro Diagnostics—Key Growth Opportunities

In vitro Diagnostics—Companies to Watch

Medical Technologies—Revenue Forecast

Medical Technologies—Key Growth Opportunities

Medical Technologies—Companies to Watch

Medical Imaging—Revenue Forecast

Medical Imaging—Key Growth Opportunities

Medical Imaging—Companies to Watch

Healthcare IT—Revenue Forecast

Healthcare IT—Key Growth Opportunities

Healthcare IT—Companies to Watch

Conclusion

Legal Disclaimer

Market Definitions—Pharmaceuticals and Biotechnology

Market Definitions—IVD

Market Definition—Medical Technologies

Market Definition—Medical Technologies (continued)

Market Definition—Healthcare IT

Market Definition—Medical Imaging Equipment

List of Exhibits

List of Exhibits (continued)

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
Amid the volatility in oil prices and dampened global economic growth due to the outbreak of COVID-19, the Kingdom of Saudi Arabia (KSA) healthcare market is expected to grow to $16.1 billion in value at 8.8Percentage in 2020. KSA’s pharmaceutical and MedTech markets are primarily import driven, therefore the impact of COVID-19 cannot be measured in terms of incidence of COVID-19 in KSA but in terms of the disruption in the global supply chain of the EU and China, which will impact the KSA healthcare industry. Health and social development is the key sector in the KSA government, as it holds 16.4Percentage of the country’s budget expenditure, the third-largest share in 2020. There has been a relative decrease in the allocation of healthcare budget which can be attributed to the increase in private player participation and the focus on preventive care through various awareness programs. KSA free public healthcare system (Saudi citizens and public sector workers) is essentially funded by oil revenue which is under great strain. The rising cost of medical technologies, the changing demographic profile, the increasing prevalence of chronic diseases, and the increasing demand for quality healthcare are putting pressure on the KSA healthcare system to adopt cost-containment measures. For KSA, 2020 will be a reality check on its National Transformation Program (NTP 2020), the biggest vision realization program of its ambitious Saudi Vision 2030. KSA’s top priorities in the healthcare sector are to enhance the role of the private sector through privatization of government healthcare services, to increase public-private participation (PPP) healthcare delivery models, to scale up medical education and training of its local workforce and to boost the adoption of digital information systems, thereby creating a plethora of opportunities for investors, pharmaceutical and MedTech manufacturers, healthcare IT vendors, and support services. The low level of domestic pharmaceutical drug production (about 20Percentage to 30Percentage), coupled with the ambition to diversify into non-oil sectors (e.g., bioeconomy) will continue to make the localization of pharmaceuticals manufacturing a lucrative opportunity for KSA in 2020. In addition, the disruption of the global supply chain due to COVID-19 outbreak can create a shortage of APIs, drugs, medical products, and equipment. To reduce its dependence on imported drugs, KSA can upscale its manufacturing capacity and strive to become an alternative supplier in 2to 3 years. Government initiatives to increase local pharmaceutical manufacturing through public-private partnerships have led to the increasing collaboration between the domestic and global pharmaceutical formulation manufacturers, creating a win-win situation for both and making KSA a potential generic manufacturing hub of the MENA region. Despite the presence of several general hospitals, there are supply gaps for several specialty areas, spurring governments to harness PPP models to build specialty clinics for gynecology, oncology, and cosmetology. Lifestyle disorders and the shift toward wellness and preventive care will boost the demand for remote health monitoring solutions that leverage Artificial Intelligence (AI) platforms. This will catapult investment toward non-hospital settings, such as long-term rehabilitation centers, and fitness and wellness centers. The private sector has a larger role to play in filling the demand-supply gap in healthcare infrastructure and services. The increasing number of private hospitals will bridge the gap of quality and accessibility of healthcare services in public hospitals which is a major concern in healthcare delivery. The increase in investments in enterprise healthcare IT solutions and connected medical devices with AI capabilities that drive efficiencies will play a major role in the shift to a performance-based value system. KSA will continue to hold the largest share in the MENA
More Information
No Index No
Podcast No
Author Surbhi Gupta
Industries Healthcare
WIP Number PB0A-01-00-00-00
Is Prebook No
GPS Codes 9600-B1,9612-B1,9A52-B1,99BB-B1,99BF-B1,9A4B-B1,99BE-B1,9611-B1,9614-B1,9627-B1