Healthcare Market

MPH's strategic focus is on investments in the healthcare market, one of the most important future markets worldwide. It is shaped by global trends such as demographic development (increasing life expectancy), rising incomes and medical progress.
As a result, health expenditure and the health industry's share of the gross domestic product are rising continuously.

As one of the largest economic sectors, the health industry is a lead market and employment driver of the German economy. It is divided into two sectors: The "First Healthcare Market" includes the area of "classic" healthcare, which is largely financed by statutory (GKV) and private health insurance (PKV). The "Second Healthcare Market" is defined as all privately financed products and services. This essentially comprises over-the-counter medicines and individual health services including outpatient and inpatient medical interventions. This is because more and more people are willing to invest in their health, their fitness and a good attitude to life. For this purpose, the supply of the primary healthcare market is not sufficient for them and they use services and products that serve to maintain their health or well-being. These include healthy nutrition as well as sports, wellness, but also beauty treatments. MPH invests in both segments of the healthcare market, with a focus on the areas of aesthetics, chronic diseases and digitalisation.

Annual healthcare expenditure in Germany in the years 1993 - 2019 (in billions of euros)

Volume of the German healthcare market in sectors (year 2017, in billion euros)

Aesthetics

The market for medical aesthetic treatments is a growth market within the healthcare industry. The driving force is the increased social desire to maintain the natural beauty and performance of the body into old age. At the same time, the social acceptance of beauty enhancement has increased significantly in recent years. The market includes not only surgical and non-surgical treatments, but also high-quality beauty care products.

Chronic Diseases

According to the WHO, chronic diseases are diseases that last a long time and progress slowly. They include heart disease, cancer, chronic respiratory diseases and diabetes. Worldwide, chronic diseases are among the leading causes of death. In western countries, they occur predominantly among older people. Precisely because chronic diseases increase with age and the population as a whole is getting older, the importance of chronic diseases is increasing, as they cause more and more costs in addition to physical suffering. Their prevention and treatment now account for a large share of total health expenditure.

Demographic development and social trends

Age structure in Germany in the years 2015 - 2050

Development of the pharmaceutical market in Germany

Digitalisation

Digitalisation is playing an increasing role in the healthcare market. Digital technologies are helping health systems transition to new models of patient-centred care. They help them develop "smart health" approaches to improve access, affordability as well as quality and reduce costs. Blockchain, RPA (Robotic Process Automation), cloud, artificial intelligence (AI) and robotics to the Internet of Medical Things (IoMT) as well as digital and virtual reality are just some of the ways technology will impact healthcare in the future.

According to the new Roland Berger study "Future of Health 2 - The rise of healthcare platforms" from October 2020, the expected growth of the digital healthcare market in Europe has increased to 232 billion euros by 2025, an increase of almost 50 percent. For Germany, the forecast is 57 billion euros. The experts assume that the Covid 19 pandemic will accelerate the digitisation process of the industry by about two years overall. The experts assume that the greatest growth will come from digital disease prevention and AI diagnostics. These applications are followed by AI-based therapy decisions and digital therapies. The market volume for health, diagnosis and self-monitoring apps is also expected to increase strongly by 2025.