Market Review
and Outlook
Globally, healthcare continues to be an
attractive and fast growing industry. In
the Asia-Pacific region alone, healthcare
spending is expected to grow at a rate
of 7.1% from 2013 to 2017
1
. Within
India, healthcare spending is expected to
increase at a rate of 17% a year. Double
digit annual growth is also expected in
Thailand, Philippines and Malaysia as
their health insurance systems expand.
RHT is currently participating in the
growth of the Indian healthcare industry
where it owns 18 healthcare related
infrastructure assets across the major
cities of India.
DRIVERS OF GROWTH IN
THE INDIAN HEALTHCARE
INDUSTRY
The Indian healthcare sector is valued
presently at USD65.0 billion
2
and is
estimated to be valued at USD155.0
billion by 2017
2
and USD280.0 billion
by 2020, with a Compound Annual
Growth Rate (''CAGR'') of 17% over
2011 – 2020
3
. The Indian healthcare
market consists of government and private
hospitals, pharmaceuticals, diagnostics,
medical equipment, medical insurance
and telemedicine.
It is one of the fastest growing sectors where
rising affluence and urbanisation in the
country has increased the awareness and
ability of the people to spend on medical
treatments. At the same time, the change
in lifestyle has also resulted in increasing
incidences of lifestyle related diseases
leading to an increase in demand for high
quality and specialist healthcare services.
This has brought about a new emerging
trend of luxury offerings in the healthcare
sector as well as the fast penetration of
health insurance. While medical tourism
is still at a nascent stage in India, the
comparatively lower cost of medical
treatments in India as compared to
other countries is expected to drive
the growth in this segment of the
healthcare industry. The Indian
government has also adopted some policies
aimed at promoting the growth of the
healthcare industry.
GROWING HEALTHCARE INDUSTRY
3
280.0
160.0
81.3
72.8
68.4
59.5
51.7
45.0
2008
2009
2010
2011
2012
2014
2017F
2020F
300
250
200
150
100
50
0
INDIAN HEALTHCARE SECTOR GROWTHTREND
(USD BILLION)
CAGR
17%
3.0
3.0
5.0
2.0
3.0
1.0
2.0
INCREASING IN-PATIENT VOLUMES DUE TO LIFESTYLE DISEASES
3
CARDIAC
ONCOLOGY
DIABETES
8
6
4
2
0
NO. OF HOSPITALISED CASES
(MILLION)
2008
2013F 2018F
8.0
4.0
ANNUAL REPORT FY2015
9
