HealthMarket Review

Welltory

Total healthcare market equals to

$12 T

Healthcare is a huge industry

Pharmaceutical industry -$1 trillion

Doctors and therapists – $4,7 trillion

Medical equipment, tests, nursing, hospitals and so on

Wellness - $3.4 trillion

And it grows every year

Healthcare market grows gradually due to population ageing. Costs of healthcare increase as well. In US it is predicted to take 20% of the entire economy by 2024. On a global scale these costs total to about 10% and are growing slower.

1980-2013 1995-2014

And it grows every year

Vitamins and supplements will grow by 58%

Natural cosmetics - by 74%

Fitness industry has grown by $10 billion over last 5 years

Many people can't pay their healthcare bills so they want to prevent getting sick

Inability to cover healthcare costs became number 1 bankruptsy reason in the US in 2013 (around 60% of all filings, more that 600,000 people).

So to spend less money people want to prevent getting sick: lead healthier lifestyle and use preventive helthcare to track body changes on earlier stages.

Preventive healthcare is expected to grow from $72.8 bln in 2013 to $144.8 bln by 2020.

Vitamins and supplements will grow by 58%

Natural cosmetics - by 74%

Fitness industry grew by $10 billion over last 5 years

Many people can't pay their healthcare bills so they want to prevent getting sick

$72.8 bln2013

$144.8 bln2020

Returns on preventive healthcare investments reach

$5,6 for $1 invested.

So let's take a closer look at someof these preventive measures.

Wellness — is about leading and maintaining a healthy lifestyle.

$3,4 T

Fitness - $446 blnHealthy food -$574 bln

Corporate wellness - $41 bln

Wellness-facilities -$100 bln

Wellness-tourism -$494 bln

Beauty and anti-aging - $1 TSPA and thermal baths -

$144 bln

Personalized and preventive healthcare - $433 bln

Complementary and alternative healthcare - $187 bln

Healthcare consists of many componentsbut some of them are inefficient

Market is already big, grows by 7,7% anually and equals to

Healthcare consists of many componentsbut some of them are inefficient

The problem is that many treatment approaches don't have enough scientific proof of its effieincy on human health

So how do we prevent getting sick?

We find efficient treatmentmethods based on data

Fitness-tracker Jawbone UP2

Tracks amount of steps, sleep phases

There are lots of existing sensors that can track data about...

What happens to a human body

What we feel What happens around us

Vessyl smart cup

Tracks hydration level, calories and caffeine

AliveCor smartphone cover

Makes high-precision ECG and pulse measures

Smart clothes OM Signal

Measures ECG, breath, stress levels

Lapka PEM sensor set

Measures electro-magnetic field, radiation, nitrates and humidity

Air Quality Egg set of sensors

Measures NO2 and CO levels

And the amount of sensor users will grow anually

12

25 bln - number of connected things used in 2020

$41,8 bln – mHealth device marketin 2023

$19,6 bln – environment monitoring device market by 2019

And grow even more

By 2020 the number of wearables will grow 3.3 times, while the percentage of health and actvity trackers will remain almost the same.

And device market will continue to grow

13

$41.8 bln – mHealth device market in 2023

$19.6 bln – environment monitoring device market by 2019

50% - lifestyle20% - environment

20% - genetics10% - medical healthcare

70%30%

Is lifestyle

Lifestyle and environment are more important for human health than medicine

Health is not just about medical care. Changing your lifestyle will make larger impact on your health. So tracking lifestyle data makes sense.

A lot of health data has already become trackable and managable

Genetics

Environment

Human health

Genetic test results

Data from systems like:Smart home,

Smart city

Data from wearables, smartphone apps, Internet of Things

Data

Lifestyle

A recent research shows that large amounts of health and behaviour data tracked through mobile devices can only be used to raise people's awareness about what happens.

To make meaningful decisions based on that data it should be enriched with context and expertise.

However, the data is enough to build predictive models. Full personalization makes any health component managable.

So health industry is becoming transformed by this data into a Digital Health industry

Music industry

Education

Investments

Yesterday

Adapted for a user — you can choose and listen whatever

and wherever you want

New business models including online education

Tracks data about every website visitor, comment,

behaviour

Managed based on precise data

Health & Wellness

Today Tomorrow

Marketing

With the rise of digital technologies many traditional industries were transformed to meet users' demand.

Health industry starts going through a similar transformation as it's becoming easier to get data and needs of each particular person.

So health industry is becoming transformed by this data into a Digital Health industry

The effect of any pill will be predictable for each patient based on his/her health data. It could then be printed out individually.

Research will become data modelling, its costs will drop significantly, it will become exploratory.

A computer will know more than any doctor whose knowledge will become outdated really fast.

Investments in Digital Health industry grow every year

A proportion of invesments made into Digital Health startups rapidly increases

Venture Funding2014-H1 2016

Invesmtens top $4 bln for a 3rd year in a row

Amount of digital health startup investments exceeded $4.3 bln a year for last 2 years and the same trend is going strong in 2016

Submarket investments are also impressive

Investment volumes for the H1 2016 almost equal to 50% of collective investments for 2011-2015

M&A-activity is very intense

In 2015 and 2016 the majority of acquired companies comes from Digital Health sector

Experts believe in digital health industry

"Doctors can be replaced by software –80% of them can. I'd much rather have a good machine learning system diagnose my disease than the median or average doctor."

Vinod Khosla – Khosla Ventures

“Digital Health feels like the PC industry in the early '80's.”

John Sculley – Former CEO of Apple and PepsiCo

Experts believe in digital health industry

Personalized Preventive

PredictiveEverything will be based on facts and could be proven for any given person or a group.

ParticipatoryFinally people will become more demanding and aware.

Healthcare approach will be changed dramatically based on human data

People want NOT to get fat, NOT to get stressed, NOT to get sick, NOT to get old.

People with their goals, motives, behaviour, environment are totally different.

People already have problems that can be solved based on data

30mln

Take anti-depressants

37mln

Suffer from migraines

40 mln

Suffer from insomnia

45mln 117 mln

Are dieting

Have chronic deseases

Only among adults in the US:

In the US alone more than 100 mln people suffer from these health problems. There are over 600 mln of them globally.

Only among adults in the US:

Available data can already help people take care of their healh more efficiently

44 mln - balance their healthy diet, weight control and sport activities

46 mln fans of everything «organic» and «natural».

56 mln – actively buying supplements and vitamins

44

56

46

In the US alone about 146 mln people take care about their health. There are more than 876 mln of them globally.

Users need help interpreting and researching data on themselved to get healthier

444 mln

311 mln

53 mln

People having problems and/or needs about their health (~740 mln)

Active core audience17% Already tracking their health with apps or devices

Motivated audience70% Interested in buying wearables

Potential audience60% Smartphone users

Companies need help in making their employees more efficient

35 mln

14 mln

3,6 mln

Companies want to get more data about employees, to reduce costs and improve their products (~45 mln)

8% companies are getting the data and are ready to use it

32% companies are ready in install these systems

77% want to get data through people analytics systems to make HR decisions based on this data

People already spend hundreds of dollars on healthier lifestyle

The price for a personal coach in the US varies from $10 to $50 an hour. In some cities it gets to $100.

Avarage price of a gym pass without a coach fee - $58

A price for a personalwellness coach - from $25 to $100 an hour or $50,000 - $100,000 a year

Healthy food expendituresvary from $50 to $350 a month

Amount spent on appsequals to $35 a year

People spend about $1200 a year on gadgets and electronics

Companies already spend thousands of dollars per person to monitor and increase work efficiency

Medical insurance cost companies about $1,077 per employee a year

Companies spend from $2,112 to $4,434 per employee a year) on HR systems that help analyze work efficiency

Corporate wellness programscost companies $693 per employee a year

So everyone needs more data to take care of their health cheaper and more effective

$0,0005 – price for basic information about a person. $0,26 –price for enriched data with illnesses and medications

In the US along marketing companies and pharmaceutical companies spend $25 mln a year to buy data about retail consumers

One of the largest data-brokers Acxiom earned $1.1 bln in 2011 selling data about 144 mln households

Healthcare data analytics market volume is evaluated at $5,8 bln and is predicted to reach $18,7 bln by 2020. Total user information market volume was evaluated in 2011 at $300 bln

Winning strategy is to make sense of these large amounts of data

Analize dataMake senseHelp people

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