Succeed in Germany‘s Healthcare Market · Global Digital Health Market Projection Global digital health market 2013-2020 in USD billion The global digital health market will more

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30.11.2015

Succeed in Germany‘s Healthcare Market

GTAI Seminar @ MEDICA 2015

Brief Introduction to Germany Trade and Invest

Germany’s healthcare system and market

Growing your business in an aging society

Realize opportunities in connected health

Market Access

Funding and partnering options in medical technology clusters

Agenda


November 2014 2Germany Trade & Invest

Germany Trade and Invest is the foreign trade

and inward investment promotion agency of

the Federal Republic of Germany.


3Germany Trade & Invest

www.gtai.com

November 2015 www.gtai.com

We help international companies

establish business operations

in Germany.


4Germany Trade & InvestNovember 2015 www.gtai.com

Publications


Germany Trade & Invest 5November 2015 www.gtai.com

Individual Consulting:

Market and industry reports

Market entry analyses

Site selection

Partnering

Tax and legal information

Funding and financing

Our services:


6Germany Trade & InvestNovember 2015 www.gtai.com

Healthcare Market Germany

One of Germany’s largest growth markets at a glance

7

80.8 million inhabitants

70 million people have public health

insurance

124 public and 45 private health

insurance companies

5.16 million people are

employed in the German healthcare industry

9 million people

privately insured

Source: Statistisches Bundesamt 2015; Bundesministerium für Gesundheit 2015

EUR 315 billion

healthcare expenditure

21,000 pharmacies

1996 hospitals

with 500,671

beds

11.3 % of GDP

208,000 GPs,

dentists and other specialists

2.3 million other

healthcare professionals

3 % p.a. growth

rate healthcare

sector

November 2015 Germany Trade & Invest www.gtai.com

www.gtai.com

Healthcare Market Germany

158

195

212

234

288300

315

0

50

100

150

200

250

300

350

1992 1996 2000 2004 2010 2012 2013

Healthcare expenditure in Germany 1992-2013 (in EUR billion)

Healthcare expenditure in Germany exceeded the EUR 300 billion mark

Source: Statistisches Bundesamt 2015

8Germany Trade & InvestNovember 2015

www.gtai.com

Private

694

(35%)

Charity

based

706

(35%)

Public 596

(30%)

1996 Hospitals

Germany has 1996 hospitals under either private, charity based or public

ownership

Source: Statistisches Bundesamt (Hrsg.), Grunddaten der Krankenhäuser 2013

Germany‘s Healthcare Market – hospitals

9

Number of hospitals and

ownership in 2013

16.2%

34.8%

40.4% 35.4%

43.5%

29.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

private charity based public

Development of share of hospital

ownership 1993-2013

Germany Trade & InvestNovember 2015

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Germany‘s Healthcare Market – medtech spotlight

German Expenses and

German Production

Germany spends € 28 bn on medical technology p.a.

Source: BVMED – Branchenbericht 2013


German Market Segments

0

5

10

15

20

25

30

German Market Size German Production

Exports

Sold in

Germany

Medical Devices

€ 12.6 bn

44%

Medical Aids

€ 14.7 bn

52%

Dressings

€ 1 bn

4%+4%

28 bn

22.3 bn

November 2015

www.gtai.com

Germany‘s medical technology industry is comprised of more than

11,000 companies with about 175,000 employees.


Germany Trade & Invest 11

Source: BVMed Annual Report 2012

> 20 employees

~ 1,250 companies

Total: ~ 98,900 employees

< 20 employees

~ 10,000 companies

Total: ~ 75,000 employees

~ 86 %; < 100 employees

~ 11 %; 100 – 499 employees

~ 3%; > 500 employees

November 2015

www.gtai.com


Ranking of Products Made in

Germany

(Share of Total Medtech

Production)

Despite a competitive domestic medical device industry, Germany is a

significant importer.

Source: DESTATIS: Grunddaten der Krankenhäuser 2013; BVMED – Branchenbericht 2013


German Medical Technology

imports account for € 10 bn p.a.

• X-Ray and other radio active apparatus…… 30%

• Devices and Materials for Dental……………… 17%

• Prostheses and artificial joint implants……… 10%

• Endoscopes and surgical instruments…… 8%

• Orthopaedic apparatus……………………………… 6%

• EEG and other electrical diagnosti apps…… 5%

• Transfusion and Infusion…………………………… 5%

• Disposables………………………………………………… 5%

• Medical needs furniture……………………………… 4%

• Artificial kidneys…………………………………… 4%

• Apparatus for anaesthetics/breathing……… 3%

• Ophthalmic segment………………………………… 2%

• Wheel chairs…………………………………………… 1%

EU

Rest of Europe

North America

Asia

Middle- and

South AmericaMiddle East

Rest of World

33%

15%28%

1%

18%

3%

November 2015

www.gtai.com

Source: DB Research 2010, Statista 2014, Statistische Bundesamt 2014

Demographic Challenges

13

Growing demand for healthcare services drives the development of

digital healthcare solutions in Germany

Chronic Diseases• Chronic and long-term diseases account for about 80 percent of

the German healthcare spending (EUR 200 billion)• Within 14 years the number of people with diabetes mellitus has

risen from 5.8 to 7.2 million people.

Care dependency• 2020: 2.5 to 3 million • 2050: 3.25 to 4 million

Aging Society• 2035: 24 million people aged 65 years or older

(31 percent of the population)


14

Business opportunities in an aging society

Self-medication

Preventive

Healthcare

Med Tech

Medical and Technical

Aids

E-Health

Pharma

Healthcare ingredients

€ 34 Billion

(+5% vs. LYP)

€ 6.5 Billion

€ 6.8 Billion Euro

(+5% vs. LYP)Source: Statistisches Bundesamt, Statista, 2013

+4% vs. LYP

non-prescription

medicinal products:

€ 7.3 Billion

(+6% vs. LYP)


www.gtai.com

Germany‘s growing digital economy offers outstanding conditions for

new products and solutions in the healthcare industry

Source: BITKOM 2014, eMarketer 2013

Digital Market Opportunities

15

Use of Internet• Around 77 percent (63 million) of the German population

are regularly online• Most internet users in Europe

Software Market• Single largest software market in Europe • 24.5 percent of the European software market by

value

Mobile Devices• About 24.2 million smartphones were sold in 2014

(23 percent increase compared to 2012)


www.gtai.com

Global Digital Health Market Projection

Global digital health market

2013-2020 in USD billion

The global digital health market will more than double by 2017 and

exceed USD 200 billion in 2020

Source: Arthur D. Little 2014

23.8

59.7

103.2

20.024.8

29.1

6.4

24.2

55.9

0.44.5 6.3

10.1

22.6

38.9

0.0

50.0

100.0

150.0

2013 2017 2020

Wireless Health EHR / EMR Mobile Health

Telehealth Other

233.3135.9

Germany Trade & Invest 16

46%

36%

23%

6%

21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Telehealth Mobile

Health

Wireless

Health

EHR/EMR Other

60.8

Annual growth rate by segment

2013-2020 in percent

November 2015

www.gtai.com

eHealth

• market growth 2010-2020:

5% p.a.

• revenue in 2020: EUR 34 billion

Telemedicine

• market growth 2010-2020:

10% p.a.

• revenue in 2020: EUR 19 billion

Growth Market eHealth

17

eHealth

• revenue in 2013: EUR 6.5 billion

• market growth: 10% p.a.

Telemedicine

• market growth: 10% p.a.

• current market share: 25%

(expected to rise up to 30%)

GermanyEurope

Source: EU-Commission Health Information Network (HINE), Roland Berger, BCC Research DB Research 2010, Deloitte 2014

Steady growth of revenue is predicted for both eHealth and Telemedicine

in Europe and in Germany


www.gtai.com

General Practitioners

Pharmacists

Specialists

Dentists

Healthcare Professionals

Insured People

Health Insurances

Rehabilitation Centers

Hospitals

Connected Health

Source: gematik GmbH 2014, Statistisches Bundesamt 2015

2.3 million other healthcare

professionals

124 public

health insurances

80.9 million inhabitants

2,000 hospitals

21,000 pharmacies

217,000 GPs, dentists and specialists (incl. psychotherapists)

Electronic

Health Card

Germany Trade & Invest 18November 2015

www.gtai.com

Growth Market M(obile)Health

427612

8331097

1419

1743

110

123

138

154

173

194

36

53

73

98

144

186

322

407

497

593

695

755

12

25

37

52

60

69

0

500

1000

1500

2000

2500

3000

2012 2013 2014 2015 2016 2017

Advertisment Distribution & Transaction Services Software Hardware

907

1220

1578

1994

2491

2967

Development of the mHealth market in Germany through 2017

(in EUR million)

19

The German mHealth market will grow to around EUR 3 billion in 2017

Source: A.T. Kearney 2013


www.gtai.com

Health and Fitness Apps

Downloads of health and fitness apps: user share by category in

Germany in 2013

20

The most popular mHealth apps are related to nutrition and workout

Source: Statista 2015, research2guidance

21%

42%

13%

8%

3%

%

10%

3%

37%

34%

12%

5%

5%

2%

%

5%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

nutrition & calorie counting

workout

tracking

giving up smoking

apps for women

health news

sleep

othersubject to a charge

free of charge


www.gtai.com 21Germany Trade & Invest

Start in 2012:

European

Commission

Proposal

European

Parliament

First Reading

EU Council

First ReadingTrialogue

Proposal

adoption

2018 Conclusion:

Proposal

adoption

effective

Regulatory Framework Revision

Regulatory Update

Revision Timeline and Involved Bodies

November 2015

06/2015: Now: Next 2016:2014:


Market Access

Buyers and Sales Channels

▪ Hospitals

▪ Purchasing Groups

▪ Tenders

▪ Practices

▪ Care homes

▪ Homecare medical supply stores

▪ Out of pocket consumption

Multiple Buyer Options Direct Sales Preferred

▪ Digital Sales

▪ „Distributors“:

▪ License out to Manufacturers

▪ Fee-For-Service Sales Teams

▪ Agents/Sales Reps

▪ Wholesalers

▪ Consultants

▪ Direct Sales: Subsidiary



Market Access

Common Strategy: Direct Sales out of German Subsidiary

Risk class

Liability

Margin

Training

Service

Regulatory

F(x) = Need for own subsidiary in Germany

1

I IIa IIb III

X =

The need for a subsidiary depends on the product to be sold

V


www.gtai.com

9% of revenue spend on R&D

15% of the employees work in the

R&D departments

32% of the products less than 3

years old

1,381 patent applications in 2014

2nd in the world in terms of number

of med tech applications

Highly innovative industry!!!

Funding and Partnering

R&D Spending of German MedTech

Companies 2012 (bn US $)

German medical technology companies are highly innovative.

Source: Spectaris 2015, BVMed 2015, Statista 2015, European Patent Office 2015

2.4

2.72.6

2.8

2010 2011 2012 2013

24November 2015 Germany Trade & Invest

www.gtai.com


German Medical Technology Clusters

The German Medical Technology Clusters play a central role in

Germany´s med tech innovation landscape.

More than 30 specialized cluster networks focusing on medical technology.

Goal:

• connecting companies, hospitals, universities, and other research institutions

• Support continuous innovation in R&D

• help obtain funding for joint R&D projects,

• provide shared facilities, and

• organize educational training programs


www.gtai.com

A great number of funding programs on various levels are available for

medical technology companies in Germany.


Berlin

Hamburg

Bremen

Schleswig-Holstein

Mecklenburg-Vorpommern

Brandenburg

Saxony-Anhalt

Saxony

Niedersachsen

Thuringia

North-RhineWestphalia

Hessen

Rheinland-Pfalz

Bavaria

Baden-Württemberg

Saarland

Europe GermanyFederal States

Horizon 2020e.g.

BayMedPro FIT


www.gtai.com


The combination of first class companies, strong clusters and various

funding options lead to excellent cooperation possibilities.

Excellent Cooperation Possibilities

Clu

ste

rs

Co

mp

an

ies

Fu

nd

ing

German MedTech Excellence


www.gtai.com

In combination with the German Medical Technology Clusters we are the

gate to your success in Germany.


German

MedTech Cluster

Funding Options

&

Strategic Partnerships!


Berlin Headquarters

Friedrichstraße 60

10117 Berlin

Germany

T. +49 (0)30 200 099-0

F. +49 (0)30 200 099-111

www.gtai.com

Contact

© 2014 Germany Trade & InvestAll information provided by Germany Trade & Invest has been put together with the utmost care. However we assume no liability for the accuracy of the

information provided.

Germany Trade & Invest

Dr. Marcus Schmidt

Director Healthcare

T. +49 (0)30 200 099-600

[email protected]

Germany Trade & Invest

Foreign Trade and Inward Investment Promotion Agency

29Germany Trade & InvestNovember 2015

http://www.gtai.com/

mailto:[email protected]

Documents

Succeed in Germany‘s Healthcare Market · Global Digital Health Market Projection Global digital health market 2013-2020 in USD billion The global digital health market will more