Health & Wellness
“Wellness is here to stay as consumers across nations plan to increase their spending on personal health, appearance, fitness, and more. If the pandemic has taught us one thing, it’s that physical and mental health will remain a priority for millions of people across the globe for a long time to come.”
McKinsey & Company 2022 Wellness Report
Likewise, since the pandemic, U.S. consumers and businesses are more focused on wellness and healthcare than ever before. According to Insider Intelligence, the US healthcare industry accounts for over 19.7% of US GDP in 2020. This includes the growing health and wellness sector, as well as new advances in healthcare technology
Healthcare spending in the U.S. is expected to balloon from $4 trillion estimate in 2020 to $8.3 trillion by 2040. The primary driver of these high costs will be affected by how fast healthcare companies adopt emerging health-focused technology. For example, Insider Intelligence estimates that US healthcare providers and facilities spent $11.36 billion on cloud-based technologies in 2020 – up 33.0% from 2019, when they spent $8.55 billion.
Insider Intelligence writes: “To offset costs, healthcare providers are leveraging the increase in consumers who want to play a more active role in monitoring their own health by encouraging tech that promotes vital tracking, early detection, and prevention of disease. Specifically, remote patient monitoring (RPM) tools, which enable a continuous stream of real-time health data between patients and their doctors, will account for much of this savings. During the pandemic, there was a rapid increase in telehealth services. This trend will continue to grow over the coming years.”
How Will This Affect Healthcare-Related Projects?
A panel of construction industry economists forecasts a 5.4 percent growth rate for the nonresidential healthcare building sector in 2022, and a 6.1 percent bump in 2023 (www.bdcnetwork.com).
McKinsey & Company’s latest research confirms the fact that U.S. consumers care deeply about wellness – and that their interest is growing. “In a survey of roughly 7,500 consumers, 79 percent of the respondents said they believe that wellness is important, and 42 percent consider it a top priority. In fact, consumers in every market we researched reported a substantial increase in the prioritization of wellness over the past two to three years. Currently, the global wellness market is valued at approx. $1.5 trillion, with annual growth of 5 to 10 percent.
Some of the type of healthcare products that will see the most growth are those related to:
Electronic Health Records (EHRs)
EHRs allow patients’ health information to be managed in a digital format and their data can be shared with other providers across multiple organizations—improving physician productivity and patient satisfaction. The global EHR Market size is valued at
The global Electronic Health Records Market size was valued at $20.55 billion in 2016 and is expected to reach $33.41 billion by 2025, per Markets Insider. Big tech firms – such as Apple and Google – and are starting to move into the digital health market.
Wearable Technology in Healthcare
Wearable technology in healthcare includes electronic devices that consumers can wear, like Fitbits and smartwatches, designed to collect the data of users’ personal health and exercise. According to the latest McKinsey & Company research, the number of health and fitness app users will stay above 84 million through 2022.
5G
5G networks’ performance advancements will serve as the backbone of emerging technologies that will reinvent the healthcare world and drive improvements across three key areas: boosting annual cost savings, increasing patient access to quality healthcare, and improving patient experiences. Many healthcare facilities will also need to modernize their IT systems.
Healthcare Facility Types
The high demand for new healthcare products and services, like these, are expected to fuel construction of:
- Acute Care Hospitals
- Ambulatory Surgery Centers
- Cancer Centers
- Cardiac Care/Treatment Centers
- Diagnostic Imaging Centers
- Emergency Centers
- Hospice/Palliative Care Facilities
- Long-Term Care Facilities
- Medical Laboratories
- Medical Office Buildings
- Rehabilitation Facilities
- Respite Care Facilities
- Specialty Medical Practices
- Women’s Centers
For more information on the latest healthcare trends and high growth sectors, visit McKinsey & Company.
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