Sign in Subscribe
Semiconductor industry

New Entrants Flock to Healthcare Market Amid Reforms

Strategic Insights

— 1 min read

The domestic manufacturing industry has witnessed a decline in several sectors, prompting traditional companies to explore new markets for growth, including the healthcare and medical technology sectors. With prospects of healthcare reform and billions of dollars in stimulus funding allocated to healthcare, new competitors are entering the market, including major companies like Google, Intel, and Wal-Mart. Frost & Sullivan, a research firm, has completed a whitepaper on the topic, "Looking at the Healthcare Industry for Growth Opportunities: What New Entrants to the Market Need to Know."

Key Takeaways:

  • Major companies like Google, Intel, and Wal-Mart have targeted healthcare as a critical sector for future expansion.
  • Non-traditional companies, including materials, component, and OEM manufacturers, as well as information technology companies, contract manufacturers, and consumer goods companies, are entering the healthcare market.
  • Frost & Sullivan's whitepaper highlights the attractive features of the healthcare industry, including an aging population, consistent growth, and the ability to reward innovation.
  • The healthcare industry is intensely regulated, litigious, and heavily controlled by insurance reimbursement guidelines, making it a complex market for new entrants.
  • Companies with a fresh, outside perspective will be invaluable to improving healthcare delivery and producing next-generation medical technology.
  • The enormous demand for new technology and solutions to address clinical needs and systemic problems in healthcare delivery will create opportunities for companies with foresight to identify and capitalize on opportunities.

Statistics:

  • Billions of dollars in stimulus funding have been allocated to healthcare, including funding for healthcare information technology, improving healthcare infrastructure, expanding services to underserved communities, and funding new medical research.
  • The aging population and consistent growth in the healthcare industry create a strong foundation for innovation and expansion.
  • The healthcare industry is expected to experience significant expansion of healthcare services, including access to millions of new consumers of medical goods and services.

Sources:

Frost & Sullivan

[1] Frost & Sullivan. (n.d.). Looking at the Healthcare Industry for Growth Opportunities: What New Entrants to the Market Need to Know. Retrieved from [www.frost.com](http://www.frost.com)

Biotech Week editors

[2] Biotech Week. (2009, Copyright). New Entrants Flock to Healthcare Market Amid Reforms. NewsRx.com.

Read more