Market Research Report
Project Insight: Global Healthcare Construction Projects
|Published by||GlobalData||Product code||530069|
|Published||Content info||67 Pages
Delivery time: 1-2 business days
|Project Insight: Global Healthcare Construction Projects|
|Published: September 28, 2018||Content info: 67 Pages||
With rising economic prosperity in emerging markets and aging populations in many advance economies, demand for healthcare services continues to grow. Rapid population and economic growth in Asia-Pacific, in particular, is creating the need and financial means to provide an efficient health service for the region. There remains huge potential for further investment in healthcare buildings in Asia-Pacific, given the relatively low levels of spending on healthcare currently in some of the largest countries in the region, such as China (healthcare spending as a proportion of GDP at just 5.5%) and India (4%).
The Middle East and Africa region is implementing construction programs for health buildings. Mandatory health insurance is also being introduced in some Middle Eastern countries, which will increase private investment in healthcare facilities in the region. Saudi Arabia leads the region for value of projects, with its current project pipeline having a total value of US$16.6 billion. Europe's mature healthcare market is being driven by the aging population of 'baby boomers', which will require more primary healthcare and nursing facilities over the next three decades. Funding will come from the governments of major countries, and increasingly from private insurance schemes.
The pipeline is relatively mature, in that projects currently in execution amount to US$235.5 billion, accounting for 52% of the total, while projects in the pre-execution stages account for 16%. Projects currently in the planning stage amount to US$138.3 billion (30.5% of total), with early stage projects, those at the pre-planning stage (announced and study), totaling US$5.6 billion (just over 1% of the total). Assuming all projects proceed as planned, annual spending on the projects currently in the pipeline will reach around US$87.2 billion in 2019, up from US$70.8 billion in 2018.
GlobalData's Construction Intelligence Center is currently tracking global healthcare construction projects with a total value of US$453 billion (including all projects from announced to execution stage). The North America region accounts for the highest share, with a combined project pipeline valued at US$153.1 billion, ahead of Asia-Pacific with US$116.3 billion. Western Europe's pipeline is valued at US$98.7 billion, followed by the Middle East and Africa (US$51.6 billion), Eastern Europe (US$23.9 billion) and Latin America (US$19.6 billion).