IDC Forecasts $100 Billion Healthcare Savings in Asia/Pacific with GenAI by 2025

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• Michael De La Cruz  Email: mdelacruz@idc.com
• Miguel Carreon  Email: mcarreon@idc.com
• Manoj Vallikkat  Email: mvallikkat@idc.com
• Louise Francis  Email: lfrancis@idc.com

IDC Reveals Healthcare Industry Predictions for Asia/Pacific*

SINGAPORE, 23 January 2024 – IDC predicts that by 2025, Generative AI (GenAI) will free up to 10% of clinicians' time, translating into an estimated US$100 billion in annual healthcare saving in Asia/Pacific excluding Japan (APEJ) to realize more workflow automation and efficiency. This is just one of IDC’s predictions unveiled in its latest report, IDC FutureScape: Worldwide Healthcare Industry 2024 Predictions – Asia/Pacific (Excluding Japan) Implications.

As the industry looks to master AI everywhere, GenAI is emerging as a transformative force in healthcare and is set to impact workforce efficiency and hyper-personalization in the care processes. CIOs of the healthcare sector are exploring the use cases and the adoption model within their establishments, realizing the immense potential GenAI has in the future of healthcare. Below are the other AI-driven predictions for the healthcare sector in the region:

• GenAI PX: By the end of 2027, driven by the demand to scale hyper-personalized patient experiences, improve collaboration, and foster equity, 60% of Asia/Pacific healthcare organizations will double GenAI investments. 
• AI Diagnostics: Driven by the need for improved diagnostic accuracy, speed, and workflow efficiency, care providers in Asia/Pacific will see a 60% increase in AI solution adoption by 2026. 
• AI Care Anywhere: By 2027, 50% of the healthcare industry in Asia/Pacific will leverage GenAI to address data and workflow fragmentation across care settings to improve diagnosis and patient safety to scale care anywhere. 

In addition to the overarching theme of AI, the IDC predictions cover several other themes including industry clouds, Hospital@Home (H@H), “payvider” financing, integrated platforms, and the future of hospitals. Special attention has been given towards optimizing technology investments, with a particular emphasis on enhancing operational efficiency and elevating patient outcomes.

• Industry Clouds: Driven by the perceived value of purpose-built functionalities for healthcare, 40% of healthcare organizations in Asia/Pacific will adopt industry clouds by 2025. 
• Payvider Financing: By 2026, 45% of Asia/Pacific private health insurance companies and 75% of U.S. health systems will be "payviders" to improve risk management and address the rising cost of care.
• H@H: By 2026, a doubling of hospital-at-home patients will propel a 55% growth in investments in tech-enabled integrated care initiatives to address patient safety, workforce, and care access concerns in Asia/Pacific.  
• Techquity: By 2028, 60% of the healthcare industry in Asia/Pacific will prioritize tech partnerships that champion “techquity,” reducing the digital divide and recognizing social determinants of health as vital influencers. 
• Integrated Platforms: Personalized health data platforms will support 50% of covered patients in advanced economies by 2028 while building more accurate patient journey simulations for providers and life science companies in Asia/Pacific. 
• Future of Hospitals: By 2029, hospital investments in sustainability and modernization will increase by 50%, driven by the need to reduce costs, improve quality of care, and enhance organizational resiliency in Asia/Pacific.

“Equitable healthcare has always been a big headache for the healthcare sector, but the evolution of technology, such as AI, will provide viable means to reduce the gaps in digital healthcare,” says Louise Francis, Head of Public Sector Research, IDC Asia/Pacific. “The emergence of the concept of ‘techquity’ highlights how technology will provide the bridge to enabling equitable access to healthcare services over the next five years”, said Francis.

IDC’s healthcare industry predictions for APEJ provides guidance to healthcare leaders in prioritizing the key themes and use cases, enabling them for more defined engagement with tech providers.

“The Asia/Pacific healthcare sector is at a seminal moment, defined by a patient-centric care model combined with an ‘AI Everywhere’ approach. With the advent of GenAI and the need for consumerization of care, the next five years are set to be the defining period for the healthcare sector, and we are currently at the starting point of this exciting journey,” says Manoj Vallikkat, Senior Research Manager, Healthcare Insights, IDC Asia/Pacific.

“Healthcare providers in the region tend to prioritize investments on data management, AI, and automation, targeting decentralized care and patient outcome, supported by enhanced clinician efficiency. In the healthcare sector, the unique risks associated with AI are significant, which necessitates a greater focus on explainability and data security,” added Manoj.

Each year, IDC releases its top technology predictions at worldwide, regional and country levels through its IDC FutureScape Reports    and gives a crystal ball view of what is ahead for the rapidly changing IT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. All the predictions stated here cover Asia/Pacific implications.

Catch an on-demand replay of IDC's 2024 Predictions presentation that will be available as part of a series of FutureScape webinars addressing the IT Industry, AI and Automation, Digital Business, CIO Agenda, and Emerging Technologies. If you would like to attend any of these webinars, register   and learn more HERE.

Asia/Pacific Japan FutureScape Reports come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage on IDC insights to better understand clients’ priorities and enhance your storytelling and go to market plans, access the IDC FutureScape: Worldwide Developer and DevOps 2024 Predictions — Asia/Pacific (Excluding Japan) Implications: Positioning for Success — Opportunities for Tech Sales and Marketing Leaders market presentation HERE.

For more information about IDC FutureScape and other resources, please visit our regional FutureScape site. For sales inquiries on the IDC FutureScape framework and reports, please contact your IDC account manager or Tessa Rago at trago@idc.com. For media queries, please contact Michael de la Cruz at mdelacruz@idc.com     or Miguel Carreon mcarreon@idc.com.

*Asia/Pacific Excluding Japan

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About IDC FutureScape

IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC's FutureScape reports are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within a typical five-year business planning cycle.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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