If you're intrigued by which healthcare market segments are influencing the healthcare landscape, this article is for you.
As pointed out in our article "Healthcare M&A 2024: Recent Deals and Trends”, navigating the healthcare market is not a straightforward task. The landscape of healthcare M&A has diversified into multiple subsegments over the years, each representing different aspects of the industry.
Knowing healthcare market segments aids in conducting sound analyses
It's important to highlight that there are various methods to categorize segments within healthcare. However, by adopting a comprehensive perspective that incorporates life science, the healthcare market segments can be categorized as follows, providing an overview of the market as a whole:
Pharmaceuticals/Biotech
This healthcare market segment focuses on the development, production, and distribution of pharmaceuticals and biotechnological products, including drugs, vaccines, and therapies, often involving research into new treatments and medications.
Life Sciences Tools/Diagnostics (Dx):
The life sciences tools and diagnostics market covers a wide range of products and services for scientific research, drug discovery, and biomedical applications. This healthcare market segment includes instruments, consumables, and reagents for research, genomic and molecular diagnostic testing technologies, laboratory automation solutions, and custom services for the life sciences industry.
Healthcare Services
Healthcare services encompasses a wide range of non-medical services that support the delivery of healthcare, including home healthcare, rehabilitation services, long-term care facilities, hospice care, and wellness programs. These services aim to enhance patient outcomes and improve quality of life.
MedTech
Also known and related with health-tech or digital health , this healthcare market segment involves the integration of technology into healthcare systems to improve efficiency, accessibility, and patient care. This includes electronic health records, telemedicine, wearable devices, and health monitoring apps. The first quarter of 2024 saw digital health rebounding healthcare M&A.
Medical Device
This healthcare market segment encompasses the design, manufacturing, and distribution of medical devices and equipment used in diagnosis, treatment, and monitoring of medical conditions. Examples include surgical instruments, diagnostic equipment, and implantable devices.
Provider
Providers include hospitals, clinics, physician practices, and other healthcare facilities that deliver medical services directly to patients. They play a crucial role in delivering primary, secondary, and tertiary care services.
Payer
Payers are entities that finance healthcare services, including health insurance companies, government-funded programs like Medicare and Medicaid, and self-insured employers. They manage reimbursement for medical services provided by healthcare providers.
Health Consulting
Health consulting firms offer advisory services to healthcare organizations, including strategic planning, operational improvement, regulatory compliance, and market analysis. They assist clients in navigating complex healthcare landscapes and optimizing their performance.
Health Finance
Health finance involves the management of financial resources within the healthcare industry, including budgeting, financial planning, revenue cycle management, and investment strategies. This healthcare segment ensures the financial sustainability of healthcare organizations and the efficient allocation of resources.
Key healthcare market segments 2024 YTD
With a clearer understanding of the segments present in the healthcare market and their respective features, let's delve into which ones are garnering attention this year. As noted in our previous article, according to Dealogic, the top-performing segments in 2024, based on the number of transactions, are:
- Biopharma: 13 transactions
- Services: 10 transactions
- MedTech: 4 transactions
- Life Sciences Tools/Diagnostics: 2 transactions
Are you exploring opportunities in dealmaking within the healthcare sector? Get in touch with Finalis to discover how you can leverage its ecosystem to access healthcare investment banking experts and explore available deals in this space.
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