21 July 2022

Asian healthcare services: Time to look beyond COVID-19

Andrew Huntley, Anthony Siu, Sanjay Singh

As an increasing number of countries in Asia achieve an 80% vaccination rate, they are gradually removing COVID-19 social and border restrictions. BDA Partners is revisiting the fundamentals and attractiveness of the Asian healthcare services sector.

Healthcare services is the largest part of the healthcare industry in Asia. Its market size is expected to reach US$1.4tr by 2026[1], driven by a growing population, rising affluence, and a mounting disease burden.

Key takeaways:

  • Demand for healthcare services in Asia will continue to rise — the segment is growing at a faster pace than the overall healthcare industry, although healthcare infrastructure has been under-invested historically
  • Even as governments across Asia increase their budget allocation to healthcare, the private sector continues to play an important role, providing capital and improving the efficiency of the healthcare system
  • Financial sponsors have been, and will continue to be, active buyers of quality hospitals and healthcare services assets. Sponsors have been involved in 25% of healthcare services transactions from 2017-2021
  • The global dry powder of private equity funds reached a new record of US$1.8tr in February 2022, following a record year of fundraising
  • Asian M&A activity in the next two to three years will be strong, driven by consolidation and bolt-on acquisitions by strategics in their core markets, and investments by financial sponsors into both platform and growth companies

In this piece, we examine post-COVID sector trends and M&A activities in SE Asia, Greater China, and India.

Sources: Mergermarket
Note: (2) Other healthcare subsectors include Medical Devices, Medical Equipment & Services, Biotechnology Research, Drug Development, Drug Manufacturing, Drug Supply, Handicap Aids and Basic Healthcare Supplies, etc.

Download the full report

Contact BDA health team

Andrew Huntley, Managing Partner, Global Head of Healthcare, London / Ho Chi Minh City: ahuntley@bdapartners.com

Anthony Siu, Partner, Co-Head of Shanghai: asiu@bdapartners.com

Sanjay Singh, Managing Director, Head of India, Co-Head of Asia Healthcare: ssingh@bdapartners.com

Claire Zhen, Director, Shanghai: czhen@bdapartners.com

Aditya Jaju, Vice President, Mumbai: ajaju@bdapartners.com

Yan Xia, Vice President, Singapore: xyan@bdapartners.com

Zhang Simeng, Vice President, Shanghai: szhang@bdapartners.com

[1] Fitch and Statista

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