IVF sector: Fertile ground for growth and consolidation

The global fertility services market is expected to grow at a robust CAGR of 7% over the next decade, driven by an aging global population, rising infertility rates, and couples delaying childbirth. Market demand tailwinds are even more pronounced in Asia and the fertility market ecosystem is relatively nascent compared to the West. Asia Pacific market is expected to grow at a CAGR of 10% over the next 10-years, significantly outpacing global growth. Scaled regional players have started to emerge and are looking to consolidate the highly fragmented market, taking advantage of scale economies, leveraging regulatory differences across markets, sharing of best practices, clinic expertise and technology to drive better patient outcomes / success rates.

The fertility services market has attracted significant interest from both strategic and financial investors seeking to build regional platforms:

• The business model has attractive characteristics such as high barriers to entry (due to license requirements, brand reputation, access to talent, clinical expertise / ability to achieve high success rates), robust EBITDA margins and low capital intensity relative to hospitals
• SE Asia has been a particular focus for global investors due to the high fragmentation of providers and large under-served populations with growing local demand for fertility services
• India has also attracted strong interest as the IVF sector is expected to grow at a CAGR of 16% over the next 10 years, and scaled players have emerged with the backing of financial sponsors

In the next five years, we expect significant M&A activity in the fertility services sector across Asia, with a particular acceleration in SEA and India as several large players establish their dominant positions in the region.

Please reach out to BDA Partners for a discussion regarding specific IVF M&A / investment opportunities.

Download the full report for more insights regarding the IVF sector landscape in Asia.