Healthcare IT spending in Japan will reach 558.7 billion yen in 2015, representing a compound annual growth rate (CAGR) of 1.2% over the 2010-2015 forecast period, according to a new IT spending forecast for the Japan healthcare market published by International Data Corporation (IDC). The report, Japan Healthcare IT Leading Trends in 3Q11 and Public/Private Health Services for Smart City 2011, released March 23, tracks the Japan healthcare market, which encompasses medical care, healthcare and welfare, and pharmaceuticals and life sciences, from 2011 through 2015. According to the report, healthcare spending on hardware, software and IT services was 518.2 billion-yen in 2011, which was down 1.5% from the 525.9 billion yen spent in 2010. The negative growth in 2011 was largely due to a drop-off in PC replacement demand, which had increased in 2010 as a result of revisions to treatment fees and the end of desktop OS life cycles. The overhaul in many healthcare plans in the wake of the Great Eastern Japan Earthquake was another factor contributing to negative growth in 2011. For 2012 and onward, IDC forecasts continued positive growth as Japan moves to reinforce safety and security by bolstering the functions of disaster-centered hospitals and the double revision in treatment and nursing care fees, which will bring system upgrade and replacement demand. In a growing number of cases, local governments in the Great Eastern Japan Earthquake disaster zone are incorporating smart-city concepts as key components in their reconstruction plans. Using information and communications technology (ICT) to enhance local healthcare-related networks is a social infrastructure priority more generally, and the trend is likely to extend to projects outside of the disaster area, the report concludes. The study shows key technologies related to healthcare and smart-city programs include sensors and machine-to-machine (M2M) networks. In the fields of disease prevention and nursing care, research and development is under way to use sensor nodes, mobile phones, smartphones, tablets, and other devices to collect biomedical data, transmit it over networks. The data would then be stored and analyzed to communicate important changes in health status to the consumer, family, and family physician. The study predicts that there are likely to be calls to reduce development costs and accelerate commercialization by creating institutional frameworks to better link healthcare with health and nursing care, review and loosen relevant laws, and provide economic incentives to promote partnerships. The IDC study provides an overview of major IT policy initiatives in the healthcare, wellness, welfare, pharmaceuticals and life sciences, and other segments of the Japan healthcare market in the third quarter of 2011. The report also provides an analysis of trends in the smart city-related IT market, and of selected reconstruction plans formulated by local governments affected by the Great Eastern Japan Earthquake.
(International Data Corporation, 81-3-3356-4789, www.idc.com.)
According to a new ABI study, there are a number of challenges to kick starting the Indian mobile broadband market, but the Indian market is also full of potential. The large landmass and population are two substantial reasons, but India’s low average monthly revenue per user also constrains cash flow to fund infrastructure investments. The Indian market does have great potential -- at the end of 2011, there were 900 million mobile subscribers. However, the market is heavily fragmented, with more than 70 3G licensed circles. Considerable expectations were placed on 4G WiMAX, which failed to materialize. WCDMA and TD-LTE subscriber adoption will eclipse 90 million and 5 million by 2013, respectively. Indian operators currently are executing a number of initiatives including: offloading their capital and operating expenditure-intensive base station towers to tower management companies, forging relationships with companies like Nokia, Samsung, and LG, as well as lower cost handset manufacturers such as Huawei, ZTE, Micromax, and G’Five. They also are repackaging their data plans into more affordable, lower-tier options, introducing not just low-cost tablets, but also 3G data plans, and encouraging local apps developers to create local software apps and content. ABI Research’s new study, Indian Mobile Broadband Market, released March 22, highlights the constraints behind the Indian mobile broadband sector and complications of the current regulatory scene, as well as market drivers for future growth. The report belongs to the company’s 4G Research Service and Asia Intelligence Research Service.
(ABI Research, 516-624-2500, www.abiresearch.com.)
Small-to-medium-sized businesses in the Asia-Pacific region will continue to increase their focus on scalable public cloud applications and will invest close to $1.5 billion in Software-as-a-Service (SaaS) solutions, according to a new research report by AMI-Partners. Because SaaS solutions have emerged as a pivotal tool for these businesses to implement their growth and innovation strategies, AMI forecasts SaaS software and services adoption will more than double by 2015. The increasing demand for scalable pay-as-you-go application provisioning services will lead to an annual market growth of over 30 percent for SaaS solutions across the Asia-Pacific region. This demand will assure that the SaaS market will remain the strongest growing small-to-medium business software segment and will continue to outperform the total software market growth in the region by a factor of three. According to the forecast, in 2012, India and China will account for over 50 percent of total SaaS investment in the region and account for the majority of total market growth. The AMI forecast was released March 20 and additional information regarding the results of the study is available on the company’s website.
(AMI-Partners, 212-944-5100, www.ami-partners.com.)
The Internet economy will grow more than 10 percent a year in the G-20 nations through 2016 and is projected to contribute a total of $4.2 trillion to the G-20’s total GDP in 2016, according to a new research report by the Boston Consulting Group (BCG). In 2010, the Internet economy in the UK accounted for the highest percentage of national GDP, followed by South Korea and China. In each of these three countries, the Internet economy ranked among the top six industry sectors. The 2010 share of U.S. GDP contributed by the Internet was about the same as the share contributed by the federal government, and ranked slightly ahead of the average share of the developed markets. The EU-27 as a whole trailed the average of developed markets and only slightly exceeded the emerging markets average. BCG projects significant shifts, however. By 2016, the Internet economy in the EU-27 and India will leapfrog into fourth and fifth place, respectively. Japan and the U.S. will grow more slowly and drop to sixth and seventh, respectively. “The Internet economy offers one of the world’s few unfettered growth stories,” said David Dean, BCG senior partner and a co-author of the report. “Policymakers often cite GDP growth rates of around 10 percent per year in the developing markets, but they look past similar, or even higher, rates close to home.” The report, The Internet Economy in the G-20: The $4.2 Trillion Growth Opportunity, released March 19, is part of BCG’s Connected World series and includes profiles of Internet usage and economic impact for each of the G-20 economies, which together account for more than 80 percent of the global economy. A copy of the report can be located on the company’s website.
(Boston Consulting Group, 617-850-3783, www.bcg.com.)
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