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Advancing Healthcare

In the coming years, an aging population will further strain already overburdened healthcare systems. But disruptive technologies show promise in alleviating these demands, while also helping people live better for longer. Digital health technologies are accelerating drug discovery; genomic medicines are furthering advances in care; and AI-powered research is poised to supercharge cutting-edge treatments.
Global X ETFs forecast with information derived from FDA (2024, August), Artificial Intelligence and Machine Learning (AI/ML)-Enabled Medical Devices.

Aging
Population

Silver Opportunities

The Global Population Is Aging at an Accelerated Pace

By 2052, one in six people in the world will be 65 or older. In the United States, all baby boomers will have reached retirement age.

United Nations (2024), World Population Prospects 2024; United States Census Bureau (2019, December 10), By 2030, All Baby Boomers Will Be Age 65 or Older.

Older Adults Dominate Healthcare Spending 

In the United States, the 65-and-older cohort currently accounts for 16% of the population but 37% of all healthcare spending. Both figures are expected to rise in coming years.

Centers for Medicare & Medicaid Services (CMS) (2024, September 10), National Health Expenditures by Age and Sex; United Nations. (2024, July). World Population Prospects 2024.

Chronic Conditions Add Complexity to Elder Care

Healthcare demand among the elderly correlates with the higher incidence of chronic illness. An estimated 79% of individuals 60 and older deal with two or more chronic illnesses, requiring coordinated care across multiple settings and providers.

National Council on Aging (2024, May 30), The Top 10 Most Common Chronic Conditions in Older Adults.

A Growing Overlap in Chronic Conditions

The rise in obesity has led to a surge in associated health problems. New treatments targeting obesity show promise not only for weight reduction, but also for addressing the multiple chronic conditions increasingly common in older adults.

Evaluate Pharma (2024, August 5), Obesity: The Next Questions. 

Wider Use for GLP-1 Treatments

Glucagon-like peptide-1 (GLP-1) agonists have revolutionized the treatment of obesity and diabetes. Use cases for these treatments continue to expand. GLP-1s can help manage numerous chronic conditions commonly found in an aging population—such as heart failure, kidney disease, and the liver condition nonalcoholic steatohepatitis (NASH).

Evaluate Pharma (n.d.), GLP-1 Sales by Indication. Accessed November 1, 2024.
GLP-1 treatments like Ozempic have become household names for their success in treating type 2 diabetes and obesity. The drug category’s reach across age-related disorders, however, could revolutionize elder care.”
Arelis Agosto
Director of Research & Strategy,
Global X ETFs

Tech-Enabled Health

Revolutionizing the Standard of Care

Tech-Enabled Health Is Expanding

Historically, healthcare has been slow to adopt new technologies, but surging demand means the sector must now embrace innovation. A growing set of technologies will play a pivotal role in improving patient care.

Evaluate Pharma (n.d.), Cardiovascular Monitoring & Diagnostic Devices WW Consensus Sales Forecasts. Accessed November 1, 2024; Evaluate Pharma (n.d.), Diabetic Care WW Consensus Sales Forecasts. Accessed November 1, 2024; Evaluate Pharma (n.d.), Non-Invasive Monitoring Devices WW Consensus Sales Forecasts. Accessed November 1, 2024; Grand View Research (2023), Clinical Trial Management Services Market Size; Grand View Research (2023), Insurtech Market Size; Grand View Research (2024), Telemedicine Market Size; Insight Partners (2023), Medical Scheduling Software Market Size; Markets and Markets (2022, May), Pharmacy Automation Market; Markets and Markets (2024, August), Surgical Robots Market; Precedence Research (2024), September), Electronic Health Records Market Size; Precedence Research (2024, September), U.S. Revenue Cycle Management Market Size; Statista (2024, September), Online Pharmacy – Worldwide.

AI-Enabled Medical Devices Like Wearable Sensors Are on the Rise

Regulatory acceptance of AI-enabled medical devices has paved the way for expanded use of wearable sensors that can integrate effortlessly into patients’ lives and enable around-the-clock health monitoring.

Evaluate Pharma (n.d.), Cardiovascular Monitoring & Diagnostic Devices WW Consensus Sales Forecasts. Accessed November 1, 2024; Evaluate Pharma (n.d.b), Diabetic Care WW Consensus Sales Forecasts. Accessed November 1, 2024; Evaluate Pharma (n.d.c), Non-Invasive Monitoring Devices WW Consensus Sales Forecasts. Accessed November 1, 2024.

Adoption of Surgical Robots Is Growing

Sparked by the approval of Intuitive Surgical’s da Vinci Surgical System in 2000, robot-assisted surgeries have taken off, transforming areas of medicine that include urological, gynecological, and general procedures.

Bloomberg L.P. (n.d.), ISRG: Intuitive Surgical Inc. Data as of November 1, 2024; Intuitive Surgical (2017, February 6), 2016 Annual Report; Intuitive Surgical (2018, February 2), 2017 Annual Report; Intuitive Surgical (2019, February 4), 2018 Annual Report; Intuitive Surgical (2020, February 7), 2019 Annual Report; Intuitive Surgical (2021, February 10), 2020 Annual Report; Intuitive Surgical (2022, February 3), 2021 Annual Report; Intuitive Surgical (2023, February 10), 2022 Annual Report; Intuitive Surgical (2024, January 31), 2023 Annual Report.

AI Drug Discovery Is Expected to Be the Fastest-Growing Gen AI Segment 

Generative AI has the potential to accelerate drug discovery, leading to cost efficiencies and more affordable medicines. Spending on drug-discovery gen AI software tools, which can reduce the time to take a drug to market, is projected to reach $41 billion by 2032.

Bloomberg Intelligence (2024, August 14), Generative-AI Revenue Potential.

Insilico Medicine Aims to Expedite Drug Development

On average, it takes 10 to 15 years to develop a new drug, and it costs $1.3 billion. So, Insilico Medicine is leveraging generative AI to synthesize a wide variety of scientific information, with the goal of making drug development faster and less expensive.
Journal of the American Medical Association (2020, March 3), Estimated Research and Development Investment Needed to Bring a New Medicine to Market, 2009–2018; PhRMA (2021, September 20), Industry Profile 2021.




Limitations in healthcare supply, coupled with rapidly growing demand, will strain an already challenged healthcare system. The medical community is expected to rely on technological advancements that hope to create a more responsive and effective healthcare system, ultimately benefiting patients and communities across the board.”
Arelis Agosto
Director of Research & Strategy,
Global X ETFs

Genomics

A New Age of Medicine

Investigational Technologies Are Combating Illnesses

The pharmaceutical industry now has a host of new technologies to treat common diseases.

Evaluate Pharma (n.d.), Evaluate Omnium: Risk & Return Overview. Accessed November 1, 2024.

Regulatory Approval Is Ramping Up

Growing regulatory acceptance is expected to pave the way forward for widespread adoption of genomic medicines. There are now nearly 30 approved genomic medicines, including the first gene editing therapy, approved in 2023.

Food & Drug Administration (n.d.), Approved Cellular and Gene Therapy Products. Accessed November 1, 2024; Evaluate Pharma (n.d.), Cell Therapy: Technology Overview. Accessed November 1, 2024; Evaluate Pharma (n.d.), Gene Therapy: Technology Overview. Accessed November 1, 2024; Evaluate Pharma (n.d.), Gene-Modified Cell Therapy: Technology Overview. Accessed November 1, 2024; Evaluate Pharma (n.d.), Genome Editing: Technology Overview. Accessed November 1, 2024.

The Next Frontier for Genomic Medicines

With growing regulatory acceptance, the genomic medicine industry is now focused on expanding its reach to more common illnesses. Currently, revenues from genomic medicines derive from 15 illnesses, seven of which comprise 78% of revenues. By 2030, genomic medicines for 80 illnesses are expected to generate revenues.

Evaluate Pharma (n.d.), Genomic Medicine Revenues by Indication. Accessed November 1, 2024; Evaluate Pharma (n.d.), Cell Therapy: Technology Overview. Accessed November 1, 2024; Evaluate Pharma (n.d.), Gene Therapy: Technology Overview. Accessed November 1, 2024; Evaluate Pharma (n.d.), Gene-Modified Cell Therapy: Technology Overview. Accessed November 1, 2024; Evaluate Pharma (n.d.), Genome Editing: Technology Overview. Accessed November 1, 2024.
Genetic medicines are gaining momentum, with increasing regulatory support paving the way for broader applications. In the coming years, these treatments are poised to target a wider set of illnesses, potentially improving health outcomes for patients worldwide.”
Arelis Agosto
Director of Research & Strategy,
Global X ETFs