Healthcare & Life Sciences - Industry - North America Market, Share and Trends 2023-2028

Summary of Healthcare & Life Sciences

The healthcare and life sciences sector in North America has experienced robust growth and innovation in recent years. The United States healthcare market alone is projected to reach over $5 trillion by 2029. Key drivers include— an aging population, rise of chronic diseases, increased health insurance coverage and rapid advancements in medical technologies like artificial intelligence and genomics.

The North American Healthcare and Life Science market size was valued at $ 3888 billion in 2023 and is expected to expand at a CAGR of 6.62 % during the forecast period & reaching $ 5715.44 billion by 2029.

Investment into healthcare startups and companies has skyrocketed, attracting over $44 billion in venture capital funding in 2022. Leading biotech and medical device hubs have emerged in cities like Boston, San Francisco and San Diego. The US also dominates in research, accounting for over 40% of global life sciences R&D expenditure.

While Canada represents a smaller market, our analysis has led us to believe that it has excelled in areas like— machine learning applied to health and medical AI. Toronto and Montreal have developed into major biotech hubs home to hundreds of promising startups.

Key challenges in the region include rising healthcare costs and inefficiencies. However robust public and private sector funding, strong infrastructure and a culture of innovation position North America to continue leading healthcare advancement globally.

Recent Trends and Insights

Telehealth adoption exploded during the COVID-19 pandemic, with virtual health consultations surging 38X in the US alone. Providers like Teladoc and Amwell went mainstream. Investors poured over $3 billion into telemedicine startups in 2022 as remote care models gained traction.

AI adoption to improve diagnostics, predictive analytics and personalized medicine has accelerated substantially. Over 50% of health organizations already implement AI in some form today. The AI health market is forecast to reach $67 billion in North America by 2027. Leaders include Sentrian, Qventus and Notable Labs.

Genomics has revolutionized medicine by enabling more targeted therapies based on an individual’s DNA. The global precision medicine market is projected to grow at 12% CAGR as research in pharmacogenomics and gene editing further clinical applications.

Investment in digital health hit record highs in 2022 that is attracting over $44 billion in funding across startups expanding virtual care, remote monitoring tools and health data analytics. Supportive regulatory changes around digital health solutions will likely spur more innovation.

Blockchain technology is gaining momentum to improve clinical data interoperability, medical supply chains and health insurance claims. Government funding and promising pilots focused areas like cancer data management and opioid tracking point to wider adoption down the line.

Healthcare robotics seen explosive growth with the North American medical robots market estimated to reach $16.6 billion by 2028. Key areas include— surgical robots, assistive robots for the elderly and automated pharmacy dispensaries. Intuitive Surgical, Diligent Robotics and Xenex are leading innovators.

Product Insights

Tamr is an industry leader in using machine learning to aggregate and cleanse vast amounts of patient healthcare data— enabling better analytics and personalization. Its data mastering solutions are used by over 25% of health systems to consolidate their siloed information.

Butterfly iQ has miniaturized ultrasound technology into a single handheld probe powered by AI analysis, enabling easier and cheaper imaging globally. Its pocket-sized ultrasound device replaces bulky cart based machines, expanding diagnostic capabilities.

Akili is pioneering FDA-approved video game-based treatments for conditions like ADHD and cognitive dysfunction. Its platform leverages sensory and motor stimuli to target and improve neural systems. Akili represents the rise of digital therapeutics.

Ginkgo’s cell programming platform enables programming of cells as easily as computers to achieve a desired biological output. Its technology is being used to develop innovative medicines, agriculture products, industrial chemicals and more.

Grail has developed ‘Galleri’— a pioneering blood test capable of detecting 50+ cancers early across all stages. Its advanced sequencing technology looks for methylation patterns and biomarkers signaling cancers. Grail was acquired by Illumina for $8 billion in 2021.

Key Companies

Some major players within this vast domain of industry are

• Thermo Fisher Scientific, Inc.
• Hoffmann-La Roche Ltd.
• Illumina, Inc.
• Agilent Technologies
• Becton, Dickinson and Company (BD)
• Bio-Rad Laboratories, Inc.
• Danaher Corporation
• General Electric Company
• Merck KGaA
• QIAGEN

Regional Analysis

The US drives majority global healthcare innovation today, flaunting the largest biopharma market and dominating medical R&D expenditure. The US biotech sector alone has over 15,000 companies.

With over $44 billion invested into digital health startups in 2022— the US continues accelerating development of transformative solutions like AI diagnostics and telehealth platforms. The FDA also runs various pilot programs to support new technologies.

Key US healthcare hubs renowned globally include Boston, San Francisco, San Diego and the Research Triangle in North Carolina. The US also leads advances in genomics, gene therapies and precision medicine with American companies like Vertex Pharmaceutical pioneering new treatment paradigms.

Canada has nurtured competitive advantages in cutting-edge areas like AI and genomics. Toronto and Montreal have become renowned biotech hubs based on pioneering research institutes and talent development programs.

Over 60% of Top AI research papers come from Canadian universities like— MILA driving rapid translation into startups. Notable alumni built pioneering AI diagnostic companies like BlueDot which provided early warnings for COVID-19 outbreaks globally.

The Toronto-Waterloo corridor also houses a dense concentration of AI health companies, with ample government funding propelling innovation. Canada has also invested heavily into genomics research over decades, with Western University discovering key breast cancer genes.

Market Segmentation

By Type:

• Pharmaceuticals
• Medical Devices
• Healthcare IT
• Diagnostics
• Biotechnology

By End User:

• Hospitals and Clinics
• Research Laboratories
• Diagnostic Centers
• Others

By Enterprise Size:

• Large Enterprises
• SMEs

By Country:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of the regional North American healthcare and life sciences market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.