Why this is important to Wisconsin: Wisconsin companies with digital health care products and services may want to explore their options.
Digital health technologies and devices are poised to surge in Japan in the coming years as the aging population grows and the government presses for innovation.
Digital health is “one of the frontiers of health care innovation in Japan,” according to the Japan External Trade Organization (JETRO). Companies are rushing to develop software and products to treat and manage diseases, according to an April 2023 JETRO article.
A major reason is the rapidly rising population of older residents. About a decade ago, Japan became the world’s first “super-aged society,” defined by the World Health Organization as having one of every four citizens who are at least 65 years old. Currently, 29% of Japan’s population of 125 million is 65 or older, and projections show that by 2040, 35% will be senior citizens—including more than 300,000 who have reached or passed age 100.
Health care costs in Japan already are high—¥44 trillion ($31 billion USD) in fiscal 2021—and they are expected to multiply as the incidence and cost of treating chronic diseases rise with the aging population. As a result, since 2014, the government has launched several initiatives to promote the use of electronic health records, telemedicine, and other digital tools to help people manage their health and health systems to track their patients’ efforts.
“Digital health is being hailed as one of the medical system’s most drastic makeovers since the introduction of universal health care in 1961,” the JETRO article said. Worldwide, annual revenues in the digital therapeutics market are expected to more than triple, from $3.4 billion in 2021 to $13.1 billion by 2026.
For example, Japanese startup CureApp won government approval for its nicotine addiction treatment app in 2020, and for a follow-up app to treat high blood pressure in 2022. Welldoc, a U.S. company, has been collaborating with Astellas Pharma, Japan’s largest pharmaceutical company, on an app for diabetes patients to use. And U.S.-based Akili is teaming with Japan’s Shionogi to commercialize mobile games for children with attention deficit hyperactivity disorder.
Japan’s heightened interest in the sector could provide expanded opportunities for Wisconsin companies in the digital health arena to pursue partnerships in the market.
