In this comprehensive report, we review how Artificial Intelligence, Blockchain, Cloud Computing, and Data Analytics (ABCD) are revolutionising healthcare globally, discuss future ABCD development directions, and identify key players who could benefit from the trends. Leveraging CS’ global reach, we chose to present ABCD development in the US, China and India, which we believe is a representative sample set given these countries are at different stages of economic development and have distinct healthcare systems.

Deep-dive into benefits of ABCD technologies in the US, China and India markets.

ABCD technologies are transforming the way healthcare is imparted. The market is growing rapidly and is expected to reach US$180bn in 2028 (CY20-28: 28% CAGR). The use of ABCD has resulted in increased shift of medical care into patients’ homes, improved medical services and supply chain efficiencies, enabled better utilisation of healthcare plans, and tapped a large wellness segment (in addition to illness). In particular, we outline five key themes: (a) improving access to care, (b) care management, (c) reducing fraud, waste and abuse, (d) optimising supply chain, and (e) driving employee/consumer engagement.

New asset-light business models have emerged and traditional models are adapting to new changes. Most of the ABCD technologies are being introduced by integrated platforms that offer multiple services such as e-pharmacy, tele-consultation, ediagnostics, and chronic disease management, among others. The asset-light model of such platforms has led to rapid expansion, creating a sizable user base. Traditional healthcare systems are also embracing ABCD and have started to offer a hybrid of offline and online services.

Top picks: Teladoc, Accolade, JD Health, and Apollo Hospitals. In the US, we like Teladoc and Accolade due to their positioning in their respective markets, combined with their ability to leverage data to enhance future product offerings and continue to innovate their existing platforms. In China, we like JD Health given it has a leading online drug business plus fast-growing online medical consultation services. Additionally, it employs AI and big data analytics to deepen its penetration in online healthcare business. In India, Apollo Hospitals is our top digital health pick and we raise its target price to Rs5,700 (from Rs4,800). Apollo Hospitals has the largest hospital and pharmacy network in India and is now leveraging its strong offline network to offer bundled services online.