What is Femtech and where does the future hold?
According to LEK Consulting’s Executive Insights
McKinsey & Company written by Emma Kemble
FreshCode
Pham Phuong Linh introduced and edited
The term “Femtech” (female technology) was first coined by entrepreneur Ida Tin in 2016. This article will analyze in detail the Femtech market, comprehensively explore the main segments, innovation drivers, current situation of businesses operating in the industry, market size and growth rate, as well as the opportunities and challenges that shape this dynamic industry.
Women's Health – The backbone of Femtech
The focus of this sector is to provide a range of solutions to improve women's healthcare for several specific conditions, including maternal health, menstrual health, pelvic and sexual health, fertility, and menopause.
Femtech market
Healthcare services that fall within the Femtech market definition can be divided into three main groups based on solution type:
- Clinical services and care connections:
Clinical services and connections within Femtech include telehealth and telemedicine services, virtual clinics, and clinic models designed around women's specific needs. Welkin Health is a prime example, providing solutions that serve as the backbone technology for hospitals and healthcare organizations, allowing them to increase patient engagement and support many aspects of women's healthcare.
- Support and participation in care:
This group addresses the use of technology to empower women to proactively take control of their health and interact with healthcare providers. These companies offer solutions in the form of digital healthcare applications and communities, allowing women to track and monitor their health outcomes.
- Clinical and consumer products:
This category includes both physical and digital products, such as wearable tracking devices, virtual clinic and remote healthcare services, digital health devices with accompanying apps.
Femtech Market Landscape: According to a report by [source name], the global FemTech market size reached USD 40.2 billion in 2020 and is expected to grow at an average CAGR of 13.3% from 2020 to 2025 to reach USD 75.1 billion. Despite growing interest in recent years, the industry remains undervalued but has high growth potential. Currently, North America is the leader in this emerging movement with nearly 55% of the world's Femtech companies originating here. Asia alone contributes only 8% to the number of Femtech companies globally.
Femtech in Southeast Asia: Zooming into a specific region, Southeast Asia shows promise for Femtech growth. In 2021, there were 41 femtech companies in the region, compared to 318 globally in 2020. Singapore served as the leader with 24 femtech companies, followed by Thailand (6 companies). This is perhaps unsurprising considering Singapore's position as the center of the ASEAN region and a leading technology hub.
Sub-sectors and Innovation: By sub-sector, the Pregnancy & Nursing groups are the largest within Femtech (21%), followed by Reproductive Health & Contraception (17%), Menstrual Health (14%) and General Healthcare (14%). In some cases, FemTech companies are filling gaps that incumbent biopharmaceutical and device companies have not addressed, such as in the areas of reproductive health and maternal care.
A unique aspect of the Femtech market is its rapid growth and diversity, encompassing early-stage startups, mid-market companies, and publicly traded companies. Notably, the presence of female CEOs and Founders contributes to a more open and gender-balanced market. FemTech's solutions have not only achieved commercial success; they are fostering a climate of continued innovation. Because women are not only consumers but also primary health care decision makers for themselves and often for their families, improved health outcomes for women can lead to better health outcomes for society as a whole.
