AGE-tech
Age-Tech is the next frontier market for technology disruption in the quest to make longevity accessible to everyone. Age-Tech spending is poised to grow fast. Older people are the fastest growing demographic group (with around 2.5% annual populations growth vs. 0.7% for all population); digitization is growing across all sectors (to around 16% by 2025); and digitization in aging is converging towards the global average. I project the global Aging Economy will reach $27 Trillion in 2025, with digitization at 10%, for an Age-Tech potential of $2.7 Trillion by 2025. This would imply 21% annual growth in the global Age-Tech market. In any case, the point is that Age-Tech is big and growing very fast. Age-Tech is emerging as the preferred way to describe the intersection of Longevity and Technology. The US the Aging Economy was sized at $7.6 Trillion a year by AARP and Oxford Economics (this is roughly 40% of US GDP). The European Aging Economy was sized at $4 Trillion, by Oxford Economics on behalf of the European Union, roughly 20% of European GDP. Regardless of what ratio, there is growing awareness of the sheer magnitude of the “gray dollar” and the fact that with today’s demographic trends it will be growing faster than the overall economy.
We can think of 4 categories of digital-enablement in Age-Tech: services purchased by older people; services purchased on behalf of older people; services traded between older and younger people; and services delivered to future older people. The top 5 digital US companies (Microsoft, Amazon, Apple, Alphabet and Facebook) have a combined US Age-Tech revenue of $70 B or about 50% of the US number.