Longevity - innovation for a healthy tomorrow

Medical progress is not only changing the way we age, it is also increasing our life expectancy. However, the aim is not merely for life to become longer, but ideally also healthier. This trend, known as “longevity”, has been gaining momentum and could also offer attractive opportunities for investors. With an open-end participation certificate on the Solactive Longevity Innovators Index, investors can invest in companies whose products, services, and technologies enable a longer and healthier life. The “silver economy” is one of the fastest-growing economic sectors globally, and accordingly the potential behind longevity is substantial.

Over the past decades, life expectancy worldwide has increased significantly. Particularly in affluent countries, people today are living longer than ever before. Analyses by various statistical authorities show just how much lifetime has been gained. For example, the average life expectancy of a man born in Switzerland in 1900 was 45.7 years, while that of a woman was 48.5 years. Similar figures can also be observed in other industrialized nations such as Germany, France, England, or the United States.

Advances in medicine – such as modern diagnostic methods, effective medications, and improved treatment options – are the main reasons why life expectancy has increased. As a result, many diseases today are either curable or at least well manageable. Vaccinations and improved hygiene standards have also significantly reduced infectious diseases. A balanced diet and access to clean drinking water likewise make a major contribution to better health. In addition, measures such as health education, preventive medical checkups, and prevention programs help to detect diseases at an early stage and prevent them from developing. 

When it comes to longevity, the focus is increasingly on the difference between lifespan and healthspan. The goal is not only to live longer, but also to remain healthy for longer. It is precisely this desire for a longer and healthier life, together with the economic implications of this trend, that is driving innovation in the fields of medicine, technology, and lifestyle.

Companies that offer solutions to meet the medical and healthcare needs of an aging society have significant growth potential. Products and services that help people lead a long and at the same time healthy life are also likely to see a markedly rising level of demand. These two aspects come together in what is known as the “longevity economy”. It encompasses all industries that benefit from an aging population and their specific needs. As a result, new business models are emerging in selected future-oriented sectors along the value chain of prevention, diagnostics, treatment, and everyday support. Those who position themselves strategically at an early stage for the “aging world” can turn demographic risk into a sustainable growth opportunity.

This category includes companies that develop and offer virtual care platforms, data-driven clinical tools, or AI-powered applications. They improve access, efficiency, and decision-making in healthcare delivery. According to the market research firm Markets and Markets, the global market volume for AI in healthcare is expected to increase from USD 14.9 billion to USD 110.6 billion by the year 2030. This corresponds to an exceptionally high compound annual growth rate of 38.6 percent. The associated study states that the increasing prevalence of chronic diseases, combined with an aging population, is putting healthcare providers under pressure to deploy AI applications for the early detection of diseases such as dementia.

This segment includes companies engaged in genome editing, cellular reprogramming, and other next-generation genomic technologies. In genomics, researchers focus on recording and analyzing our genetic material and using these data to detect diseases earlier, tailor therapies to individual patients, and enable new biomedical treatment approaches. The objective is therefore to correct biological dysfunctions and make targeted regenerative treatments possible. The market research firm Markets and Markets assumes that this category also offers enormous growth potential. Analysts estimate that the global genomics market will grow at an average annual rate of 12.6 percent through the year 2030.

This category includes providers of advanced imaging systems and diagnostic technologies that enable early detection, monitoring, and assessment of age-related diseases and other chronic health conditions. According to the market research institute Future Markets Insights, the global medical imaging market had a value of USD 41.6 billion in 2024. By 2030, it is expected to grow to around USD 60 billion, corresponding to an average annual growth rate of just under five percent.

This category is relatively broad. Companies that manufacture implantable, wearable, and surgical devices are considered particularly promising. These devices enable treatment, continuous monitoring, and improvements in patients’ quality of life across all areas of healthcare. Manufacturers are increasingly required to integrate digital services, data analytics, and connectivity. As a result, wearables, remote monitoring, and smart connected devices are becoming key growth drivers because they are closer to patients and enable preventive care.

Due to technological advances, higher healthcare spending, and an aging population, forecasts by KPMG suggest that the market volume for medical devices could grow by around five to six percent per year and thus reach a market volume of over USD 700 billion by 2030.

For investors who see an investment opportunity in the longevity theme, Vontobel has launched a new open-end participation certificate on the Solactive Longevity Innovators Index. The underlying includes up to 25 equities of companies that offer products or services related to promoting longevity and healthy aging. Index constituents are active in one of the five longevity categories presented. Each segment contributes five equities.

Selection is based on a review of publicly available information such as financial news, company profiles, and publications, using ARTIS®, Solactive’s proprietary natural language processing algorithm. Companies are assessed for each category and ranked according to their score. The weighting of index components is based on the ranking score, with the highest-ranked constituent receiving five points and the lowest-ranked constituent receiving one point. Net dividends are included in the index. The composition is reviewed and the weightings are rebalanced semiannually.

Conclusion: The longevity trend could offer a wide range of opportunities for investors. Investments in companies and technologies that address demographic change and improve quality of life offer potential growth opportunities. Such investments also involve risks. Future performance cannot be guaranteed and is subject to market fluctuations and other uncertainties.