The emerging economies of Brazil, Russia, India, and China (BRIC) have become lucrative, high-growth markets for medical devices. The device market in developed territories such as the US, Europe and Japan has reached saturation and the outcome of economic recession has restricted the growth in these countries over the past two years. The emerging economies are not only growing due to increased adoption of medical devices owing to increased health awareness, but these nations are also lucrative investment regions for multinational medical device companies to offshore business operations and production. The growing middle-class in the BRIC nations has reached more than one billion in population and this trend implies a surge in value-added lifestyle. The combined GDP of BRIC was about 31% of the global economy in 2009 owing to their increased share of these nations in global outsourcing and offshoring. The report provides detailed analysis of the healthcare environment in various emerging nations: each emerging nation’s medical device market size; continuously evolving healthcare regulations; growth opportunities unique to each country with respect to the medical device market; business-related trends and opportunities unique to each emerging country.
This report provides detailed analysis of the healthcare environment in various emerging nations: each emerging nation’s medical device market size; continuously evolving healthcare regulations; growth opportunities unique to each country with respect to the medical device market; business-related trends and opportunities unique to each emerging country. rbmd0004
Scope of this research
* Learn from the business strategies followed by prominent medical devices companies that operate successfully in emerging nations.
* Understand government initiatives and exploit opportunities that would optimize device production costs.
* Analyze the growth opportunities that expanded medical device markets in emerging nations.
* Compare the different healthcare environment in respect to regulations, reimbursements, medical insurance, and product distribution network
Research and analysis highlights
Global demand for medical devices is being driven by increasing expenditures on healthcare in the developing markets, construction of hospitals and clinics, and establishment of public/private health insurance. Medical device companies recognize that they must look increasingly at developing countries to drive growth.
The largest markets for medical devices in the world are the US, Europe, Japan, Canada, China, Brazil, Taiwan, South Korea, and Australia. Europe will continue to be the largest regional export market for the US medical device companies due to high per capita income in European countries and a favorable regulatory environment.
China is increasingly a target market for international companies to offshore high-technology medical devices in light of China’s large population and strong economic growth. China is the second largest market for US medical device exports in Asia (after Japan), with exports of about $1.8bn in 2009.
Key reasons to purchase this research
* What was the market size for medical devices in emerging markets in 2009?
* How are multinational companies addressing the challenges encountered in marketing medical devices?
* How are health insurance and reimbursement policies evolving in emerging markets?
* What are the key trends observed in emerging markets?
* What are the growth opportunities for medical devices in emerging countries?
About Business Insights 2
Disclaimer 2
Executive summary 9
Emerging markets overview 9
China 9
India 10
Brazil 11
Russia 11
Chapter 1 Introduction 13
What is this report about? 13
Methodology 13
Chapter 2 Emerging markets overview 15
Summary 15
Introduction 15
Classification of emerging markets 16
Impact of middle-class growth in BRIC 17
BRIC versus global competition 18
BRIC as an export destination 22
Export barriers for international device companies 25
High growth device segments in emerging countries 27
Effect of FCPA on the global medical device market 29
Chapter 3 China 31
Summary 31
Introduction 31
Regulation 33
SFDA device classification 35
SFDA device review procedure 36
Review of China’s GCP policy 37
Import device testing policy 37
Adverse event reporting 38
Time frame for new product approval 38
Regulatory challenges facing manufacturers 38
Challenges 39
Extended tendering process 39
Price control for medical equipment 40
High-end technology restrictions 40
Intellectual property (IP) issues and Renminbi appreciation deter foreign entrants 41
High patient-contribution costs are a barrier to affordable healthcare 41
Other medical device market challenges 41
Market drivers 42
Greater healthcare demands due to ageing population 42
New healthcare stimulus plan triggers low-end markets effectively 42
Healthcare environment in China 43
Role of primary healthcare providers 43
Purchasing process 43
Direct purchasing 43
Bidding 44
Medical equipment purchase protocol 44
Reimbursements 45
Original equipment outsourcing to China 46
Overview of healthcare reform 46
Growth opportunities 47
Growth analysis of the Chinese medical device market 47
High-end medical equipment adoption 48
Foreign financing for medical equipment purchase 50
Impact and uncertainties of Chinese healthcare reform 50
Economic growth 51
Increased share of healthcare expenditure with regard to GDP 51
Healthcare insurance 52
Healthcare privatization 52
Market entry road map 52
Distribution channels 53
Marketing laws in China 54
Underdeveloped issues in Chinese healthcare 55
Prominent companies in the Chinese medical equipment market 56
Growth outlook 57
Chapter 4 India 60
Summary 60
Introduction 60
Regulation 62
Medical device regulation lobbying in India 63
Recently updated regulations 64
Challenges 66
Tariff increases on certain high-end products 66
Differences in public and private healthcare services 67
High usage rates of medical equipment 68
Market drivers 69
Rising middle-class and ageing population 69
Macroeconomic impact 70
Medical tourism 70
Health insurance 70
Healthcare environment in India 70
Health insurance in India 71
Medical equipment utility and pricing 71
Growth opportunities 72
Growth analysis of the Indian medical device market 72
High growth medical device segment 73
Chapter 5 Brazil 75
Summary 75
Introduction 75
Regulation 78
Challenges and drivers 79
Healthcare Environment 79
Home-health services 79
Growth opportunities 80
Growth analyses of the Brazilian medical device market 80
Macroeconomic factors influencing growth 80
International relations 81
Market direction – 2010 and beyond 81
Brazil’s cancer treatment initiatives 83
Chapter 6 Russia 85
Summary 85
Introduction 85
Regulation 87
Product validation and certification 88
Challenges and drivers 90
Healthcare environment 90
Growth opportunities 90
Growth analysis of the Russian medical device market 90
Chapter 7 Other emerging medical device markets 93
Mexico 93
Turkey 94
Chile 96
Argentina 97
Vietnam 99
Appendix 101
Glossary 101
Table of figures
Figure 1: Medical devices – global market size, 2009 19
Figure 2: Medical imaging – global market size, 2009 20
Figure 3: Total medical device market size (imaging included), 2009 21
Figure 4: China medical device market size and growth forecast, 2009–2015 33
Figure 5: India medical device market size and growth forecast, 2009–2015 62
Figure 6: Brazil medical device market size and growth forecast, 2009–2015 77
Figure 7: Russia medical device market size and growth forecast, 2009–2015 86
Figure 8: Mexico medical device market size and growth forecast, 2009-2015 93
Figure 9: Turkey medical device market size and growth forecast, 2009–2015 95
Figure 10: Chile medical device market size and growth forecast, 2009–2015 96
Figure 11: Argentina medical device market size and growth forecast, 2009–2015 98
Figure 12: Vietnam medical device market size and growth forecast, 2009–2015 99
Table of tables
Table 1: Medical device market size – emerging countries, 2009 17
Table 2: Medical devices – global market size, 2009 19
Table 3: Medical imaging – global market size, 2009 20
Table 4: Total medical device market size (imaging included), 2009 21
Table 5: China medical device market size and growth forecast, 2009–2015 32
Table 6: India medical device market size and growth forecast, 2009–2015 61
Table 7: Brazil medical device market size and growth forecast, 2009–2015 76
Table 8: Russia medical device market size and growth forecast, 2009–2015 86
Table 9: Mexico medical device market size and growth forecast, 2009–2015 93
Table 10: Turkey medical device market size and growth forecast, 2009–2015 94
Table 11: Chile medical device market size and growth forecast, 2009–2015 96
Table 12: Argentina medical device market size and growth forecast, 2009–2015 97
Table 13: Vietnam medical device market size and growth forecast, 2009–2015 99
Other selected research from the 'Markets' category:
The Role of the Private Sector in the European Market
Disposable Syringe Markets
Other selected research from the 'Regulation & Policy' category:
Stakeholder Opinions: Diabetic Renal Disease
eHealth Regulations in Europe: Understanding the Changing European Legislative Landscape