Medical Industry
Healthy growth expected for medical devices Asia Pacific region accounts for half of the world’s population. In recent times, there has been an increasing need for better access to modern medical technology in tandem with the growing demand for healthcare due to demographic shifts in income, population, disease burdens, and general awareness of health issues.
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he global medical devices market is poised to reach US$398 billion next year and is expected to rack up further through 2023, UK-based business information provider Visiongain forecasts in its Medical Devices Industry and Market Prospects 2013-2023 report. The growth will be driven by the introduction of innovative devices onto the market and also by the demand generated by illnesses associated with the ageing global population, it says. This is echoed by Espicom, a Londonheadquartered research firm, that analysed in its Worldwide Medical Market Forecasts to 2018. It says that by 2018, the global medical device, technology and equipment market is forecast to be worth over US$440.5 billion. Medical devices growth in Asia Meanwhile, in the Asia Pacific region, medical and healthcare are given priorities in the respective national agendas. Moreover, there has been an outpouring of private investments in the medical and healthcare sectors, particularly in the privatisation of public hospitals and acquisition of private hospitals. Supported by topical findings from the US consultancy McKinsey & Company’s MedTech in Asia: Committing at scale to raise standards of care for patients report, the region’s market is expected to reach US$133 billion a year in 2020, from US$88 billion a year in 2015 at 8% CAGR. By the then, Asia Pacific would have outpaced the European Union as the world’s second largest medical technology market, after the US.
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The prevalent demand for medical technology in Asia Pacific is in proportion to the region’s growing silver population which will top 857 million come 2050. In Deloitte’s 2016 Global Life Sciences Outlook: Regional & Country Perspectives report, it finds that the roll-out of public health care programmes in the 3.7-billion population region, combined with increasing private wealth, is expected to boost healthcare spending by an annual average of 6.6% from 2015 to 2019.
"..the prevalent demand for medical technology in Asia Pacific is in proportion to the region’s growing silver population of 857 million come 2050..." It says that India will demonstrate the strongest growth at more than 16% per year, given that the Indian government has focused on raising public health expenditure from 1.2% to 2.5% of the country’s GDP within five years. China’s spending growth is approximated at 8.8% annually within the report period. India to set up medical park India has a growing healthcare expenditure estimated at nearly US$69 billion in 2015, according to data from India Brand Equity Foundation (IBEF). The industry itself is large and continues to expand. By 2017, IBEF says that the industry size is expected to reach US$160 billion and by 2020, some US$280 billion. Then again, India, the world’s generic drugs capital, is seeking the means to minimise healthcare costs. Thus, a medical devices park, which has recently gotten funding approval from state officials, will soon be established at Visakhapatnam, Andhra Pradesh. Projected to be Asia's first medical devices park, the Andhra Med Tech Zone (AMTZ) will house high investment scientific facilities to help medical device makers reduce manufacturing costs by as much as 50%. It will also be equipped with state-of-the-art