The Outlook for Medical Devices in Latin America

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Nov 28, 2012, 11:52 ET

NEW YORK, Nov. 28, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

The Outlook for Medical Devices in Latin America

http://www.reportlinker.com/p0192647/The-Outlook-for-Medical-Devices-in-Latin-America.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Medical_Devices

The eight Latin American medical markets are expected to grow by a CAGR of 4.6% between 2008 and 2013, reaching US$9.2 billion. Each country report provides a comprehensive analysis of the medical market, including five-year market forecasts. For each country you will receive 4 completely updated reports sent quarterly, plus a comprehensive report sent annually.

A growing but challenging regional market, worth US$7.4 billion!

The eight Latin American medical markets covered by Espicom Business Intelligence represent a market of 474 million people with a GDP of US$3.4 trillion in 2008. The region is better prepared to face global instability than in the past but economic growth is expected to slow down in 2009 and 2010, after a recent period of remarkable growth. The region is now seeing all markets re-evaluate their health provision. Levels of service in the buoyant private health sector are among the best to be found, but the challenge is provide better levels of basic healthcare to the mass of the population. Opportunities for manufacturers of medical equipment and supplies do exist, but it is knowing where and how to develop them. Brazil is the largest medical market, followed by Mexico, Argentina and Colombia. Cuba, however, has the highest level of medical spending per capita in the region, but this is mostly for the purposes of 'health tourism', not the benefit of the local population.

With the exception of Brazil and Mexico, the medical regulatory environment in the region is less stable that in developed markets. These young markets have not matured yet, therefore their regulatory systems are being consolidated. Brazil and Mexico, however, have more complex and mature regulatory systems. MERCOSUR members tend to follow the medical regulation established by Brazil, and there is some degree of regulatory harmonisation among them. Andean members such as Colombia are also modelling Brazil's medical regulation. Mexico operates closer to its North American allies, and follows the US' FDA regulation.

Trade in medical devices and equipment is key to the region's development with all markets dependent on imports, with the exception of Brazil, which has a strong local domestic industry. Brazil, Argentina and Chile import more high specification medical technology products, whilst Peru, Mexico and Venezuela import more consumables. Regional medical exports are low, with the exception of Mexico, which represents nearly 90% of the region's export capabilities. Continuing strong export growth in the country is almost entirely due to US manufacturers' 'maquiladora' activities. Almost all of Mexico's medical exports are shipped across the border to the USA. Brazil's exports are low compared to the size of its medical market, but exports of dental devices and implantables have been on the rise in recent years. The deficit in the balance of trade is negligible for the region, due to the weight of Mexico's exports.

These quarterly updated reports analyse the issues

The Outlook for Medical Device Markets in Latin America is published by Espicom Business Intelligence. Each report provides an individual and highly-detailed analysis of each market, looking at the key regulatory, political, economic and corporate developments in the wider context of market structure, service and access. The reports are available individually or as a discounted collection, and prices include 4 completely updated reports sent quarterly plus a comprehensive annual review.

These quarterly updated reports analyse the issues

The countries of Central and Eastern Europe represented a total market of 302 million people and a combined GDP of US$3.3 trillion in 2012.

Central & Eastern Europe is composed of a diverse range of markets, all at different stages of development. Markets throughout the region grew very rapidly until 2008, as many

countries joined the EU between 2004 and 2007. All have healthcare systems in great need of renovation and updating, and spending on new diagnostic equipment in particular has been very strong. Most new equipment is imported, as Russia, Poland, the Czech Republic, Ukraine and Hungary represent the five largest markets in the region. Slovenia is a small market, but has the highest per capita expenditure, on a par with much of Western Europe.

The Economic Situation

All countries in the CEE region were affected by the global economic crisis to some extent; Ukraine was particularly hard hit with its economy contracting by 14.8% in 2009. However, most of the region emerged from recession in 2010 and all CEE countries were exhibiting positive growth rates by 2011. The regional economy is expected to grow by an annual average of 3.1% between 2012 and 2016, although the ongoing eurozone crisis may negatively impact this rate. The CEE region contains export-dependent countries such as the Czech Republic and Hungary, which will be vulnerable to any depressed demand in the eurozone. However, financial assistance provided by the IMF has helped countries such as Romania to strengthen their economies and limit the effects of the recession on the health sector; overall demand for medical devices has therefore remained strong, particularly in the consumables field.

Regional Health Expenditure

Total health expenditure for the CEE region is projected to reach an estimated US$329.0 billion by 2016, equal to 6.7% of GDP. At present, only 29% of spending in the region is

private, but over 85% of this is composed of out-of-pocket payments. The area of private healthcare plans remains largely undeveloped within most markets. Slovenia, the wealthiest country per capita in the region, is the only state in which private plans have become a strong feature, representing almost half of total private spending.

Focus on market opportunities: Diagnostic Imaging

The table below shows the rise in demand for imported diagnostic imaging equipment since the end of the economic crisis, following a period of slow-moderate growth. Between 2006 and 2010, the CAGR for such equipment did not exceed 20% in the countries listed below; however, import performance was much more encouraging in the year ending October 2011, particularly in Romania and Poland where growth rates reached 47.8% and 34.0%, respectively. Only modest growth was observed in the Czech Republic and Slovakia, however. It will take time for countries such as Ukraine to return to pre-crisis growth rates; renewed investment in high-tech equipment will ensue as

their economies strengthen.

Diagnostic Imaging Imports for Selected CEE Countries, 2006-2011 (% Change)

Country

Bulgaria

Czech Republic

Poland

Romania

Slovakia

Slovenia

*Year ending October 2011. CAGR 2006 - 2010

-5.5

5.0

8.2

6.6

19.1

14.1 Annual Growth, 2011*

-0.9

2.8

34.0

47.8

4.9

21.3

Highlights from the region

ARGENTINA

Argentina is the fourth largest country in Latin America, with a large elderly population as potential healthcare consumers. The country has recovered since its 2002 economic crisis, with imports performing well in the last few years. Argentina has a medium-tech manufacturing sector able to supply many domestic healthcare needs. The Argentine peso, valued at 4.1 in 2011, has fallen against the US$, affecting the market in US$ terms.

BRAZIL

In 2011, the Brazilian medical market is valued at US$4,034 million, the largest market in Latin America. Healthcare expenditure is highest in urban areas. Brazil has a well-established medical industry, comprising local and multinational companies. Since 2003, imports have grown well, increasing at a CAGR of 21% between 2005 and 2009. The private healthcare industry has seen rapid growth.

CHILE

Chile is one of the region's better economic performers, with the highest GDP per capita in Latin America. Chile has an FTA with the USA which is its dominant supplier for medical devices. It produces very little medical equipment, so is largely supplied by imports. The Chilean market for medical equipment and supplies is valued at US$495.4 million in 2011.

COLOMBIA

Colombia is the third largest country in Latin America. The country's healthcare structure is adequate in the larger urban areas, but in need of modernisation and the healthcare system is complex. Colombia's GDP growth was less than 1% in 2009, because of local budget tightening and inflation, but was expected to have recovered to grow 4.5% in 2011. Espicom estimates the size of the Colombian market for medical equipment and supplies to US$863.9 million in 2011. Per capita spending on medical devices is average for the region.

MEXICO

The Mexican market for medical devices is estimated at US$3.5 billion in 2011. This is the second largest in Latin America, behind Brazil. Per capita expenditure is the highest in the area. Per capita expenditure is relatively low, however. The market is dominated by imported products, principally from the USA. US manufacturers benefit from proximity and preferential terms under NAFTA. Medical exports are very high with the majority being shipped to the USA, under "maquiladora" activity.

PERU

The Peruvian market for medical equipment and supplies is estimated at US$317.9 million in 2011. Per capita expenditure is the lowest of the featured markets. However, Peru has a projected market CAGR of 12% between 2011 and 2016. Health services are mostly provided in the public sector, although facilities are severely under-funded. Around 8.1 million people were insured by the main public insurer ESSALUD by 2009. The private sector, based in Lima, is advanced but small. Peru has very little domestic manufacturing.

VENEZUELA

The Venezuelan market for medical equipment & supplies was estimated at US$595.3 million in 2011. Venezuela has the second highest medical market per capita expenditure in Latin America. The country is economically under-developed although rich in natural resources. The market is volatile and the economy is heavily dependent on oil and imported products. Many health facilities rely on outdated equipment and infrastructure and are under-funded. There is little domestic production and none at all of high-end apparatus.

To order this report:

Medical_Devices Industry: The Outlook for Medical Devices in Latin America

Contact Nicolas: [email protected]
US: (805)-652-2626
Intl: +1 805-652-2626

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