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The Outlook for Medical Devices in North East Asia
Date:12/1/2011

a total 14.7% of the world market.

Diverse markets, diverse opportunities

These four countries are currently undergoing different phases of development, both in overall terms and more pertinently, in the growth of the

respective medical device markets.

Japan, South Korea and Taiwan represent highly developed medical device markets with advanced healthcare systems & high levels of spending, both in the private and public sector. This has inevitably placed a strain on the respective governments, who have in recent years tried to temper escalating spending by introducing various cost containment strategies, including periodical price cuts/reimbursements for medical devices and equipment.

However, spending has continued to rise, key factors being the ageing demographic and the high standards of healthcare the population has grown to expect.

Japan and South Korea in particular have strong domestic manufacturing capabilities, especially for modern high-tech medical devices, but these countries continue still to rely heavily on imports to meet its demand.

China's big challenge

China's healthcare provision is somewhat lacking when compared to the other three countries, but it remains one of the fastest growing countries in the world, expanding at a rate of 9.1% in 2008. This growth rate, along with the other countries, will be impacted by the global economic downturn, but compared to some other industries, the healthcare sector will not be as adversely affected as it based on strong fundamentals. The medical device sector growth continues to be backed by actual, and not artificial, demand which is not likelyto change significantly. The Chinese government, in January 2009 for example, have publicly pledged to spend 850 billion yuan (US$123 billion) by 2011 to provide a universal primary medical service for the country's 1.3 billion people.

China

* China has the world's largest population. In 2008,
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SOURCE Reportlinker
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