A new report released by management consulting firm Boston Consulting Group (BCG) has highlighted that medical technology is expected to break out of the emerging markets and onto the global stage.
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The report references a rising demand for healthcare, rising household incomes, increased government spending and ageing populations as being accountable for medtech’s market expectations.
Emerging markets account for less than a quarter of the medical technology industry’s global revenue. By 2022 however this is expected to have grown to one third.
China is the second-largest market in this sector and is projected to grow 13% from 2015-2022. China’s medical technology market has experienced double-digit growth for over a decade and reached $45 billion last year.
India’s medtech market – currently sitting at fifth in the world – is set to rival Japan and Germany if it continues its 17% annual growth, the report states.
The report highlights how medtech companies in emerging markets can grow rapidly, referencing how the revenues of emerging markets within top 100 global pharmaceutical companies have grown from $4.5 billion to $119 billion since 2005.
Advantages for companies in emerging markets include lower costs, localised products, unique marketing approaches and government.
The report references a number of successful medtech companies including provider of medical devices and solutions, Mindray in China, medical device companies Wego Group and BioSensors International.
These companies have adopted business techniques such as broad customer research, less expensive products and localised operations to benefit their market position.
The report goes on to say that multinationals should respond by adapting their portfolios, reducing costs and localising their go-to market approach.