China: Domestic vendors benefitting from government policies With the country in lockdown for most of 2022, and only fully reopening in Q4 2022, alongside currency fluctuations, market growth was hindered (in dollar terms) in 2022.
Domestic Chinese vendors performed strongest in 2022, boosted by the local manufacturing policy implemented in 2021. The impact on international vendors varied, depending on how successful they have been in obtaining local production certification. This policy was strengthened in early 2023, with the local content requirement increasing from 63% to 85%.
The expansion of healthcare into rural areas is expected to drive growth during the forecast period. However, the slowing Chinese economy will impact long term growth prospects for the ultrasound market.
Japan: Market decline to continue into 2023 After strong growth in 2021, driven by the large supplemental budget designed to finance the government’s economic stimulus package, the market was estimated to have declined in 2022. The biggest declines in 2022 were estimated to be in the radiology, cardiology and point-of-care markets. A further decline is forecast for 2023 due to the continued effect of the reduced supplemental budget, as well as rising prices and staff wages.
Price increases varied in Japan in 2022, with some vendors keeping prices the same and others raising prices by around 10%. Whilst some vendors may want to increase prices again in 2023, further price rises will be hard to justify as other vendors haven’t increased prices at all.
There is a government funded National healthcare transformation due to start in 2024, which will include purchasing of ultrasound systems. Subregional government and hospitals are currently deciding where the funding should be spent.
Southeast Asia: Growth forecast for all markets All other markets in Asia were estimated to have grown in 2022. The Indian market is estimated to have had another year of strong growth driven by demand in the primary care, radiology and women’s health markets and the continued trend of patients seeking healthcare locally, resulting in more clinics opening.
There was strong growth again in the Oceania market, which also saw strong growth in 2020 and 2021, driven by new ultrasound users in the handheld and point-of-care segments. Elsewhere, strong growth in Indonesia was driven by additional funding for primary care, and strong growth in Malaysia was driven by its recovery from the corruption scandal in 2021.
