Countries are increasingly adopting local production policies, with the policies varying in how they are enforced. Whilst the Indian government continues to push for local manufacturing of medical devices, their main objective is to increase investment into the country. The Indonesian government spent its recent budget for primary care on locally produced products, requiring a minimum of 25% of the system to be locally made. This 25% is only for primary care but will most likely be rolled out to other clinical segments. The percentage is also likely to increase in the coming years.
The Signify View
Whilst market growth in 2023 will continue to be hampered by the current macroeconomic climate, the longer-term outlook is more positive. Several governments are looking to improve healthcare in their countries, with China and India the most prominent examples. There have been several new product releases in the last year from major vendors across all clinical applications and these are expected to drive growth in the short term. Pricing will also be key, especially in adapting prices in each market as inflationary pressures ease at different rates and competition intensifies. This will be crucial in emerging growth markets targeted by Asia Pacific vendors looking to expand into Western markets, combined with recent forex changes, such as the weakening of the Japanese yen against the USD.
About the author: Mustafa Hassan is a senior market analyst at Signify Research. He is part of the Medical Imaging team which covers areas such as ultrasound, general radiography and machine learning in medical imaging. Signify Research provides healthtech market intelligence powered by data. The company blends insights collected from in-depth interviews with technology vendors and healthcare professionals with sales data reported by leading vendors to provide a complete and balanced view of the market trends.Back to HCB News
