The rising demand and increasing costs for healthcare have spurred the countries in APAC to invest in local medical device manufacturing.
FREMONT, CA – The medical tech market in the APAC is steadily expanding, fueling innovation among domestic companies. The local venture firms and private equities are starting to notice the growth and partnering with medical tech companies to help them achieve their full potential. Asia is home to 60 percent of the world population, which by itself should hint at the tremendous market potential. However, healthcare expenditure constitutes only 15 percent of the global share.
Several developing countries in APAC are experiencing high population growth, whereas others are witnessing the acceleration of ageing population. The region is seeing a steady rise in chronic conditions such as diabetes, cancer, obesity, and cardiovascular diseases. Many auto-immune conditions, infection diseases, and neurological disorders are also on the rise. This, combined with the ageing, is contributing to the increase in expenditure toward medical devices in the region.
The medical tech market in APAC is expected to reach $133 billion, experiencing enormous growth. It can be attributed to the rise in product technology innovation, robust business models, and unique healthcare ecosystem. The global medical device manufacturing is also steadily moving to APAC, to reduce production costs as well as to take advantage of the rising market.
The tightening FDA regulations are also spurring many medical tech companies to migrate to the APAC region. To compete with the global manufacturers of medical devices, the domestic organizations have to foster enhanced agility, innovation, and versatility to stay abreast the evolving market trends.
However, along with promoting medical device manufacturing, governments should also enforce effective compliance regulations. When it comes to medical device development, safety and reliability are critical since they often play a direct role in patients’ healthcare. Compromising quality and accuracy is out of the question, and it essential for the local regulatory bodies to ensure the same.
Medical device manufacturers can establish zero-defect reliability by employing failure mode and effect analysis (FMEA) tools. It will not only enable them to assess the risks associated with the devices but also explore the most effective strategies to overcome the quality and safety challenges.
With the rising market growth and domestic competition, western medical device companies are also increasing their marketing and sales operations in APAC, offering basic and advanced medical devices at significantly lower rates. The barriers that once hindered the growth of the medical and surgical equipment market in Asia are coming down.
For many years, international firms and investors have struggled to move past the complex regulatory procedures, convoluted tendering for device purchase, work culture, service and quality expectations, and so on. However, the governments of developing countries in Asia are relaxing the regulations surrounding the healthcare industry, allowing international medical device manufacturing companies to take root in the local markets.
The growth in medical device manufacturing can also be attributed to advances in technology. The miniaturization of integrated circuit boards have not only facilitated space optimization in operating theatres and intensive care units, but also enabled the design of compact self-monitoring devices, including blood pressure monitor, blood glucose meter, and so on. Power technology has also improved over the last few years, leading to the development of robust and reliable therapy devices. The breakthrough technologies have made the devices more marketable and competitive, offering enhanced performance and innovative features.
Greater collaboration and partnership among the key stakeholders in medical device manufacturing, including the government, regulators, clinicians, payers, patient advocacy associations, and academia, will potentially lead to the enhancement of standards of care for patients in the APAC. As organizations launch robust initiatives addressing the needs of diverse healthcare markets, it can ensure better access, innovation, and collaboration.