Medical manufacturing holds value in Asia Pacific

Moving into developing markets in Asia Pacific should drive increased activity and value for the manufacturers of medical devices across the region.

This is according to the latest report from independent technology research firm TechNavio. Released on January 7, the Medical Technologies Market in the APAC Region 2015-2019 report revealed that previously untapped markets are the key to unlocking future growth.

One particular trend that is likely to encourage significant climbs in value in Asia Pacific is user-friendly technology development, which enables professionals to put healthcare in the hands of the consumer, rather than requiring trips to the hospital or their doctor. Due to increased interest in this area, and the drive to move manufacturing and export into emerging consumer locations, TechNavio predicted a compound annual growth rate of almost 10 per cent over the next five years.

"[Medical technology] vendors are shifting their focus toward developing economies, as most of the countries have large populations compared with developed countries," explained TechNavio Vice President Faisal Ghaus.

"Factors such as lenient regulatory guidelines, low manufacturing costs, skilled labour, and limited market competition are some of the incentives offered by developing countries; thereby increasing manufacturers' profits."

Further research from McKinsey & Company identified several areas where growth in the medical device industry may be challenging for certain manufacturers. In particular, as governments implement measures to cut healthcare costs, public hospitals are being given smaller budgets and may be unable to purchase new equipment at the current rate.

This, and other trends, may affect how much of the forecasted growth manufacturers can enjoy over the next few years. However, the McKinsey report outlined a number of considerations that may help companies reach their full order potential despite economic challenges. Most important is the development of a sound business plan that can weather the changes in the market while still preparing for significant future growth.

To do this, manufacturers need to remain flexible and competitive in the increasingly challenging market. Decision makers must stay aware of costs and demands, balancing the two to achieve maximum productivity.

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