BMI Industry View: The Czech medical device market is expected to grow by a CAGR of 8.4 % over the 2013-2018 period, a longside increase s in GDP, imports and health expenditure . The Czech Republic is heavily reliant on imported medical devices , although domestically manufactured products are of an increasingly good quality and remain competitive in terms of price.
Headline Industry Forecasts
In 2013, the Czech medical device market was estimated at US$1,402.3mn, or US$131 per capita. This market size was twice that of Ukraine; in per capita terms, the market was similar to Slovenia. The 2008-2013 CAGR was estimated at 1.0% but the market is expected to expand at a CAGR of 8.4% over the 2013-2018 period, reaching US$2,099.2mn, or US$193 per capita by 2018.
Around 81% of the medical device market is supplied by imports. The Czech Republic imported medical devices valued at US$1,134.4mn in 2013; this represented an increase of 5.7% over 2012 and a 2008-2013 CAGR of 1.1%. Imports grew every year between 2004 and 2013, except for 2010 and 2012. In the 12 months to September 2014, imports increased by 5.7% to US$1,168.5mn.
The Czech Republic exported medical devices worth US$1,085.9mn in 2013, representing an increase of 10.9% over 2012 and a 2008-2013 CAGR of 5.1%. The trade deficit decreased notably from -US$94.0 in 2012 to -US$48.5mn in 2013, due to strong export growth. In the 12 months to September 2014, exports increased by 7.2% to US$1,128.6mn.
The Czech Republic has a broad range of medical device manufacturers, although very few are significant in a global context. The increasing presence of foreign manufacturers in the Czech market has forced indigenous manufacturers to improve their quality in order to compete effectively. Domestic medical device production is estimated to be in excess of US$1bn.
Headline Industry Risk/Reward Ratings
OVERVIEW OF THE MEDICAL MARKET IN CZECH REPUBLIC
The Czech Republic is the second richest country in Central & Eastern Europe in per capita terms, with a figure of US$18,458 in 2013. Total GDP is the third highest in the region, at US$195.5bn. The Czech Republic is currently experiencing a recession which is expected to last throughout much of 2013, but GDP is projected to increase by an average 2.4% per annum between 2014 and 2018, reaching US $266.8bn, or US$24,535 per capita.
Healthcare funding is largely public, and mainly through health insurance. Private spending only accounts for an estimated 18% of total health expenditure. Provision of care is also largely public; the Czech Republic has yet to develop a substantial private sector.
The MoH plans to introduce a new set of health reforms in 2014 that aim to bring the Czech health system up to EU standards and cut costs. The measures include increasing the fee that patients must pay to visit a doctor, raising fees for patients who wish to see a specialist without a GP referral and extending the list of treatments not covered by health insurance.
Around 81% of the medical device market is supplied by imports. In the 12 months to April 2013, Czech imports decreased by 6.0%, to US$1,101.5mn. Decreases were seen in all sectors, particularly dental products (14.6%) and patient aids (11.8%).
STRATEGIC MARKET ANALYSIS
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