OVERVIEW OF THE MEDICAL MARKET IN IRAN
Espicom Industry View: The Iranian medical device market ranks fourth in the Middle East region, valued at US$766.5mn . Per capita e xpenditure, however, is the second lowest one in the region , at US$10 . The market has growth potential but o ngoing sanctions with both the USA and EU have affected the market's appeal. The weakening of the domestic currency, the rial, has also affected market growth.
Headline Industry Forecasts
- In 2013, Iran's medical device market is estimated to be worth US$766.5mn; however, the market size per capita is very low, at US$10. The market is projected to grow by a low CAGR of 1.3% in US dollar terms, taking the market to US$819.4mn by 2018. Per capita spending is not expected to rise strongly over the same period.
- Imports account for around 90% of the market, despite the manufacture of basic consumables such as syringes, needles & catheters, dental instruments & fittings and orthopaedics. Imports were valued at US$719.4mn in 2012. A large proportion of imports (67.6%) were procured from suppliers from the European Union (EU-27), with the Netherlands and Germany being the leading suppliers. Diagnostic imaging apparatus and other medical devices were the most significant import sectors.
- Iran's medical device exports are minimal; estimates for 2012 put the value of exports at just US$5.6mn. The value of exports has plummeted when compared to 2011, but this decline is not just due to a devaluation of the Iranian rial, as the value of exports also fell by 76.2% in local currency terms.
Headline Healthcare Overview
In 2013, BMI Espicom estimates that healthcare expenditure in Iran stands at US$23.2bn, representing 5.0% of GDP. Healthcare expenditure has risen at a CAGR of 0.9% in US dollar terms between 2008 and 2013; this low increase is partly due to the devaluation of the local currency.