Espicom Industry View: The Iranian medical device market ranks fifth in the Middle East and Africa (MEA) , valued at US$832.5mn. Per capita expend iture, however, is the sixth low est in the MEA, at US$11. The market looks set to expand at a solid 9.1% CAGR to 2018, but this growth could be affected if relations with the world's leading economies fall through over the country's nuclear enrichment policies.
Headline Industry Forecasts
In 2013, Iran's medical device market was estimated to be worth US$832.5mn. However, per capita expenditure is very low, at US$11. The market is projected to grow by a relatively moderate CAGR of 9.1% in US dollar terms, taking the market to US$1,284.3mn 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$741.7mn in 2013, a rise of 0.4% in US dollar terms over the previous year. A large proportion of imports (67.1%) were procured from suppliers from the European Union (EU-27). Based on the latest collated monthly data, imports to year ending in March 2014 had near flat growth, reaching US$744.9mn.
Iran is not a major exporter of medical devices. In US dollar terms, exports fell by 21.1% over the previous year to US$7.6mn in 2013. Exports had a negative 3.9% CAGR from 2008-2013. Based on the latest collated monthly data, exports to the year ending in March 2014 rose by 9.4% to US$6.6mn.
Headline Industry Risk Rewards Ratings
Iran is the fifth least attractive market in the MEA region in which to commercialise a medical device, according to BMI Espicom's Medical Device Risk/Rewards Ratings (RRRs). The country's overall score for Q414 is 42.8 out of 100, unchanged from Q314. This compares to a regional average of 49.6 for the 14 key markets covered, down slightly from 50.3 from...