Espicom Industry View: The Thai market's continued reliance on imported medical devices means demand has remain ed strong, resulting in an attractive 13.7% C AGR growth rate for the forecast period. Local manufacturers , as well as mu ltinationals, in the country remain focused on producing basic supplies mainly geared for export and this trend is not expected to change in the near future. Imports currently account for over 85 % of the market. The current political situation, if prolonged or takes a turn for the worse, could very well impact this projected growth.
Headline Industry Forecasts
The Thai medical device market has been undergoing a period of strong growth, and if fundamentals remain the same, the market looks set to expand at an attractive 13.7% per annum in the medium term, to reach around US$2.2bn by 2018. In 2013, the Thai medical device market is estimated at US$1.2bn, equal to US$17.2 per capita. The current political situation, if prolonged or takes a turn for the worse, could very well impact this projected growth.
Thailand continues to rely on imports to supply most of the market, especially in the provision of more sophisticated equipment such as diagnostic imaging. Imports grew by 4.9% to reach US$1,009.1mn in 2013, compared with the US$962.3mn recorded for 2012. Imports grew every year from 2003 to 2013 period. In CAGR terms, this was a rise of 11.9% in the 2009-2013 period. Based on latest collated monthly data however, imports to year ending May 2014 fell by -4.3% to US$973.7mn.
Medical device exports fell by 6.7% to US$798.4mn in 2013, compared with the US$856.2mn reported in 2012. In CAGR terms however growth was positive, at 9.6%, in the 2008-2013 period. In local currency terms, exports were valued at THB24,530.5mn in 2013, a fall of 7.8% compared with the THB26,598.6mn reported in 2012. The 2008-2013 CAGR in local currency was 7.9%. Based on latest collated monthly data, exports to year ending May 2014 fell by 7.8%...