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ASEAN Countries Could Be The Next Emerging MedTech Markets
Thanks to a large population, rising middle class, and increasing healthcare
spending, the 10 countries that make up the Association of Southeast Asian
Nations are gaining attention from medical device makers.
For some time now, medical device manufacturers have been looking beyond their
traditional markets in the United States and EU, focusing instead on emerging
economies such as Brazil, Russia, India, and China - collectively known as the
BRIC nations - for growth. But as companies flock to the BRICs and the medtech
markets in these countries mature, forward-thinking device makers are searching
for the next group of emerging medtech markets. Among those that show promise
are the 10 countries that comprise the Association of Southeast Asian Nations
(ASEAN) - Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei,
Myanmar, Cambodia, Laos, and Vietnam
The ASEAN countries have a combined population of more than 620 million, nearly
double that of the United States and more than 100 million higher than that of
the EU. Topping $2.3 trillion, their combined GDP is equal to around one-quarter
that of China, and the region saw GDP growth of about 6% last year, compared
with negative growth in the EU and approximately 2% growth in the United States.
Increasing per capita incomes in the ASEAN countries are also leading to an
expanding middle class. The middle class accounted for about 22% of the total
ASEAN regional population in 2010 and is forecast to increase to more than 62%
by 2030. Growing prosperity means more healthcare spending, which is leading to
growth in the region’s medical device market. Valued at more than $4.5 billion
in 2013, the region’s medical device market is projected to reach $8 billion by
2017, led by Thailand, Indonesia, and Malaysia, which currently account for
approximately two-thirds of the ASEAN device market.
But while the ASEAN medical device market is growing, it is also underpenetrated.
Opportunities abound for foreign companies that can successfully manage the
region’s differing regulatory environments, languages, cultures, and local
competitors.
ASEAN Countries Experiencing More Western-Type Diseases
Western - type diseases have become increasingly prevalent in Asia. Increased
lifespans and growing incomes have led many to adopt Western habits - such as
overeating, consuming fast food, smoking, and engaging in little exercise -
putting Asians at an increasingly higher risk for lifestyle diseases. In
particular, the growth rates of diabetes, orthopedic problems, cardiovascular
disease, and cancer are rising quickly. Western device manufacturers already
make products to diagnose and treat these diseases. Hence, the ASEAN nations are
attractive markets for Western device firms.
Almost 200 million of the world’s 370 million people diagnosed with diabetes
live in Asia. Indonesia is among the top 10 nations with the most diabetics. In
addition, Vietnam, Malaysia, and the Philippines are forecast to have
increasingly high levels of new diabetes diagnoses over the next two decades.
While one in five Malaysians 30 years of age and older have diabetes, less than
half have been diagnosed.
Recent research suggests Southeast Asians are more genetically predisposed to
type II diabetes. In addition, the disease affects younger and less-obese people
in ASEAN countries than in Western countries. Many Western companies already
sell a variety of diabetes diagnostic and treatment products in the United
States and Europe, and an increasing number - including Medtronic, Roche, and
Bayer - are also growing their businesses in ASEAN countries.
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