The
total market value of Thailand’s medical equipment and device industry in 2019
exceeded THB90 billion. Medical equipment and devices are divided into: 1.
Disposable medical supplies such as medical gloves, syringes and catheters; 2.
Durable medical supplies such as hospital beds and wheelchairs; and 3. Reagents
and diagnostic kits such as nephropathy reagent, diabetes reagent and
blood-type reagent. The industry has tended to grow continuously, especially after
the outbreak of coronavirus (COVID-19) which has driven the demand for medical
equipment and devices in Thailand, reflected by a 64%YoY increase in the importation
of reagents and diagnostic kits during the first half of 2020. Additionally, the
government policy to promote medical hubs, coupled with public awareness of
preventive health care and the expectation that Thailand will become a fully
aged society in the next two years (the number of elderly people that are
vulnerable to diseases, especially chronic non-communicable diseases such as
diabetes, heart disease and stroke, will grow to more than 14 million), will
also boost the demand for medical equipment and devices.
However, it is
worth noting that although Thailand’s medical equipment and device industry may
see substantial growth due to the aforesaid factors, imported medical equipment
and devices account for more than 80% of the total market value of Thailand’s
medical equipment and device industry. Most of them are X-ray machines,
electrocardiographs, ultrasound machines, electroencephalographs and ophthalmic
products, while the remaining 20% are produced by domestic producers. The
products manufactured in Thailand mainly are medical gloves, eyeglass lenses,
catheters, syringes, injection needles, and wound dressing devices. One of the
main obstacles that cause Thai products to account for a limited market share
is that Thailand is still unable to produce high-technology medical equipment
and devices, almost 100% of which rely on importation. In addition, medical
equipment and devices produced in Thailand mainly are low-value disposable
medical supplies, while some durable medical supplies such as hospital beds and
wheelchairs are facing fierce competition from China in terms of price and from
Japan in terms of quality. As a result, medical equipment produced by Thai
producers is not recognized much in the market and accounts for a small market
share. KResearch expects that the medical equipment and device industry in Thailand
still has room to grow substantially in the future along with the growth of the
healthcare service industry, especially within hospital businesses and nursing
home businesses, and with the rising demand for basic medical devices in
consumers’ daily life, such as blood pressure monitors, blood glucose monitors
and thermometers. However, the increased business opportunities seem to be in
the hands of foreign producers.
KResearch
believes that if Thailand intends to reduce the proportion of imports and substitute
them with domestically produced medical equipment and devices, all related
parties must cooperate and support the entire supply chain. This includes
maintaining and improving the quality and standards of production materials and
production processes to meet customer needs, as well as marketing activities
carried out through various online and offline channels, starting
with a range of equipments that use intermediate or uncomplicated technology such
as hospital beds, wheelchairs, various disposable medical supplies (medical
gloves, medical masks, reagents and diagnostic kits), because the demand for
these products is expected to increase. However, it is undeniable that high-technology
or complex medical equipment and devices still rely on imports, because
domestic producers still lack production capabilities. KResearch views that if
Thailand can eliminate various obstacles in the entire supply chain, the total
value of the domestic medical equipment and device market will expand by an
average of 7.8% per year (compound annual growth rate (CAGR) in 2019-2022), reaching
a value of over THB120,000 million in 2022, while the proportion of imports
will be reduced to 77% of the total market value and the proportion of domestic
production will increase to 23%. If Thailand can maintain its quality and
standard of production consistently and can continue to support research and
development in order to expand or enhance Thailand’s medical equipment
production, whether by public and private sectors or by new generation
start-ups who introduce more technology into their production, there will be
more room for growth in Thailand’s exportation of medical equipment and devices
in the future.
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