The Brazilian medical device market is expected to reach USD13.1 billion by 2020, reinforcing its position as the top medical device market in the region.
IHS Global Insight perspective | |
Significance | The Brazilian medical device market has been forecasted to hit USD13.1 billion by 2020, reinforcing its position as the top medical device market in Latin America, and one of the top medical device markets in the world. In 2012, the Brazilian medical device market was worth approximately USD7.9 billion. |
Implications | The reasons behind the strong growth of the medical devices market in Brazil are linked to socio-demographic factors such as an increase in the elderly population as well as an increase in healthcare coverage, which has raised the need for up-to-date medical devices, diagnostics, and tests. |
Outlook | The landscape of the Brazilian medical devices market is expected to grow steadily in the medium-to-long term, bolstering its place as one of the strongest markets worldwide. |
The Brazilian medical device market is expected to reach a value of USD13.1 billion by 2020, reinforcing its position as the top medical device market in Latin America, and one of the strongest medical device markets in the world, according to a report by Today's Medical Developments. In 2012, the Brazilian market was worth approximately USD7.9 billion, according to the source.
Furthermore, the growth of the Brazilian market goes hand in hand with the healthy growth of the country's pharmaceutical sector, which was estimated to be worth USD24.1 billion in 2012 and is expected to reach approximately USD55.7 billion by 2020 at a compound annual growth rate (CAGR) of 11.1%.
For 2013, Brazilian medical devices association Abimo estimates a 6% growth in the turnover of companies, with 62% of revenues generated by small and medium-sized companies engaged in manufacturing ultrasonic devices, surgical pumps, video laparoscopy devices, catheters, peacemakers, and orthopedic devices (see Brazil 15 August 2013: Brazilian medical device sector grows).
Outlook and implications
The reasons behind the strong growth of the medical devices market in Brazil are linked to socio-demographic factors such as an increase in the elderly population as well as an increase in healthcare coverage, which has raised the need for healthcare providers to have up-to-date medical devices, diagnostic equipment, and tests. Furthermore, with a national and a regional disease profile leading to an increase in cancer incidence in the country, medical devices and diagnostic tests are playing a vital role in the early detection and treatment of cancer as well as other chronic diseases. In 2012, the Brazilian population was estimated at 198.4 million (source: Today's Medical Developments). Conversely, one of the biggest advantages of the Brazilian demographic is the large increase of the working age population between 2007 and 2012, as well as a distinct increase in the volume and purchasing power of those belonging to the middle class, the so-called class C.
The increase in the use and success of the medical devices market in the country, and specifically of the domestic medical devices industry, is also strongly linked to a government policy aimed at fostering the use of medical devices domestically.
The Brazilian medical device sector is considered the top medical device market in the Latin American region, and among the top 10 medical device markets in the world. The production of medical devices in the country is evenly spread between domestic suppliers for public and private hospitals and clinics operating in the country and exports abroad. The sector is expected to see an upward growth trend over the medium term.
Recently, Brazil's health regulator Anvisa announced its intention to carry forward the prospect of a standardised single audit programme for medical devices, which is currently being developed by the International Medical Devices Regulators Forum in order to bring Brazil's good manufacturing practices (GMPs) in line with international standards, according to International Medical Device Regulatory Monitor. With this new regulation, Anvisa is aiming to create a regulation that will help local medical device manufacturers achieve the appropriate certification in manufacturing practice, good distribution practice, and storage. The new regulation is linked to Brazil's efforts in becoming an international hub for medical device manufacturing, and the added streamlined GMPs and harmonised standards will enable the country to compete on a global scale.