Zpryme: Intelligent Research for an Intelligent Market

Austin, TX (ZPRYME NEWS) – 05/15/08 - India, Singapore and China’s increasing emergence as exceptionally low-cost medical devices manufacturing arena is a source of much concern for Western economies medical devices companies that run the risk of losing important market share.

Further, while this growing trend almost certainly presents a strong threat to Western companies ie. United States and Europe, industry experts view it as a hopeful opportunity to expand into India, Singapore and China, however they will have to move fast to capitalize on early growth opportunities.

Many Western companies have started setting up their own production facilities in India, Singapore or China and are benefiting from reduction in operational costs. Although the cost of distributing products back into the Western market are elevated, shifting the manufacturing locality is nevertheless a intelligent move for Western medical devices companies as they will be well-placed to increase dissemination of the particularly underserved Asian Pacific and Indian market.

Outsourcing Trend

The trend towards outsourcing production activities is also on the rise, with medical device companies in Asia Pacific taking care to produce quality products for the European market. In fact, Asian Pacific companies have taken several initiatives towards ensuring better and constantly improving quality standards as this increases uptake and acceptance in Western countries. India is emerging as the most favored destination in the East. The increasing awareness of these countries of the need to conform to global manufacturing standards makes them ideally suited to handle outsourcing of medical devices production.

Asia Pacific Medical Devices: Industy Drivers

One of the key factors driving the growth in the Asia Pacific healthcare market would be the economic slowdown in the U.S. and Europe. This is further enhanced by the decrease in U.S. dollar, which indirectly encourages the local spending in healthcare services. The Asia Pacific medical devices market was valued at $47.5 billion in 2007, and is expected to hit $51.6 billion in 2008, with a growth rate of 8.7 percent.

Regionally, the market is optimistic with the growth rate, owing to the large populations. The ageing populations in developed countries such as Japan, Australia, Hong Kong, and others also demand better coverage and higher quality of healthcare services.

Snapshot: India Medical Manufacturing

Currently, The Indian bio-manufacturing companies are expanding – Indian manufacturers are supplying to approved thriving regions, which provide vast growth and opportunities for Indian and Asian companies. The demand for medical devices has increased in India- the incredible growth in this sector and the stagnant raw material costs are making India highly competitive in this area. The growth potential for medical manufacturing companies, both directly and indirectly related to Asia Pacific have a fruitful outlook.

By

Zpryme: Emerging Markets Group

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