BMI View : 201 6 will be another challenging year for the healthcare sector as the economic outlook worsens on the back of a very weak currency . Domestic production is growing in sophistication, but the vast majority of the market will remain dependent on imports. T he FY2016 -17 budget release confirms that health spending will continue to grow, primarily to support the introduction of the national health insurance scheme .
|Total (USDmn)||Per Capita (USD)||Total (Local Currency mn)||Per Capita (Local Currency)||Exchange Rate (Local Currency/USD)|
|2015||1 108.8||20.3||14 153.7||259.7||12.8|
Latest Updates And Key Forecasts
We forecast a 2015-2020 US dollar CAGR of -2.6%, which will lower the market from USD1.1bn in 2015 to USD972mn in 2020. All product areas will fall, with the CAGR ranging from -3.4% for patient aids to -2.0% for other medical devices. We anticipate a 16.2% contraction in the US dollar value of the market in 2016, as a result of a further weakening of the rand.
We expect imports to continue to display a downward trend in US dollar terms mainly due to the current weak position of the South African rand, which resulted in another contraction of 2.0% for the three months to December 2015. In the 12 months to December 2015, imports fell by 2.4% taking the running annual total to USD1.1bn.
We expect medical device exports will continue to underperform in 2016, even with currency depreciation, which is making South African products cheaper in export markets . In the three months to December 2015, exports recorded a 0.1% increase in US dollar terms, an improvement from the -3.6% recorded in the previous quarter. In the 12 months to December 2015, exports fell by 2.7% y-o-y to USD190.3mn.
We have seen a number of innovative medical devices at different development stages so far in 2016, and this is an indication that domestic production is growing in sophistication. We have identified the Aceso Imaging System, the SpyGlass DS Direct Visualisation System and Canon's 3D camera. We note that the development of these devices is facilitated by mostly private-public partnerships.
The South Africa Medical Devices Report features market forecasts supported by trade, production and healthcare estimates by Espicom, a BMI Research's company. These forecasts and estimates focus on six product areas: Consumables, Diagnostic Imaging, Dental Products, Orthopaedics & Prosthetics, Patient Aids and Other Medical Devices.
Detailed product breakdown for market, trade and production data in South Africa provides industry professionals, strategists, company executives and analysts with independent forecasts and competitive intelligence on the South Africa Medical Devices industry.
- Benchmark BMI's Medical Devices market forecasts, which take into account macroeconomic and industry-specific forecasts for South Africa, to test analysis as it is a key input for budgeting and strategic business planning. Use our standardised data to gain a better understanding of market performance in South Africa.
- Target Business Opportunities in the South Africa Medical Devices market by using our assessments and projections for demographic trends, regulatory developments, investment dynamics and domestic demand in South Africa.
- Assess the activities and market position of your competitors via our assessments of domestic production, national and multinational manufacturers, along with the trade and distribution outlets of multinationals, key company developments and future growth prospects.
BMI Industry View
Provides industry, political and economic views. Briefly analyses the medical devices market, taking into account the latest industry forecasts, healthcare indicators and industry trends & developments.
SWOT analyses of the medical devices market, the political environment, the economic landscape and the business environment.
Evaluates and analyses the medical devices market in terms of historical and forecast trends, covering six product areas: Consumables, Diagnostic Imaging, Dental Products, Orthopaedics & Prosthetics, Patient Aids and Other Medical Devices. Additionally, presents annual and monthly import and export trade data.
Presents macroeconomic forecasts impacting the medical devices market.
Industry Risk Reward Index
Risk Reward Indices tool, which provides a globally comparative and numerically based assessment of the medical devices market’s attractiveness.
Assesses the medical devices market in the current year. Additionally, covers healthcare trends shaping the market, focusing on health status, healthcare system, healthcare funding, healthcare resources, healthcare activity and healthcare personnel. Includes historical healthcare data.
Industry Trends & Developments
Analyses the latest industry trends and developments shaping the market, in terms of monthly trade performance, forecast trends, production changes, regulatory developments, competitive strategies, political events and economic performance.
A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.
Values historical medical devices production, and analyses the presence of national and multinational manufacturers operating in the market. Also, compares the presence of leading multinational company operations, either via sales & marketing, distribution or manufacture. Finally, takes into account market access drivers, including major distribution channels, trade associations and trade shows.
Carefully explains the medical devices market methodology, trade classifications, Risk Reward Index methodology and sources used in the medical devices market Report.