What is the
Potential of Indonesia Healthcare Market?
The Indonesia
Healthcare Market has shown a positive incline during 2012-2017 but
with respect to the expanding population of Indonesia, the market is still
underserved especially in the underdeveloped and rural areas as of 2017. People
across Indonesia are facing several health care issues due to sedentary
lifestyle and fast food consumption habits, such as obesity, diabetes, and
other cardiovascular diseases, which are demanding for technologically advanced
healthcare infrastructure. The healthcare market has increased on the account
of increasing healthcare facilities, innovation in pharmaceutical manufacturers
and clinical laboratory services and expansion of pharmacy retail chains across
the country. The market has witnessed enhancing innovation in nutritional health
segment, biopharmaceuticals and specialty pharmaceutical products.
Hospitals in the country contributed to the
maximum share of overall healthcare market as of 2016. Over ~% of the market
revenues were generated from the hospitals segment followed by the
pharmaceutical market with ~% in 2017.
The Indonesia Healthcare market revenue has
increased from USD ~ billion in 2012 to USD ~ billion in 2017 primarily due to
rising prevalence of non-communicable and lifestyle diseases including
diabetes, asthma and heart disorders. The industry has undergone various
deregulation programs which has encouraged foreign investment in the industry.
Furthermore, increase in demand for generic medicines has led the major players
in the industry to expand their production capabilities.
How has
Indonesia Medical Device Market Grown?
The market was in the growing stage during
2012-2017 and is almost entirely import driven. The market has seen increasing
number of foreign players supported by growing number of hospitals or other
health centers in Indonesia. There were ~ medical device distributors and ~
medical device production units in Indonesia as of 2015. Indonesian export
performance for medical equipment commodity also exhibited a positive trend.
The main export destination for Indonesian medical equipment are Singapore,
Germany, Japan, the United States, China, the Netherlands, India, Malaysia,
Myanmar and Afghanistan. The demand has increased majorly for diagnostic
imaging, medical consumables, aesthetic, orthopedic and dental products. This
is driven by increased healthcare spending and rising awareness about different
treatment methods. Rising share of esoteric tests has created demand for modern
equipment such as pacemakers with micro-chip technology, laser surgical device
and test kits, which may include monoclonal antibody technology.
How have
the Different Segments in Indonesia Medical Device Market Performed?
Diagnostic imaging products have accounted for
the largest share of ~% of the revenue share in Indonesia Medical Devices
market in 2017. This is due to the increase in the number of hospitals
specializing in cancer, cardiology and the increase of non-communicable
diseases who demand specialized medical devices in order to provide better
quality services. This is followed by medical consumable product with ~%,
aesthetic devices with ~%, auxiliary devices with ~%, dental products with ~%
and orthopedic implants with ~%. Hospitals both public and private are the
major end users of medical devices and have accounted for ~% of the revenue in
Indonesia Medical devices market in 2017. The medical clinics and Laboratories
and other healthcare institutions together have contributed ~% of the revenue.
The major method of procurement has been through e-catalogue where the
manufacturers and distributors can register their medical devices. Additionally,
the hospitals release tenders in order to procure the medical devices or they
have partnered with the suppliers
How Have
the Major Segments in Indonesia Medical Device Market Performed?
Imports have accounted for ~% of the revenue
share in Indonesia Medical Device Market in 2017. The imports are largely
related to more sophisticated medical and surgical instruments and
infrastructure. The share of local companies in the market revenue has
increased from ~% in 2014 to ~% in 2017. Most of these devices are imported
from USA, Germany, the Netherlands and Japan. The lower share of domestic
production is majorly due to lack of capabilities and fewer numbers of local
manufacturing companies in Indonesia
Syringes, Needles and Catheters have accounted
for the major share of ~% in the Indonesia medical consumables market in 2017.
Bandages and dressings have accounted for the second largest share of ~% in the
medical consumables market. Suturing materials have contributed ~% to the
revenue share. Ostomy products have accounted for ~% of the market and other
consumables registered ~% of the revenue share
What are
the major Trends, growth Drivers and Challenges in Indonesia Medical Device
Market?
E-Catalogue is a key development that the
government is continually improving on since it is a game changer that will
affect the procurement of medical devices. Through e-catalogue, bad
bureaucracies could be eliminated resulting in a more efficient procurement. At
the same time, transparencies in pricing help to create a healthy
competition. As of March 2015, 53
providers are listed in e-catalogue and the numbers continue to grow. Big
companies like Philips, Sysmex, Bbraun, and GE have also listed in e-catalogue.
The implementation of the Jaminan Kesehatan Nasional (JKN) insurance scheme has
spiked patient volumes significantly, heightening the demand for hospital beds,
medical devices, affordable medicines and diagnostic services.
Corruption and heavy bureaucracy are an
indisputable presence in the Indonesian market. Favorable payment term also
plays a role in the decision, and inflexibility in terms of sales, payment
schedules and length of contract could pose a barrier for buyers.
Further, some regulations regarding medical
devices might pose a challenge for exporting companies, such as the mandatory
registration of medical devices at the Ministry of Health before clearance
through Indonesian Customs. This process can be lengthy and must be conducted
by local distributors
What are
the Major Companies Operating in the Space?
The Indonesia Medical device market is dominated
by imported products. The local companies manufacturing is restricted to
production of medical consumables and hospital furniture. The market is in the
growing stage and with the implementation of Universal Healthcare System by the
government; the demand for medical devices has further increased. The major
competitive parameters include product portfolio, price, distribution network,
after sales services and additional services.
The major local manufacturers include Indo Health
Medical, PT Andini Sarana, PT Trimitra Garmedindo Interbuana, PT Mega Andalan
Kalasan and Citra Medika Lestari. The major international players include GE
Healthcare, Siemens, Philips, Samsung and Hitachi. Major distributors include
PT Mensa Bina Sukses, PT Transmedic Indonesia and PT Surgika Alkesindo.
What is the
Future Potentail of Indonesia Medical Device Market?
A shift towards more advanced medical equipment
in the country, the expansion of private healthcare providers, increased
government spending on healthcare and infrastructure development projects will
drive growth in the long term. Geriatric population would also increase the
demand for home-use devices as the patients in this age would opt for
procedures in the comfort of home. Peritoneal dialysis is major example of such
procedure, which is preferred by the patients to be conducted at home rather
than visiting dialysis centers for hemodialysis. High prevalence of diabetes in
the country is further going to increase the demand for glucose monitoring
machines for home-use and peritoneal dialysis equipment for dialysis of
kidney-failure patients, increasing the share of home-use devices. Aging
population is going to impact the demand for orthopedic products and implants
and assistive devices market in the positive manner
For more
information on the research report, refer to below link:
Related
Reports by Ken Research:
https://www.kenresearch.com/healthcare/general-healthcare/uae-healthcare-market-report/37505-91.html
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