Sponsored By
Norbert Sparrow

June 1, 2016

2 Min Read
Steady growth projected for Mexico’s medical device market

Mexico’s booming automotive sector has received a lot of attention here and in other media. Meanwhile, medical manufacturing is also quietly building a significant presence in the nation, which has established consequential medtech hubs, notably in Baja California. Now, new analysis predicts that Mexico’s medical devices market is set to grow from $4.9 billion in 2015 to $6.5 billion by 2020, creating broader opportunities for medical device OEMs and their key suppliers. 

An increasing population that is both adopting more unhealthy lifestyles and getting older is spurring growth in demand for medical technology, notes research and consulting firm GlobalData (London). Non-communicable diseases such as cardiovascular and respiratory ailments, metabolic disorders and cancer are on the rise, and Mexico’s healthcare infrastructure has had to grow to keep pace.

With Mexico’s increase in healthcare demand, a number of opportunities are open for manufacturers, notes Adam Dion, GlobalData Senior Analyst. “Indeed, the government has been aiming to provide universal healthcare coverage, which would increase public healthcare expenditure and create better market opportunities for the medical device industry," says Dion.

The Mexican government plans to provide basic healthcare coverage to all of its citizens by 2020, and it has increased investment in healthcare by 10.2% between 2013 and 2017, according to the Offshore Group, a company based in Tucson, AZ, that helps companies establish operations in Mexico.

Free-trade agreements, which have become a political football in the United States during this election cycle, have also increased opportunities for businesses in Mexico and strengthened its exports and imports, adds Dion.

Medtech manufacturing hubs

Medical manufacturing is concentrated in hubs near Jalisco, Nuevo Leon, Chihuahua, Tamaulipas, Coahuila and Sonora, and last year, the Paso del Norte Biomedical Cluster was formed to capitalize on the cross-border medical and manufacturing expertise in the region around Juarez; El Paso, TX; and southern New Mexico. The largest hub is in Baja California, which is home to approximately 70 medtech-related companies and accounts for approximately half of all of Mexico's medical device exports. 

Geographic proximity, a skilled workforce and lower labor costs have made Mexico an increasingly desirable nearshoring option for medical manufacturing, notes the Offshore Group. “Nearshoring provides closer manufacturing partners. This can prove essential for communication, data exchange and agile production lines," notes the group.

Accessability to healthcare for larger swathes of the population and amplification of current demographic trends will further incentivize medical manufacturers and key suppliers to consider nearshoring their operations or expanding them if they already have a footprint in Mexico.

The report, CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Mexico, recently published by GlobalData, provides in-depth analysis analysis of the Mexican healthcare market. For more information or to purchase the report, go to the GlobalData website.

About the Author(s)

Norbert Sparrow

Editor in chief of PlasticsToday since 2015, Norbert Sparrow has more than 30 years of editorial experience in business-to-business media. He studied journalism at the Centre Universitaire d'Etudes du Journalisme in Strasbourg, France, where he earned a master's degree.

www.linkedin.com/in/norbertsparrow

Sign up for the PlasticsToday NewsFeed newsletter.

You May Also Like