Next big medtech opportunity is spelled 'BRICS'

The BRICS' demand for medical technology is expected to grow by 11%/yr over the next seven years until 2020. China is the largest market, spending $7.8 billion in 2012 on medical devices, followed by Russia ($5.1 billion), Brazil ($3.5 billion), and India ($3 billion), according to a new report from BricPartner. The total worth of the healthcare industry in 2020 is estimated to be close to $60 billion, with the Brazilian market growing the fastest. By 2016, Brazil, Russia, India and China will be amongst the top 10 of the world's largest life science markets.

"A key factor for growth is a growing population with a rising middle class who, with their increasing affluence, demand better quality medical care," BricPartner stated. The report also said new government guidelines and the relaxation of regulations are helping to open up the market for international medtech companies to invest.

Health expenditure per capita in the countries is led by Brazil, spending $964, followed by Russia ($549), South Africa ($320), China ($208), and India ($56). A far higher proportion of healthcare spending is applied in urban areas rather than rural areas with the urban concentration of the population growing faster in the BRICS region, compared to Europe and the U.S. "One of the biggest issues for governments in the BRICS counties is to ensure a fairer spread of healthcare spending throughout all regions within their countries," BricPartner stated.

BricPartner said the BRICS have a long-established record in manufacturing medical products, but the quality of domestic producers is lacking, with production geared towards lower value medical products. "So the biggest opportunities are in the middle-to-higher end of the spectrum of Medtech products," BricPartner said.