Greater health care expenditure supported by robust economic growth will lead to nearly 13% annual growth in the market for pacemakers, implantable cardioverter defibrillators (ICDs) and cardiac resynchronisation therapy devices in China, according to Millennium Research Group. This will increase from a total of under US$330 million in 2009 to US$650 million in 2015.
While an aging population, increased risk factors for cardiac arrhythmias and heart failure and general economic growth contribute, a large part of the increased consumption will be driven by increased health care coverage in China. The Chinese government has committed to investing over US$100 billion in health care with the goal of providing coverage to 90% of the population by 2011. This increased health care spending provides greater funding for procedures, though actual reimbursement varies regionally.
“China has by far the largest market size among the large developing economies of Brazil, Russia, India and China,” said analyst Lauren Parker, Millennium Research Group. “Cardiac procedures are growing rapidly. Reimbursement is not full across the country, but patients are more able to pay out-of-pocket now than they were a decade ago. This combination of public and private ability to spend on healthcare has led to a large market and a strong growth rate, particularly for more sophisticated devices like dual-chamber ICDs and cardiac resynchronisation therapy defibrillators. The market for cardiac resyncronisation therapy defibrillators is forecast to grow at an annual rate of over 24% between now and 2015.”
At the same time as it is stoking demand, the Chinese government is trying to exert downward pressure on prices through what are called “tenders.” Tendering enables hospitals to publish contract notices for required medical devices, compelling manufacturers to drop prices to win contracts, without which they would not be able to sell to hospitals. Increased competition from low-cost Chinese suppliers of cardiac rhythm management devices will also limit price increases.
Millennium Research Group’s BRIC Markets for Cardiac Rhythm Management Devices 2011 covers sales of pacemakers, implantable cardiac defibrillators and cardiac resynchronisation therapy devices in Brazil, Russia, India and China.