Medical Equipment

Medical Equipment Industry-emerging industry with tremendous potential

With the highest number of green garment factories in the world, the Bangladesh RMG industry has been leading the world in sustainable garment manufacturing.

Overview

The medical equipment and devices industry is currently at a nascent stage with 85 percent of devices being imported. The size of Bangladesh market was estimated to be valued at USD 442 million in June 2020 and is expected to reach approximately USD 820 million in 2025, growing at a CAGR of 13%. The market currently is dominated by the instruments/ appliances segment and diagnostic imaging equipment in terms of value, which are expected to grow steadily.

At present, over 4,000 medical devices and equipment are in use in the country, about 5-7% of which are manufactured in the country. Among the locally produced items, majority are consumables/disposable with an estimated market size of USD 55-60 million. Aside from consumables, Bangladesh also produces orthopedic products, surgical sterilizers, hospital furniture, home care devices, electrocardiogram and other small instruments, albeit at a small scale. The demand for IVD device/ kit is expected to be the fastest growing segment, followed by cardio logical devices, consumables and diagnostic imaging equipment. The COVID outbreak has enhanced local production of personal protection equipment (PPE) including protective masks/ clothing, respirator, hospital gowns.

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Market size expected to cross $ 800 million by 2025

Cash incentive on export

Preferential access to as many as 52 countries for export.

10.3 %

Growth of healthcare service industry

400 million + USD

Estimated Market Size 2020

10.2%

Growth in import of medical devices (2014-2020)

800+ + million USD

Forecasted Market size by 2025

Growth drivers

Rising prevalence of chronic diseases resulting in a higher demand for healthcare services The changing disease profiles in Bangladesh is generating demand for tertiary or specialized hospitals catering to the treatment of non-communicable diseases. There is a high demand for specialized care for cardiac and oncology treatment at tertiary institutions which in turn is demand for medical devices and equipment

Increasing income and affordability

Increasing affordability resulting in higher demand and utilization of healthcare services, coupled with the current low per-capita spending on healthcare indicates future opportunity for growth in healthcare sector. While per-capita spending on healthcare services in Bangladesh has been growing at a CAGR of 9% since 2013, it still remains only USD 42 as of 2018, which is low compared to regional peers, implying potential to increase healthcare spending as income rises.

Overall growth in healthcare infrastructure

With growing demand, the number of healthcare service providers have been increasing rapidly across the country. As of the end of 2019, there were 255 public hospitals, 5,054 private hospitals and clinics, and 9,529 diagnostic centers under the registration of Directorate General of Health Services (DGHS).

Medical equipment manufacturer

Concessional import duty on raw material import of medical equipment (SRO 117/AIN/2021/06/Customs). In addition, in response to the COVID pandemic, the government has been waiving import duties for all raw materials used for production of PPE, face mask, hand sanitizer.

Medical equipment exporter

50% tax exemption for income derived from export,
No VAT imposition on export goods,
10% cash incentive on export value, etc.

Supporting Ministry/Institution

Consumables & surgical instruments

The demand for consumable and surgical instruments such as disposable/ precision safety syringes, needles, catheters, suturing kits, scalpel, scissors, bandages/ dressing, gloves, masks, endotracheal tubes, other disposable items is expected to continue growing along with the growth in number of healthcare service providers.

Equipment required in ICU/OT

With the number of healthcare institutions expected to continue growing, the demand for equipment used in intensive care unit and operation theatre such as diathermy machine, OT light/ table, ICU monitor, ventilator, suction, electrocardiograph, oxygen mask, etc. are expected to increase in the future. In addition, demand for hospital furniture is also expected to increase rapidly.

Diagnostic imaging and In-Vitro Diagnostics (IVD) devices

Changing disease profiles to non-communicable disease such as cancer, diabetes, cardiovascular disease, kidney disease will subsequently lead to increased demand for devices used for screening, diagnosis, treatment and monitoring of NCDs which includes diagnostic imaging equipment, testing kits and lab equipment, home monitoring devices used to monitor such disease, etc.

Cardiovascular devices

There is a huge demand for equipment related to diagnosis and treatment of cardio disease such as electrocardiograph (ECG) machine, stents, balloon, reflecting the rise of incidence in the country.