The total healthcare market in Australia accounted for € 88 Bln in 2013 and will continue to grow at 5 percent per year until 2016.
The following article summarizes the current situation and forecast of capital equipment, medical instruments, medical devices and pharmaceuticals markets in the country. Further in depth information on Australia’s economic overview and healthcare system is available through TforG’s World Healthcare Scan Intelligence Platform.
The total healthcare market in Australia accounted for € 88 bln in 2013 and will continue to grow at 5 percent per year until 2016.
Nearly all medical technology products manufactured in Australia are exported, while the majority of medical technology products used in Australia are imported.
Capital equipment and medical instruments
The market for medical equipment is mature, competitive, and price-sensitive. In 2013, the Australian capital equipment market was estimated at € 5.8 Bln and the annual growth for the next 3 years is expected to be 2 to 4 percent.
Emerging economies are capturing an increasing share of this industry, however; new opportunities are opening up in the Australian context.
In view of the changing demographics, the suboptimal primary care process, the long waiting lists, new applications of mobile health are appearing on the radar screen.
Both for monitoring and for therapeutic applications tele-health solutions can make a positive contribution especially for patients suffering from heart failure, diabetes, cancer etc .
Medical devices and implants
The Australian medical devices market in 2013 was estimated at a worth of € 4.35 Bln. Annual growth for the coming years is expected to be between 5 percent and 7 percent.
Most products sold in Australia are imported.
The disposables market is also quite mature and in most cases only low cost competitors have a chance at gaining entry. Emerging economies are capturing an increasing share of the industry. The BRIC countries (Brazil, Russia, India, and China) are able to deliver cheaper devices fast, decreasing the overall cost of healthcare.
In 2013 the total market for pharmaceuticals was estimated at € 9.4 Bln and it is expected to grow at 2 to 3 percent per year for the coming 3 years. It is expected to be among the 5 largest pharma markets in Asia (in absolute terms) by 2016.
Generic drugs account for around 12 percent of the value (34 percent in volume) of the market in 2012.
The Pharmaceutical Benefits Scheme (PBS) may push for higher usage of generics in the future. A number of branded drugs face patent expiry in the coming years resulting in more opportunities for generics.
Nevertheless, one expects that medication will have a slightly growing share of the HC costs.
Further in depth information on Australia’s economic overview and healthcare system is available through TforG’s World Healthcare Scan Intelligence Platform.
About Ritza Suazo
Researches and creates Clinical Pathways and Country Deep Dive Reports at TforG. With almost a decade of experience in Clinical Market research she also manages and recruits the TforG advisory board.
She graduated with a double major in psychology and international business management from Stony Brook University in New York and continues to apply her experience in research specializing in the US, UK, Spain and South American Markets.