The Iranian medical device market, ranking fifth in the Middle East and Africa valued at $832.5 million, is expected to expand by 9.1% CAGR (Compound Annual Gross Rate) to 2018, a new report predicts.
The growth could be affected if relations with the world’s leading economies don’t go well, as Iran is in the middle of nuclear talks with six world powers known as the P5+1, Business Monitor International said in its December report on Iran’s medical devices.
In 2013, Iran’s medical device market was estimated to be worth $832.5 million. However, per capita expenditure is very low, at $11.
In local currency terms, the Iranian medical device market looks set to expand by a 13.5% CAGR, which should see this market rise from an estimated 14,968.8 billion rials in 2013 to 28,254.4 billion rials in 2018. By individual product area, the 2013-2018 CAGRs are projected to range from 18.5% for consumables to 8.9% for other medical devices.
The market is projected to grow by a moderate CAGR of 9.1% in US dollar terms, taking the market to $1,284.3 million by 2018. Per capita spending is not expected to rise strongly over the same period.
The Iranian market forecast CAGR, in US dollar terms, is amongst the world’s top 30 highest, but such rates are not uncommon in the Middle East, with countries like Saudi Arabia, the UAE, Jordan and Israel set to expand by similar CAGRs during the forecast period.
Imports From the EU
Imports account for around 70% of the market, despite the manufacture of basic consumables such as syringes, needles and catheters, dental instruments and fittings and orthopedics. Imports were valued at $741.7 million in 2013, a rise of 0.4% in US dollar terms over the previous year. A large proportion of imports (67.1%) were procured from suppliers from the European Union. Based on the latest collated monthly data, imports to year ending in June 2014 grew by 4.4%, reaching $765.7 million.
Iran is not yet a major exporter of medical devices; therefore export performance tends to fluctuate. Exports had a negative 3.9% CAGR from 2008-2013. Based on the latest collated monthly data, exports to the year ending in June 2014 rose by 12.5% to $6.8 million.
Healthcare Overview
At 77.4 million in 2013, Iran has one of the largest populations in the region. The population growth rate of 1.3% is considered high by world standards. According to the latest estimates, around 5.3% of the population is aged 65 and over.
Healthcare expenditure was estimated at $16.7 billion in 2013, equal to $216 per capita. The 2013 figures represented a drop in dollar terms compared to 2012, due to exchange rate differences. Over half of total spending, 60.4%, was in the private sector in 2013. Out of pocket expenditure represented 88.0% of private expenditure based on the latest estimates from 2012.
A series of Development Plans, spanning consecutive five-year periods from 1990, aimed to rejuvenate Iran’s health sector by raising hospital bed and personnel numbers, building primary healthcare facilities, improving family planning and immunization rates, focusing on care of the elderly and prevention of non-communicable diseases, and reforming the state medical insurance scheme and social welfare systems. The latest, the Health Overhaul Plan, was launched in March 2014.
Trends & Developments
On a quarterly basis, imports for the three-month period ending in June 2014 rose by 11.9%, reaching $191.9 million, compared with the $171.5 million reported for the three months ending in June 2013.
On a quarterly basis, medical device exports to June 2014 rose by 16.4% to reach $1.8 million, compared with the $1.5 million reported for the period ending in June 2013.
In December 2014, the health ministry said only around one third of the $3.3 billion allocated for the health overhaul plan has been made available and that there will be more spending on healthcare development in the near future. The health ministry said it would realistically take around 10-15 years before the country’s health system becomes fully developed.
The development of the rural healthcare system is a major priority for the government. In November 2014, the health ministry said around 980 physicians were assigned to work in health centers in villages.
Since the health overhaul plan started in fiscal 2014, a total 884 rural health centers out of 2,430 nationwide had been renovated.
In November 2014, the government announced plans to establish more chemotherapy centers around the country. This is part of the government’s plan to address the rise of non-communicable diseases such as cancer.
In September the Social Security Organization (SSO) said it had allocated $1.7 billion for the employment of medical staff for the health overhaul plan for the current Iranian year, which started on March 21.
Health Minister Hassan Qazizadeh Hashemi has called for cooperation of the public and private sectors in the development of hospital services. Hashemi said the government should offer special incentives to attract more investors to the health sector.
In September 2014, the government launched what it calls a health package, to promote personal care strategies using different modes of communication, screening for early diagnosis and treatment, raising awareness on the risk factors of non-communicable diseases (NCDs), improvement of child and maternal health, mouth and teeth healthcare as well as environmental and occupational health.
Researchers at Isfahan University of Technology have produced hydroxyapatite/alumina nanocrystalline composite powders by sol-gel process for biomedical applications such as bone implants.
BMI also suggests that talks between Iran and the P5+1 (the United States, Russia, China, France, Britain and Germany) on the county’s nuclear energy program will continue through 2015 and 2016 without reaching a “permanent” agreement.
