BRIC Countries Boom in Global Neonatal Care Products Market

A new study from InMedica, (now part of IHS Inc. (NYSE: IHS)), The World Market for Neonatal Incubators, Warmers and Phototherapy Devices – 2012, highlights the emergence of BRIC countries (Brazil, Russia, India and China) in the global neonatal care products market. Traditionally, the neonatal care market has been perceived as a relatively slow moving with low growth and technologies that have changed little for several years. That perception is set to change considerably over the coming years, as emerging countries account for a more substantial share of the global market.

Fueled by increased healthcare spending arising from substantial economic growth in recent years, these countries are seeking to close the significant gap that exists with most developed countries in terms of healthcare provision. “BRIC countries are driving global growth in the neonatal care market and this is set to continue over the next five years. Growth rates in China and India for example, are projected at more than 10 percent per annum” commented Michael Haverty, senior analyst at InMedica.

Whilst some of the emerging countries remain at a relatively early stage in development in terms of the quality of neonatal care equipment used, there is evidence that the more advanced emerging markets are beginning to upgrade equipment and are expressing a preference for higher-quality products. This is prompting suppliers in these countries to focus on improving product offerings to meet higher demands and to establish a stronger presence internationally.

It is also noteworthy that other emerging markets across EMEA, Asia-Pacific and the Americas are showing signs of promise.  Stable African countries with strong economic growth are likely to present promising long-term opportunities for suppliers that can successfully manage the risks involved, and meet customers’ expectations in terms of pricing and quality. 

In the more established Western countries, conditions are more challenging due to high-saturation, a poor economic environment and growth rates reflective of a replacement market. That said, growth is still forecast in most of these countries over the next five years. Furthermore, new competitors are also expected to enter these markets, maintaining pressure on suppliers to offer innovative solutions to meet clients’ evolving needs.

Over the next five years, InMedica forecasts a five-year average compound annual growth rate (CAGR) of 4.7 percent for the global neonatal care products market, driven primarily by new installations in the Asia-Pacific region. In Western countries, replacements will continue to dominate the market. However, there will also be a need for increased connectivity between devices to facilitate more efficient and effective hospital information systems, as efforts continue to reduce costs in the context of restricted healthcare budgets.

Fuente: IHS Inc.