Medical equipment sales are going through the roof…
What was once just a U.S.-centric business is quickly spreading across the globe. According to one report, medical devices make up an industry that’s projected to reach $434.4 billion worldwide by 2017.
But in particular, one specific market is set to realize the biggest gains: China.
‘Within this largest of emerging economies dwells an expanding middle class that’s increasing in age and seeing improved medical insurance coverage,’ explains Rude researcher Noah Sugarman. ‘The Chinese medical equipment market already grows 15-20% annually, but that growth rate could look downright puny compared to its future growth prospects.’
Here’s the story…
The Chinese government recently launched a health reform program that aims to create a foundation for universal health care access by 2020 in a two-pronged effort committing close to the equivalent of $200 billion. That’s on top of already astronomical levels of government healthcare spending already in place in China.
‘Put that government funding alongside increasing demand from Chinese consumers and you’ve got the perfect catalysts for massive gains in market size,’ Noah explains…
‘All in all, the Chinese medical device market is projected to grow to $53.7 billion by 2015,” he continues. “And while medical equipment currently make up a little over 14% of the country’s total pharmaceutical industry, they’ve got the potential to see 40% market share in the near future – a percentage that most developed nations see.’
That means we could be smack on the ground floor of a massive new industry in the world’s most populated country. To put it into perspective, just imagine if you could’ve gotten on board the U.S. medical device market while it was still in its early stages…
This is one of the most exciting areas of the Chinese breakout that we’ll keep watching for new opportunities.
Regards,
Greg Guenthner
Contributing Editor, Money Morning
Ed. note: This article was originally published in The Daily Reckoning US.
