This article is contributed by Bijay Singh, Global Head, Business Unit Healthcare at DKSH.
The Asia Pacific (APAC) region, home to 60% of the global population, is emerging as a key market for global medical device companies.[1] This shift is underscored by the potential of the APAC region, which encompasses a diverse array of cultures, languages, and socioeconomic backgrounds, and a healthcare market that has already surpassed Europe to become the second-largest market globally, right behind the United States.[2] Key drivers for this growth include rising income levels, an ageing population, and an increased prevalence of chronic diseases, all contributing to the heightened demand for medical devices.[3] However, the APAC region embodies a spectrum of healthcare systems, ranging from densely populated urban centres with state-of-the-art medical facilities to remote communities facing formidable barriers to access. These disparities in the healthcare space highlight the need for innovative solutions to transform the healthcare delivery system, addressing key issues such as access barriers and shortages of manpower and resources. This is where the crucial role of medical devices comes into play.
Population Dynamics across APAC
By 2050, the number of individuals aged 60 and above in the APAC region is projected to more than double, reaching a staggering 1.3 billion.[4] This demographic trend brings with it a host of healthcare challenges, including an increased burden of age-related diseases and conditions such as cardiovascular diseases, cancer, and neurodegenerative disorders.[5]
Alongside an ageing population, there is a marked increase in the prevalence of chronic and non-communicable diseases (NCDs) like diabetes, hypertension, and obesity, which collectively contribute to 41 million deaths each year, representing approximately 74% of global mortality. [6] In APAC, NCD-related deaths are prominent, with some countries reporting rates as high as 90% of total fatalities.[7] The lasting impact of the COVID-19 pandemic exacerbated these challenges, severely straining healthcare resources, disrupting routine care services, and revealing critical gaps in preparedness and response capabilities.[8] Healthcare facilities are grappling with issues like overcrowding, reduced physician-to-population ratios, limited medicine availability, and inadequate funding. Projections from the World Health Organisation (WHO) indicate an imminent global deficit by 2030, with Southeast Asia alone expected to account for 40% of this shortfall.[9] For instance, in 2023, Indonesia reported a deficit of 31,481 specialist doctors,[10] while the Philippines anticipates a 25-year timeline to achieve the ideal doctor-patient ratio.[11] These challenges are further compounded by factors such as rapid population growth, lifestyle shifts, urbanization, emigration of healthcare workers, and an ageing healthcare workforce.
Harmonising Healthcare with Medical Device Innovations
Amidst the growing demand for healthcare services, the medical devices sector stands as a burgeoning industry poised to reshape healthcare approaches. Analysts project that, by 2028, the Asian medical devices market will account for more than USD 156 billion in revenue.[12] The next frontier in healthcare innovation will involve an increased focus on the digitalisation of medical devices, thereby enhancing access, convenience, and patient-centred care.
In recent years, we are already seeing more medical devices being used across the healthcare system:
- Remote monitoring and telemedicine: Medical devices, including wearable sensors, smart watches, remote monitoring devices, and telemedicine platforms, empower healthcare providers to remotely monitor patients’ vital signs, health status, and treatment adherence. This allows caregivers to monitor multiple patients simultaneously despite manpower shortages. For instance, the Dexcom G6 continuous glucose monitoring system, available in Singapore and Japan, allows for real-time monitoring, integrated with wearable sensors and a transmitter for the measurement of blood glucose values.
- Point-of-care testing: Point-of-care testing devices offer rapid and convenient diagnostic capabilities outside of traditional laboratory settings. These devices can be particularly valuable in resource-limited settings or remote areas. For example, during the COVID-19 pandemic, multiple home-test kits were developed to allow the first round of testing at home. This also helped people adhere to the social distancing norms.
- Self-management apps: Mobile health (mHealth) apps and devices empower patients to take an active role in managing their health and well-being. These apps enable users to track their exercise, diet, medication adherence, and vital signs, providing valuable insights into their health status and facilitating communication with healthcare providers.
- Home-based care: Technological advancements have facilitated the development of home medical devices, and enhanced patient care convenience while reducing hospitalization expenses, promoting patient independence, and improving quality of life. Devices such as home infusion pumps, portable oxygen concentrators, and remote monitoring systems empower chronic patients to manage their health outside of traditional healthcare settings. DKSH’s service Home Pulse exemplifies this shift by delivering high-quality healthcare services directly to patients’ homes in Thailand. This approach has the potential to enhance the role of home-based medical devices, optimizing resource allocation and cutting overall healthcare costs for the future.
While the accelerated adoption of medical devices can transform the healthcare landscape, a critical challenge lies in enabling healthcare professionals (HCPs) to interpret collected data. This is a common industry issue, where a significant amount of data either falls through the cracks or becomes overwhelming, making it difficult to analyse and utilise effectively. Statistics paint a concerning picture, revealing that 97% of health data produced by hospitals remains unanalysed, and 46% of healthcare leaders view data management as a significant burden.[13] This translates to a vast reservoir of potentially life-saving insights remaining untapped. Hence, addressing the challenges of data interpretation will allow HCPs to unlock the true potential of medical devices and pave the way for personalised healthcare in APAC.
Collaborative Efforts to Propel Medical Devices Growth
In 2023, the region’s medical devices market reached a value of USD 111.93 billion, and projections suggest that it will further grow at a CAGR of 6.8% and reach USD 166.1 billion by 2029.[14] Driving this growth in APAC demands a collaborative approach involving government bodies, healthcare providers, academic institutions, and industry stakeholders.
Regulatory developments play a pivotal role in strengthening the sector’s upward trajectory. Harmonising and streamlining regulatory frameworks are essential to facilitate faster approval and market entry of new medical devices. Regional agreements, like those within ASEAN[15] aim to establish consistent regulations, streamline approval processes, and enhance market access for medical devices across borders.[16] By aligning standards and regulations, regulatory bodies seek to create a more predictable and transparent environment for manufacturers, distributors, and healthcare providers.
Governments should incentivise research and development (R&D) through grants and tax benefits to stimulate local innovation of medical devices. Initiatives like Singapore’s National Health Innovation Centre (NHIC) and South Korea’s National Institute of Health (NIH) fund medical research and support clinical trials, often in collaboration with universities and healthcare companies, enabling efficient validation of new medical devices.[17] Training programs for healthcare professionals on the use of new devices are equally crucial to ensure their effective adoption and utilization. These efforts not only facilitate faster market entry but also ensure that innovations address specific healthcare needs in diverse APAC markets.
Additionally, healthcare distribution facilities are emerging as key growth drivers, streamlining supply chains and enhancing accessibility to medical devices across APAC. DKSH Healthcare’s OP1 in Taiwan, Asia’s largest automated healthcare distribution centre, utilizes advanced automation to expedite the distribution of healthcare solutions, including medical devices, across the region. Distribution centres such as this ensure efficient logistics and support timely delivery and inventory management, which is crucial for meeting healthcare demands in diverse markets. All in all, driving the medical devices sector forward in APAC involves a comprehensive approach to address regulatory, infrastructure, reimbursement, and training challenges while ensuring patient privacy, safety, and equity. Collaboration among healthcare stakeholders, technology developers, policymakers, and regulatory authorities is crucial to improving health outcomes. In this regard, DKSH Healthcare is committed to playing a vital role in this transformation by facilitating the distribution and adoption of innovative medical devices, empowering patients, optimizing resource allocation, and contributing to a healthier future for all in the region.
[1]https://asiapacific.unfpa.org/en/populationtrends#:~:text=The%20Asia%20and%20the%20Pacific,Developing%20States%20in%20the%20Pacific
[2]https://insights.omnia-health.com/management/navigating-growth-apac-regions-medical-device-landscape
[3]https://www.credenceresearch.com/report/medical-health-screening-services-market
[4]https://asiapacific.unfpa.org/en/populationtrends#:~:text=The%20Asia%20and%20the%20Pacific,Developing%20States%20in%20the%20Pacific.
[5]https://www.nature.com/articles/s41392-022-01251-0
[6]https://www.who.int/news-room/fact-sheets/detail/noncommunicable-diseases
[7]https://devpolicy.org/ncds-in-asia-and-the-pacific-recent-findings-and-key-challenges-20221116/#:~:text=According%20to%20the%20WHO%20report,also%20in%20the%20top%20ten.
[8]https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9354133/
[9]https://journals.lww.com/wsep/fulltext/2021/10001/implementing_a_decade_of_strengthening_the_health.15.aspx
[10]https://www.integrity-indonesia.com/blog/2023/10/10/overcoming-medical-workforce-shortages-opportunities-and-challenges-for-foreign-doctors-in-indonesia/#:~:text=According%20to%20a%20report%20from,serving%20a%20population%20of%20277%2C432%2C36
[11]https://www.philstar.com/headlines/2023/11/13/2311040/ideal-patient-doctor-ratio-seen-25-years-lawmaker
[12]https://www.statista.com/outlook/hmo/medical-technology/medical-devices/asia#revenue
[13]https://apacmed.org/wp-content/uploads/2023/08/APACMed-Power-Promise-of-Health-Data-Value_August-2023-2.pdf
[14] https://www.marketdataforecast.com/market-reports/apac-medical-devices-market
[15] https://www.aseanbriefing.com/news/aseans-free-trade-agreements-an-overview/
[16] https://asean.org/wp-content/uploads/2023/05/ASEAN-Guidelines-for-Harmonisation-of-Standards-2022-Version.pdf