Key View
- We have revised up our forecast compound annual growth rate (CAGR) for Thailand’s medical device market in local currency terms.
- Thailand’s double-digit rise in medical device imports for 2023 highlights robust and sustained demand, reinforcing our positive outlook for the market.
- Thailand’s tourist arrivals are set to exceed pre-pandemic numbers in 2024, which will support the market’s continued efforts to become a leading medical tourism destination.
We have revised up our forecast compound annual growth rate (CAGR) for Thailand’s medical device market in local currency terms. We now project that Thailand’s medical device market will grow by a 2023-2028 CAGR of 6.9% in local currency terms and 4.9% in US dollar terms. This will take the market to a value of USD2.5bn (THB97.6bn) in 2028. Our US dollar forecast has been revised down due to a depreciating Thai baht. Our upwards revision follows strong double-digit growth in Thailand’s medical device imports in 2023 alongside Thailand’s continued efforts to promote its medical tourism industry and integrate digital health technologies in line with the Thailand 4.0 policy. The market will also benefit from an acceleration in economic growth over the next few years, with our Country Risk team forecasting real GDP growth of 3.0% in 2024 and 3.6% in 2025, up from 1.9% in 2023, supported by stronger demand for Thailand’s exports from major trading partners. We expect Thailand’s health expenditure as a share of GDP to rise to 5.2% by 2028, up from 4.7% in 2023, supporting investment in healthcare sector sector enhancements and the progress of healthcare initiatives.
Thailand’s medical device market is experiencing a notable upturn, driven by strong import growth, prompting a significant revision in market forecasts. As Southeast Asia’s second-largest economy, Thailand has seen an increased demand for advanced medical technologies, largely attributed to its aging population and expanding healthcare infrastructure. This demand surge has led to an unprecedented influx of high-quality medical devices from international manufacturers.
In recent years, the country’s focus on healthcare modernization and improved access to medical services has bolstered the market’s expansion. The Thai government’s commitment to universal healthcare, combined with private sector investments, has further fueled the need for sophisticated medical equipment. The import growth is particularly pronounced in areas such as diagnostic imaging, therapeutic devices, and surgical instruments, reflecting the nation’s priority on enhancing medical care quality.
Analysts now predict a robust growth trajectory for Thailand’s medical device market, with revised forecasts indicating impressive annual growth rates. This optimistic outlook is underpinned by continuous advancements in healthcare technology and strategic regulatory changes fostering a more attractive business environment for foreign manufacturers. As Thailand positions itself as a regional hub for medical services, the strong market dynamics are set to benefit both local healthcare providers and international medical device companies.
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