The medical equipment industry in Bangladesh is a dynamic and quickly changing environment driven by an increasing need for innovative healthcare solutions. As the nation’s healthcare infrastructure has come under more scrutiny, demand for medical devices—which include everything from surgical instruments to diagnostic equipment—has noticeably increased. A growing middle class, more healthcare awareness, and population growth are all driving forces behind this market’s expansion.
Bangladesh’s expanding population required more and more imported medical supplies for many years. This was a result of multiple things. First off, there was no indigenous medical equipment production capacity. Bangladesh lacked the infrastructure and skilled labor required for local manufacturing due to little investment in this area and a lack of technical know-how. Second, foreign aid—which frequently included provisions for donations of medical equipment—was historically the main source of funding for the healthcare system. Although this method gave some access. It also made the system susceptible to outside changes and gave less control over the kinds and caliber of equipment that was acquired.
The excessive reliance on imports brought about a number of noteworthy difficulties. The main issue was the expensive equipment. Both government healthcare budgets and individual patient’s ability to pay for critical diagnostic tests and treatments were strained by the high cost of imported devices. In addition, the import equipment procurement process may need to be more convenient and drawn out, which could cause delays in the acquisition of essential instruments. This affected patient outcomes in the end as well as the effectiveness of healthcare delivery. The restricted availability of spare parts and maintenance services for imported equipment exacerbated these issues and further jeopardized the long-term dependability and functionality of these systems.
Factors Driving Growth
Acknowledging the drawbacks of depending exclusively on imports, Bangladesh has instituted a multifaceted strategy to promote the expansion of its indigenous medical equipment sector. Leading this endeavor are several government programs designed to foster an atmosphere that is advantageous for regional producers. Among these attempts are adjustments to policies that offer substantial benefits to businesses looking to invest in home manufacturing. In order to draw in investors, special economic zones with simplified regulatory processes and tax benefits have been created.
Furthermore, the government has given medical equipment research and development (R&D) top priority, emphasizing solutions that cater to the unique requirements of the Bangladeshi populace. This emphasis on regional R&D encourages creativity and guarantees that equipment made in the nation is not only reasonably priced but also well-suited to the particular healthcare needs of the nation.
Investing in the development of human capital is another essential component that propels progress. Acknowledging the need for a trained labor force, the government has started training programs for engineers, technicians, and other medical equipment sector specialists in partnership with academic institutions and commercial businesses. These courses give students the technical know-how and proficiency needed for a variety of design, production, and maintenance tasks. Additionally, partnerships with foreign organizations promote information sharing and introduce Bangladeshi specialists to the newest developments in medical equipment technology.
The advancement of the industry has also been greatly aided by the private sector. Growing investment, both domestically and internationally, has supplied the capital required to set up manufacturing facilities and purchase state-of-the-art technologies. Private businesses regularly engage in research and development, concentrating on creative and affordable solutions to satisfy regional market demands. This culture of entrepreneurship is creating a dynamic and competitive atmosphere that will eventually improve the affordability and quality of medical equipment made in the United States.
Market Overview
Currently, the medical device and equipment business is in its infancy, with 85 percent of gadgets coming from imports. With a compound annual growth rate (CAGR) of 13%, the size of the Bangladesh market was anticipated to be worth USD 442 million in June 2020 and is projected to reach over USD 820 million in 2025.
There are currently around 4,000 medical equipment and devices in use in the nation, with between 5 and 7 percent being made domestically. The bulk of the goods made domestically are consumables, like needles, blood bags, transfusion sets, cannulas, disposable/precision safety syringes, blood collection tubes, etc. Bangladesh’s annual market for consumables is projected to be around USD 55–60 million. Bangladesh also makes, albeit on a smaller scale, surgical sterilizers, hospital furniture, orthopedic products (bone-hook, drill machine, spine retractor), home care devices (blood pressure/glucose monitoring devices, compressor nebulizer, imaging film, electrocardiogram), and other small instruments in addition to consumables.
The COVID-19 pandemic has led to an increase in the production of personal protective equipment (PPE) locally, such as respirators, medical gowns, and protective masks and clothes. However, USAID data indicates that Bangladesh is still primarily dependent on imports to meet about 85% of its medical equipment needs in terms of value, with imports totaling more than $400 million in FY 2019–20. Given the rise in the disease’s occurrence in the nation, there is a great need for devices such as electrocardiograph (ECG) machines, stents, and balloons that are used in its diagnosis and treatment.
While high-end equipment and other diagnostic tools like magnetic resonance imaging (MRI), x-ray machines, ultrasonic scans, and computed tomography (CT) scans are imported, the medium-priced ECG machine is built locally on a small scale. A portion of the goods made locally are exported to other nations. Bangladesh has effectively repurposed its production capacity and experience in ready-made clothes to create personal protective equipment (PPE) by expanding or converting its current production facilities in response to the scarcity caused by the COVID-19 pandemic.
Growth Potential
Bangladesh’s demand for healthcare services is predicted to rise sharply due to rising purchasing power. By 2025, the Boston Consulting Group projects that between 30 and 40 million individuals will have moved out of poverty and into the middle class, earning a higher quality of life. An additional 30 million people will do the same. The present low per-capita healthcare spending in conjunction with the rising affordability points to potential future growth in the healthcare industry. Even though Bangladesh’s per-capita spending on healthcare services has been increasing at a CAGR of 9% since 2013, as of 2018, it is still just USD 42, which is low when compared to regional peers and suggests that healthcare spending may rise as income rises.
Medical Equipment Production
It goes without saying that the growth of healthcare facilities is what drives the need for medical equipment. The medical sector in Bangladesh grew at the fastest rate in the world between 2016 and 2019, with an annual growth rate of 14.6%. Business Monitor International Research predicts that this growth will continue. The demand for medical devices is predicted to increase due to changing disease profiles and a shift to non-communicable diseases (NCDs) that need surgery and long-term therapy.
There is a great deal of opportunity to expand local manufacturing of medical devices, even though it is now limited to lower-risk products and in its infancy. Local manufacturers of equipment and gadgets have the option to investigate the export market in addition to the domestic market. They can do so by taking advantage of privileged access to up to 52 countries for export.
Consumables & surgical instruments
Together with the increase in healthcare providers, there will likely be a continued need for disposable/precision safety syringes, needles, catheters, suturing kits, scalpels, scissors, bandages/dressings, gloves, masks, endotracheal tubes, and other disposable items.
Equipment required in ICU/OT
The demand for devices used in intensive care units and operating theaters, such as oxygen masks, ventilators, diathermy machines, OT lights and tables, ICU monitors, ventilators, and suction, is anticipated to rise due to the expected growth in the number of healthcare facilities. Furthermore, it is anticipated that hospital furniture will become increasingly in demand.
In-vitro diagnostics (IVD) equipment and diagnostic imaging
It is anticipated that as population diets and lifestyles change, the incidence of non-communicable diseases (NCDs) such as diabetes, cancer, heart disease, and renal disease will increase in Bangladesh. The need for tools used for NCD screening, diagnosis, treatment, and monitoring will rise as a result of these shifting disease profiles. These tools include diagnostic imaging medical equipment, testing kits, laboratory equipment, home monitoring tools, and more. For example, the World Bank Group (2019) estimates that 9% of people have diabetes, which could lead to a rise in local demand for insulin pens, glucose monitors, and diabetic strips. International investors may want to think about helping to produce these devices locally.
Health insurance
With households covering about 74% of all healthcare costs, Bangladesh has one of the highest rates of out-of-pocket spending (percentage of total healthcare spending) in the world. Furthermore, according to Swiss Re, a worldwide insurer, Bangladesh had one of the lowest rates of insurance penetration among Asian nations in 2018 with an aggregate rate of 0.6%. Given that the government intends to provide access to healthcare for all by 2032, there is potential for the Bangladeshi health insurance market to expand. International investors have the chance to be heavily involved in the development of health insurance.
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