Which will be a stronger factor? Emerging markets -or- Emerging companies?
To simplify and streamline my blogs, I have decided to cross-post my LinkedIn publications here. I published this blog on LinkedIn today, 6/26/2014. Please email me your comments, or respond on LinkedIn (https://www.linkedin.com/today/post/article/20140626144951-18359553-which-will-be-a-stronger-factor-emerging-markets-or-emerging-companies?trk=prof-post)
It isn't a secret that emerging markets (especially BRIC countries) represent big growth for most medical device companies - especially the large multinationals. Many of these companies are seeing a bigger portion of their revenues (some exceeding 50%) from non-US markets. And it seems this trend will continue, albeit, the growth rates may stabilize a bit.
Many large corporations have already spread their wings and established successful sales, service, and even R&D/manufacturing facilities in the emerging markets to take advantage of the local consumption.
What we have also seen in the recent years (since mid/late 2000s) is the proliferation of medical device manufacturers based in the emerging economies. This will be evident if you attend the twice-annual CMEF tradeshow in China. There are numerous x-ray and ultrasound manufacturers, but also increasing number of MRI, surgery and other 'big-iron' imaging modalities. There are more than a dozen superconducting MRI companies in China alone. This is certain to continue and even accelerate. The 'local' companies are not satisfied only serving their domestic markets. They are hungry, eager, and some capable, of becoming global players.
That brings me back to my title question. Which will be a stronger influence on the worldwide medical device marketplace? Continued growth of consumption in the emerging countries? Or will it be the penetration of medical devices engineered and manufactured in emerging markets?
Founder & CEO, Grow Beyond, LLC