State of the Medical Device Market in Ecuador

March 1, 2020

Ecuador has not had very strong economic growth as of late: the World Bank indicates that the country’s GDP dropped by 0.3% in 2019, with just 0.2% growth forecast for 2020.

However, this doesn’t seem to have impacted its medical device/equipment market.

According to ShareScope, a service from Global Health Intelligence (GHI) that analyzes import data and uses it to analyze market size & share for medical equipment and device brands in Latin America, 2019 figures for Ecuador show generally positive results, depending on the area of focus and product type.

2019 Medical Device Market Analysis for Ecuador

To analyze the direction of Ecuador’s market this year, ShareScope focused on the imports of specific types of medical devices and equipment, specifically:

Electrocardiographs
Ultrasound machines
Magnetic resonance imaging equipment
Equipment used in orthopedics/treatment of fractures
Artificial joints
Heart valves
Pacemakers
Computed tomography (CT scanners)
X-ray machines
Radiography/Radiotherapy equipment

While this is not an exhaustive list of all medical equipment imported into Ecuador in 2019, it represents the major categories in terms of overall volume; as such, it serves as an overall indicator for the market in general.

Why Import Data?

ShareScope analyzes import data as a proxy for sales. This is because few products are manufactured locally and therefore imported medical devices and equipment are sold to medical institutions. As such, import data for medical devices and equipment are strongly correlated to actual sales and thus are a solid indicator of market activity.

Defining “Equipment” and “Devices”
It’s important to note that the import data analyzed by ShareScope are not just the medical equipment and devices themselves, but also their parts and components.

2018-2019 Decreases in the Ecuadorian Medical Devices/Equipment Market

The chart below breaks down a year-to-year comparison for 2018-2019. It features the difference in both value and quantity in terms of equipment.

For 2018-2019, we forecast that only 2 medical device/equipment categories will have drops in quantities in Ecuador:

17% decrease in the importation of electrocardiograph machines
10% decrease in the importation of artificial joints

In contrast, there were many more increases in the quantities imported into the country, which we cover further below.

As such, overall, we forecast a 15% increase in the quantities of medical devices/equipment imported into Ecuador in 2019.

We also observed drops in the value of medical equipment imported into Ecuador in 2018-2019 in just 3 categories, specifically:

25% decrease in the importation of MRI machines
8% decrease in the importation of electrocardiographs
4% decrease in the importation of heart valves

As such, overall, we expect to see a 23% increase in the value of imported medical devices and equipment into Ecuador in 2019.

2018-2019 Increases in the Ecuadorian Medical Devices/Equipment Market

A significant number of equipment categories posted increases in Ecuador in 2019. First, there was significant jump in quantities:

154% increase in the importation of radiography/radiotherapy machines/parts
59% increase in the importation of computed tomography machines/parts
39% increase in the importation of ultrasound machines/parts
31% increase in pacemakers
29% increase in the importation of MRI machines/parts
22% increase in the importation of X-ray machines/parts
16% increase in the importation of machines used in orthopedics to treat fractures
1% increase in the importation of heart valves

In addition, we forecast an increase in the value of certain medical devices/equipment imported into Ecuador during the 2018-2019 period:

113% increase in the importation value of X-ray machines/parts
58% increase in the importation value of computed tomography machines/parts
46% increase in the importation value of radiography/radiotherapy equipment
22% increase in the importation value of ultrasound machines/parts
17% increase in the importation value of pacemakers
10% increase in the importation value of artificial joints
5% increase in the importation value of equipment/parts for orthopedics/fracture treatment

Interpreting the Results

Ecuador’s economy had a solid performance in 2014, with 3.8% growth, but since then it’s been challenging: a 1.2% drop in 2016, just 1.4% growth in 2018, a contraction of .3% in 2019 and tiny growth, if any, forecast for 2020 and beyond.

However, these challenges don’t seem to be reflected in the medical device/equipment market. In 2014-2019, when it comes to medical devices/equipment in Ecuador, we observed:

A CAGR of 8.9% increase in quantities
A CAGR of 3.8% increase in value

That’s the big picture for the last few years.

In 2018-2019, what we’re seeing with Ecuador is generalized margin compression in which the average value drops by 9%. The exception to this is X-ray equipment, which seems to offset these drops with a boost in units sold. Overall, there is market growth in both value and volume.

Uncovering Opportunities

Given that Ecuador had some significant growth while also generalized market compression, it becomes ever more important for medical device and equipment manufacturers to be analytical in finding new opportunities.

While existing contacts and prospecting are important, sales teams need to leverage more tools, such as:

Overall market sizing and its trends

Independent and unbiased market share tracking

Streamlining CRM systems to integrate data from multiple sources into one platform the whole team can use

Discovering new accounts that are ideal for high-end, cutting-edge medical devices

Determining market demand outside of your regular client base

This analytical approach is helpful for all markets, but much more in markets like Ecuador, in which data can make the difference between exceeding your sales goals and falling considerably short.

Contact us to find out more about how we can help you expand your sales in Ecuador.

GHI Team