State of the Medical Device Market in Peru

March 1, 2020

The economic projections appear to be positive for Peru in the near term, with the IMF forecasting 3.25% growth in 2020 and 3.75% growth in 2021. We’re seeing some of this reflected in medical devices/equipment.

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 Peru show moderately positive results, depending on the area of focus and product type.

2019 Medical Device Market Analysis for Peru

To analyze the direction of Peru’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 Peru 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 Peruvian 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 7 medical device/equipment categories will have drops in quantities in Peru:

74% decrease in the importation of radiography/radiotherapy machines
33% decrease in the importation of artificial joints
28% decrease in the importation of ultrasound machines
27% decrease in the importation of computed tomography machines
18% decrease in the importation of MRI machines
6% decrease in the importation of electrocardiograph machines
2% decrease in the importation of heart valves

In spite of these drops, there were some bright spots in the quantities imported into the country, which we cover further below.

In fact, overall, we forecast a 9% increase in the quantities of medical devices/equipment imported into Peru in 2019.

We also observed drops in the value of medical equipment imported into Peru in 2018-2019 in several key categories, specifically:

33% decrease in the importation of heart valves
24% decrease in the importation of MRI machines
24% decrease in the importation of artificial joints
10% decrease in the importation of ultrasound machines
1% decrease in the importation of electrocardiographs

Despite these decreases, overall, we expect to see a 1% increase in the value of imported medical devices and equipment into Peru in 2019.

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

Along with the downturns, some equipment categories posted increases. First, there was mild jump in quantities:

101% increase in the importation quantities of pacemakers
15% increase in the importation of equipment/parts for X-ray machines/parts
13% increase in the importation of equipment/parts for orthopedics/fracture treatment

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

62% increase in the importation value of radiography/radiotherapy equipment
49% increase in the importation value of X-ray machines/parts
20% increase in the importation value of pacemakers
13% increase in the importation value of equipment/parts for orthopedics/fracture treatment
11% increase in the importation value of computed tomography machines/parts

Interpreting the Results

Peru generally had solid growth in GDP from 2014-2019, the so-called “lost half decade” in Latin America: +2.39% in 2014, +3.27% in 2015, +4.05% in 2016, +2.47% in 2017, +3.99% in 2018 and +2.3% in 2019.

Some of this growth seems to have been reflected in the medical device/equipment market. In 2014-2019, when it comes to medical devices/equipment in Peru, we observed:

A CAGR of 21% increase in quantities
A CAGR of 1% increase in value

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

In 2018-2019, what we’re seeing with Peru is generalized margin compression in which the average value drops by 3%. The exceptions to this are imaging equipment, particularly CT scanners, X-ray machines and radiography/radiotherapy equipment. We also observed overall market growth: a 9% increase in quantities and a 1% increase in value.

Uncovering Opportunities

Given that Peru has some growth while also generalized margin 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 Peru, 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 Peru.

GHI Team