Russian medical devices market is growing - opportunities for Finnish companies
Russian medical devices market is one of the largest in Eastern Europe, heavily dominated by import despite all efforts of the government for import substitution, even state clinics and hospitals prefer to buy foreign medical equipment if they have a choice, also there is a huge need for replacement of big number of high quality medical devices bought during 2009-2012 within the frame of National Project "Health" (around 10 BEUR).
Change in the market that has opened up this opportunity:
- In 2016 Russian market of medical equipment has increased by +10% and has reached 245.5 BRUB (around 3,5 BEUR) in value terms.
- Russian market of medical equipment is heavily dominated by import with around 80% market share in value terms. Import has increased by +3.5% and has reached 2,9 BUSD in 2016.
- As a result of the National Project "Health," that took place from 2009 to 2012, over 10,000 state clinics and hospitals received new high technology medical equipment. This equipment needs servicing, spare parts and disposables, so it is a good opportunity for Finnish companies to supply these products and services. Also, the service life of around 25% of these equipment will expire in the nearest future and these equipment have to be replaced (by some estimations up to 40% have to be replaced)
- Also, five countries, members of the Eurasian Economic Union (EAEU) are moving toward the common market for medical equipment. This process was initiated in 2016 and should be fully completed by 2021, when producers of medical equipment will have a choice to have one registration certificate for all five member countries members of EAEU (so the potential size of the common market will increase in times)
The estimated volume of the demand, growth rate and time window:
Russian market of medical equipment is heavily dominated by import with around 80% market share in value terms. Import has increased by +3.5% and has reached 2,9 BUSD (around 200 BRUB) in 2016. The leading suppliers are: Germany, USA and China but for sure there is a space for Finnish companies as well.
Offerings (products, services, solutions) that are relevant to this opportunity:
The structure of the imported medical equipment is the following: around 22%, diagnostic imaging; 15%, consumables; 9%, dental products; 8%, orthopedics & prosthetics; 13%, patient aids; and 33%, other medical devices.
Give examples of Finnish companies with competitive offering
Finnish companies are very active on the Russian market of medical equipment, has a long history of the presence on the market and very positive reputation. Russian customers appreciate high quality, functionality and durability of Finnish medical equipment.
In June 2018, Team Finland together with Finnish Embassy to Moscow will arrange "Finnish Healthcare Equipment, Products and Technologies" seminar in Russia (precise date, title and further details will be informed later). Representatives of the leading Russian state and private hospitals, distributors, importers, professional associations, state authorities and journalists will be invited as well as Finnish producers of healthcare equipment and products and Finnish healthcare service providers.
This seminar will be a useful tool for Finnish companies to find new business contacts in Russia and to increase local market awareness of Finnish offering in healthcare sector.
If you are interested in this opportunity, please contact: alexei.kozlov(a)spb.svkk.ru