Flourish or Perish: Comparative Analysis on Automotives, CE (Consumer Electronics), and Medical Industries in Thailand

Thailand’s healthcare market is promising. Healthcare spending in Thailand is expected to reach USD 24.6 billion in 2023, representing 4.0% of GDP with a CAGR of 5.4% between 2014 and 2023, accounting for growth in both the healthcare and the medical devices market, according to KPMG. Increasing healthcare expenditure is also due to Thailand’s aging population. A large percentage of the elderly have been diagnosed with at least one NCD, with almost half diagnosed with hypertension, followed by diabetes, heart disease, stroke, and cancer. These would increase demand for modern, hi-tech medical equipment, especially for diagnostic purposes.

Thailand’s estimated annual earnings for medical services are top in ASEAN at USD 4.5 billion, and 2.8 billion foreign patients seek medical treatment in Thailand. With ASEAN, Thailand is the largest importer and exporter of medical devices by value. The domestic medical device market in Thailand is forecasted to be worth USD 20 billion in 2022, with a CAGR of 7.5% between 2018 and 2022, according to a report published by KPMG based on figures sourced from Fitch Solutions reports. The majority of Thai manufacturers (43%) produce single-use devices, followed by durable devices (28%), supporting services (6%), reagent and test kits (6%), and others (11%).

The medical device market was estimated at USD 532.62 billion in 2021 and is expected to record a CAGR of 5.5% between 2022 – 2027. The COVID-19 pandemic had a mixed impact on the market. Currently, countries continue to face the enormous threat of the pandemic. Most pharmaceutical and biotechnological companies focus their R&D departments on identifying new molecules or lead for treating the coronavirus disease. The supply chain disruption caused due to the pandemic led to shortages of critical medical devices worldwide

In 2021, the value of Thailand’s medical device market was approximately USD 6 billion. To cope with the COVID-19 pandemic, local manufacturers increased their protective equipment (PPE) production. Exports of Thailand’s medical devices increased 22% over the previous year because Thailand is a significant producer and exporter of PPEs such as nitrile surgical gloves and surgical masks. In April 2021, the Thai Food and Drug Administration (Thai FDA) issued new medical device regulations to align the country’s regulatory system with the SEAN Medical Device Directive (AMDD) rules. The new regulations require technical data for all medical devices: this data is to be submitted using the ASEAN Common Submission Dossier Template format.

               With a robust healthcare infrastructure, highly skilled medical professionals, international standard medical services, and affordable healthcare costs, Thailand is a global hub for medical tourism. In 2019, approximately 3.5 million medical tourists visited Thailand. As of June 2022, the Joint Commission International (JCI) accredited 62 Thai medical institutes that offer various medical treatments, from organ transplants to dental and cosmetic surgery. Thailand is home to more than 38,512 healthcare facilities: 24,800 private clinics (64%); 9,800 public health and district health promotion center facilities (25%); 370 private hospitals (2%) – more than 1/3 are located in Bangkok; and 294 public hospitals (1%).

A rebound in the number of foreign patients coming to Thailand for treatment is supported by Thailand’s ability to offer high-quality care and services at its hospital. Many private hospitals plan to treat complicated conditions to meet increased demand from Thai and overseas patients. Many of the largest hospitals are expanding their existing premises and opening new branches. For example, Bangkok Hospital plans to increase its network from 49 sites to 50 by 2023 and expand its capacity by 172 beds, focusing on specialist treatment for neurological disorders and bone & joint conditions. Bumrungrad Hospital also plans to open a 202-bed Phetchaburi campus, while Kasemrad Hospital recently opened a new branch in Aranyaprathet in 2020.

               With its sizeable medical device market, nationwide healthcare access, and foreign-friendly regulatory environment, Thailand presents excellent opportunities for medical companies looking to enter Asia markets. Yet, creating a world-class healthcare sector is the priority, and the healthcare sector is expected to advance and expand significantly in the next few years. The aging population, a growing number of hospitals and clinics, increased governmental healthcare expenditures, and the popularity gained as medical tourists’ favorite destination will impact the demand and the market positively.

Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D. & MEGA Tech