Unlocking Future Growth: APAC Medtech Outlook 2025 (L.E.K. Consulting)

Summary

• APAC is home to approximately 60% of the global population and accounts for about 30% of global medical technology spending.p.1
• By 2023, the APAC medtech industry was valued at approximately $121 billion, projected to reach approximately $140 billion by 2025 at a 5% compound annual growth rate.p.1
• More than 210 million people in China were aged 65 and older by 2023, over 15% of the population.p.2
• India's National Medical Devices Policy 2023 aims for at least 15% annual growth through 2030.p.3
• Healthcare spending in major Southeast Asian countries is projected to rise by 6%-10% annually between 2022 and 2032.p.3
• Medtronic announced plans to invest $350 million in its engineering and innovation center in Hyderabad, India.p.7
• Aevice Health secured $7 million and APrevent Medical $6 million in Series D funding.p.10

Key insights

1. APAC medtech was valued at approximately $121 billion by 2023.p.1
2. China is the second-largest medtech market globally.p.2
3. Over 50% of the products in Indonesia's government e-catalog had obtained TKDN certification as of Q3 2023.p.8
4. Healthcare ranked third in total APAC buyout deal count in 2023, behind technology, media and telecom and consumer.p.9
5. Governments across APAC increasingly push onshore medtech production to move up the value chain and secure supplies.p.6
6. Distributor partnerships are particularly vital for multinationals entering APAC's fragmented markets.p.5
7. Digital health, telemedicine and healthcare services are key themes for private equity in Southeast Asia.p.10