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The Medical Device Market: Russia - a new market research

The Russian market is potentially huge, given its population and potential wealth of natural resources. Health expenditure remains low however, and patients are often forced to rely on out-of-pocket payments for treatment. A system of medical insurance is in place, but it is badly managed and the quality of treatment varies from region to region.

The Russian healthcare system retains most of its Soviet-era characteristics, remaining bureaucratic and inefficient. However, the government’s national ‘health’ project aims to improve healthcare standards. Since the project’s implementation, numerous medical facilities have been upgraded and a substantial number of medical personnel have been awarded salary increases.

In 2009, the Russian market for medical equipment and supplies was estimated at US$3,323 million. Per capita spending is very low at US$23 per capita. It is expected that the device market will continue to expand at a rate of 5.4% per annum, reaching US$4,319 million by 2014, or US$31 per capita.

Russian medical device manufacturers are generally small and undercapitalised, and tend to produce obsolete products; they can only compete with Western products in terms of cost. The country has a strong scientific research base but has no experience of commercialising new products.

Around 75% of the market is supplied by imports. Germany, the USA and Japan were the leading suppliers in 2007, accounting for over 57% of imports. The value of imports has generally increased over the last five years.


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