Medical and Surgical Equipment Market in Saudi Arabia
The emergence of a new Industry – PPE kits
The COVID-19 pandemic has played a huge role in increasing the insistence of PPE kits globally. The PPE kits market is estimated to be valued at over US$60 billion in 2020 and is expected to register a CAGR of over 8% from 2020 to 2027.
The product segment is fragmented into hand protection, head protection, protective clothing, face and eye protection, fall protection, and others. The hand protection segment currently holds the largest PPE kits market share. With the rising spread of COVID-19 pandemic, hand protection has become extremely important, especially for healthcare professionals who are frequently exposed to infected people, thereby increasing the demand for producing equipment for protecting hands.
With the rise in the number of cases, the PPE kits industry sprung up in India, which now produces more than 450,000 Personal Protective Equipment (PPE) suits daily, and over 600 companies have been certified to manufacture PPE kits in the country. This makes India the second-largest producer of PPE kits in the world with market size of nearly US$1 billion.
The economy in focus – Kingdom of Saudi Arabia
A look at the Middle East market
The Middle East (ME) medical & surgical equipment market is fairly small in the global context, but it has witnessed strong growth in the past few years. Despite great differences in the financial status among the economies in the Middle East, the medical & surgical equipment market in most of the countries is growing at a substantial rate. This growth is mainly driven by factors such as an increase in healthcare expenditure, betterment in the economic status of the middle-class, improved healthcare indicators and insurance coverage, etc.
The Saudi Arabia Market
Saudi medical & surgical equipment market reached SR5.7 billion in 2018 from SR4.4 billion in 2016. The market grew mainly on the back of an increase in public funds for the expansion of healthcare provision capacity. A surge in the budget allocation by 8% during 2018-2019, along with the expansion of healthcare facilities like hospitals and clinics, has played a significant role in the development of the medical & surgical equipment market in the Kingdom.
In the future, the Saudi medical & surgical equipment market is expected to grow at a CAGR of 7.7% till 2023 from US$ 1.6 billion in 2019. The medical & surgical equipment market in the KSA possesses high growth potential in the coming years on account of the rising geriatric population, increasing awareness of health issues, and the growing consumption of healthcare services.
The medical and surgical equipment market in Saudi Arabia can be divided into two segments based on the outlook, and they are – Product Outlook and Application Outlook
⦁ Surgical Sutures and Staplers
⦁ Handheld Surgical Devices
⦁ Forceps and Spatulas
⦁ Auxiliary Instruments
⦁ Cutter Instruments
⦁ Electrosurgical Devices
⦁ Plastic and Reconstructive Surgery
⦁ Wound Closure
⦁ Obstetrics and Gynaecology
Key Trends and drivers
Saudi Arabia has been witnessing increasing urbanization in recent years; with it, the problems related to modern-day living is also growing rapidly in the Kingdom. Most of the in-patient beds are utilized for lifestyle diseases, which has also increased the demand for specialized care in this region. The majority of the lifestyle diseases are caused due to high cholesterol, obesity, poor diet, and high blood pressure.
Local manufacturing is expected to witness prosperity as the trend of relying on foreign companies could reverse. Currently, the majority of Saudi medical equipment companies manufacture consumables, including syringes, bandages, gloves, and disposables, but the Kingdom continues to import most of its specialized medical & surgical equipment requirements and extend their overall product portfolio. But, with changing times, many local companies are gradually finding their niche in mid- and higher-end product segments.
In terms of drivers, the Saudi government’s ambitious spending is a major reason for the growth of the sector. This is coupled with the growing healthcare spending and technological advancement in the field of medical science.
The outbreak of the COVID-19 pandemic has rippled in the medical and surgical equipment industry in the KSA. The country is the worst-hit within the GCC region and has witnessed a significant number of deaths due to the contamination by the Novel Corona Virus. Also, the demand for PPE kits and Intensive Care Units has witnessed spikes in the region.
Saudi Arabia witnesses a high rate of deaths every year. The medical and surgical equipment is of immense importance to the Kingdom. Saudi is ranked 23rd globally in terms of the highest rates of traffic accidents, which increases the need for medical and surgical products in the market. Also, the effect of the COVID-19 pandemic is expected to continue for some more time till the discovery of any effective vaccine. As such, the market for medical and surgical equipment is expected to witness major spikes in the next few quarters before the growth returns back to normal