This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/24/2018

Overview

 2015201620172018 (Estimated)
Total Local Production2057218324872561
Total Exports1790190019712030
Total Imports4033427142764404
Imports from the US
 		1439152415661612
Total Market Size4300455447924935
Exchange Rates.75.74.77.77
(total market size = (total local production + imports) - exports)
Unit: USD Millions

Data Sources: Local Production: Industry estimates 
Total Exports, Imports & Imports from the US: GTA using HS 9018, 9019, 9021 , 9022)

The Australian medical equipment industry sector has consistently provided good prospects for US exporters. Australia is the eighth largest market for US exporters of medical products and ranks tenth in the near-term medical device export market rankings according to the 2016 ITA Medical Devices Top Markets Report. 

In 2017, US exports of medical equipment and supplies to Australia totaled USD1.5 billion, representing 3.5% of total medical equipment and supplies exports.

Approximately 80% of domestic demand for medical devices and diagnostics is met by imports while nearly all medical technology products manufactured in Australia are exported.  The three major suppliers of medical imports are the United States, the European Union and China.  Over half of all imports originate from the United States and Germany. 

US medical equipment is traditionally well received due to its perceived high quality. The market is sophisticated, mature, and quick to adopt new healthcare technologies. Importers seek to obtain cost-effective and innovative products that will improve patient outcomes and reduce healthcare costs. 

Australia has a high per capita income, and there is demand for a full range of medical equipment. Opportunities exist for products that provide a significant improvement in clinical outcomes and products with clearly differentiated capabilities. There is also a growing demand for products that lead to faster patient recovery, reduce hospital and rehabilitation costs and alleviate or manage disability and chronic pain.
The USD5 billion market is price sensitive and competitive. Australia spends approximately 9.6% of its GDP on healthcare, which is similar to the United Kingdom (9.7%) but less than the United States (17.2%). Australia’s aging population will significantly influence the demand for products and products that serve the aging population are likely to experience growth.

Both the public and private sectors provide healthcare in Australia; as a result, government healthcare policies and public health influence the volume and pricing of healthcare products and services. Federal and State government spending accounts for 70% of total healthcare expenditure. The non-governmental sector (individuals and private health insurance) funds are the remaining 30%. Approximately 45% of Australians have private health insurance.

The Therapeutic Goods Administration (TGA) regulates the medical equipment industry. Australia’s regulatory framework is based on IMDRF guidelines which means that EU and Australian requirements are similar.  The majority of devices in Australia are supplied under EC certification and US exporters need to appoint an Australian representative/sponsor to obtain regulatory approval from the TGA.  US-manufactured medical devices require an EC Certificate from a European Union Notified Body.  Alternatively, US manufacturers can apply to the TGA for a Conformity Assessment Certificate.

Leading Sub-Sectors

Products that serve Australia’s aging population are likely to experience growth. BMI Research forecasts that the orthopedic and prosthetic market will be the fastest growing sector within the Australian medical device market over the next five years.

The leading underlying causes of death in Australia are coronary heart disease, stroke, dementia (including Alzheimer disease), lung cancer, chronic obstructive pulmonary disease (principally emphysema and chronic bronchitis), breast cancer, prostate cancer, diabetes and colorectal cancer. Although Australians are living longer, they are also increasingly suffering from chronic disease. 50% of Australians are estimated to have at least 1 of 8 selected common chronic disease conditions: cancer, cardiovascular disease, mental health conditions, arthritis, back pain and problems, chronic obstructive pulmonary disease, asthma and diabetes.

Opportunities

The demand for medical products and healthcare services is expected to grow for all age groups with continuing advances in medical technology, the increasing burden of chronic disease, the aging population, rising incomes and changing consumer expectations. Australians have one of the longest life expectancies in the world (sixth amongst the OECD countries) and demand will continue to increase as Australia’s aging population progressively relies on the health system for care.

Web Resources

Top Market reports Medical Devices
Australian Therapeutic Goods Administration (TGA)
Australian Department of Health and Ageing
Medical Technology Association of Australia

Information for state government tenders in the three largest states is available at:
NSW Health
Health Purchasing Victoria
Queensland Health
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.