Medical devices
A strong and specialised medical device industry
Most of the Nordic and Baltic countries have a tradition of medical device manufacturing. This is often an important activity, run both by local manufacturers and by multinational groups having plants in those countries, usually as a result of their external growth.
Companies tend to favour technology intensive products, with a fairly high level of specialisation, linked with an active international development. This is a common feature between most manufacturers, linked to the moderate size of their home markets. The companies following this strategy often achieve a strong market share in their home country, in their particular sub domain. On the other hand, sales in their home country account for only a few percent of their overall sales.
In this context, having a good knowledge of local and regional competitors is a decisive issue for foreign providers willing to develop their activities in one or more countries of the Nordic/Baltic region. Many opportunities exist for foreign providers as each country specialises only in few specific productions, as local production hasn't been built according to local but to global needs.
Research projects are also a field where strong collaboration exists with foreign teams and companies.
Sweden, a challenging key market
Sweden is both the biggest market (the total medical device market is estimated to be above 1 600 M € in 2009) and the main regional producer. Big names include Getinge, Mölnlycke, Astra Tech and Gambro, without mentioning large producers connected to dental care, rehabilitation and diagnostics.
Regional councils, in charge of public healthcare centres and hospitals, are still by far the main potential customers with up to 85% of total medical device purchase.
To face strong local competitors, it is important for foreign providers to offer innovative products, with a focus on solutions allowing greater treatment efficiency, for example reducing hospitalisation time.
The second market in size is Denmark, with about 1 500 M € expected to be spent in 2009. The country also has a strong medical device production, though more specialised than Sweden. The country is among the world leaders in hearing aid equipments, with companies like Widex or Oticon selling worldwide. Unomedical manufactures sterile single-use devices. There is also large X-ray apparatus production.
The medical device market is around 900 M €/year in Finland. GE Healthcare, after purchasing Instrumentarium in 2004, is now the biggest producer of medical equipment in the country, its main products being diagnostic imaging systems. Planmeca is a global player in dental equipment. Besides that, the country has a wide network of medium and small innovation based companies, often born within clusters and connected to universities, especially in the field of diagnostics. These companies follow a dynamic export strategy, always opening greater opportunities than their home market. For example, Inion specialises in biodegradable and bioactive implants.
With a market size of 800 M€/year, Norway is the fourth biggest market in the area. Contrary to the other Nordic countries, Norway has only a limited medical device industry and imports are twice higher than exports. Besides few production sites belonging to international groups, some of the biggest Norwegian companies are MediStim, Laerdal and Neorad together with numerous small and medium diagnostics companies.
Baltic countries are small markets (100 to 200 M€/year each), but on the other hand they have little local production able to compete with imports and offer many opportunities for foreign providers. Estonia has among the 3 countries the strongest local industry with few specialised medium scale exporters and foreign groups operating plants like Karl Stortz (endoscopes). Lithuania imports 70% of its medical equipment needs and Latvia 80%. Icelandic market is small and production mostly limited to Ossur's orthopaedic equipment.
Useful links
Sweden
Denmark
Finland
Norway
Estonia
Latvia
Lithuania
Iceland
Events
15-17th April 2010:
Med Baltica,
Riga, Latvia
12-15th June 2010:
Helsinki, Finland
15-17th September 2010:
Baltmedica
Vilnius, Lithuania
10-13th January 2011:
Helsinki, Finland