Medical Devices & Supplies

 

Taiwan

Overview                                                                        

 

                                               2004               2005               2006 (estimated)

Total Market Size                  $1,467            $1,523            $1,596

Total Local Production            1,246              1,416              1,512

Total Exports                             616                 789                 856

Total Imports                             837                 896                 940

Imports from the U.S.                263                 278                 295

Notes:  Figures are in millions of USD.  The exchange rates (1USD=NTD) were NT$33.48 for 2004, NT$32.15 for 2005, and NT$32.50 for 2006 (estimated).  The statistics are unofficial estimates.

 

Taiwan’s medical device market is growing rapidly as the island’s increasingly affluent population has more to spend on healthcare.  Foreign firms supply most of the local demand for advanced equipment.  Over 30% of imported medical devices are made in the United States.  U.S. products are recognized by local end-users as technically superior, of high quality and durable.  The major factors impeding the growth of U.S. market share are the higher prices of American equipment, and relatively stronger promotional efforts by other foreign competitors.  The national healthcare insurance program covers 98% of the eligible population, and provides reimbursement for a wide range of therapies.  Cost considerations have forced hospitals to discharge patients before their treatment programs are completed.  The system is under critical financial strain and the implementation of the so-called “Global Budget Program” is ushering in more stringent reimbursement pricing that may slow the growth of the market, especially for new devices.  Taiwan is a producer and exporter of disposable items and is also a contract manufacturer for foreign brand components.  Due to the expectation that all medical equipment will be backed by an extended maintenance contract, there is virtually no market for refurbished items.

 

Best Products/Services                               

 

·            Cardiovascular Equipment

·            Electroencephalographs

·           Computerized Tomography

·           Ultrasonic Scanning Apparatus

·           Magnetic Resonance Imaging Apparatus

·           Ultra-violet or infra-red Ray Apparatus

·           Syringes, with or without Needles

·           Tubular Metal Needles and Needles for Sutures

·           Other Catheters, Cannulae and the like

·           Artificial Kidney (Dialysis) Apparatus

·           Artificial Respiration Apparatus

·           Other Therapeutic Respiration Apparatus

·           Artificial Joints

·           Hip Prosthesis, Plates, Nails, Bone Screws, Bone Cement

·           Other Apparatus based on the use of X-rays, for medical surgical or veterinary uses

·           Cobalt 60 Teletherapy Apparatus

 

Opportunities                                            

 

The major customers for U.S. medical equipment will continue to be public hospitals and large private clinics.  Since business practices and sales channels in Taiwan are different from those in the United States, professional competence and local market knowledge are the most important factors when seeking representation in Taiwan.  As a whole, Taiwan’s market is both promising and competitive.  Despite the challenge posed by national health insurance reimbursement system reform, opportunities for U.S. suppliers of advanced medical devices are good and will likely remain strong for the foreseeable future. 

 

Resources                 

 

Department of Health (DOH): http://www.doh.gov.tw/cht/default.aspx

 

U.S. firms wishing to learn more about the medical equipment market are also encouraged to contact CS Taiwan, Angeli Chou, Commercial Specialist, at angeli.chou@N0SPAM.mail.doc.gov or visit the website http://www.buyusa.gov/taiwan/en.