Japan Medical Market Environment.
Opportunities in the Japan Medical Market. Japan is one of the world’s top economic powers after the U.S., and has a medical market to match. The medical device industry in Japan is worth 24 billion dollars according to the Annual Report of Pharmaceutical Production issued in 2005. Japan ranks third after the United States and the EU, and accounts for 13-15% of the total global market.
Analysis of the social environment surrounding the medical device market in Japan brings the following points to light:
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Japan’s demographic has one of the fastest and most pronounced rates of aging in the world. The population of elderly people over 65 years of age has reached a record high of 269.43 million, accounting for 20.5% of the total. This aging will continue to accelerate, and it is estimated that the elderly will account for 26% of the total population by 2015, reaching 38% in 2050. |
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The total labor force population in 2005 was 66.5 million. The labor force of the generation in the prime of life is on a downward trend due to demographic changes and a change in the attitude of young people toward their jobs. Consequently, the labor population ratio of the elderly over 60 has increased. In 2006, the labor force of the elderly over 65 years of age was 8.2% of the total, and this figure is expected to increase to 9.6% by the year 2015. |
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Japan's Ministry of Health, Labour and Welfare (MHLW) is making efforts to support and back up the employment of elderly people and women, and the female labor force has indeed been on an upward trend.
The three key consequences of this social environment are expected to be as outlined below. |
Expansion of the market for care of the elderly, led by increased population aging and the newly implemented nursing-care insurance system
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Expansion of the cancer market because of the increased elderly population |
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Expansion of the female market due to the increasing number of working women |
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Since the above two groups both represent important segments of the labor force, the market for non-invasive or minimally invasive treatment and related devices is strongly expected to expand. In other words, reduced or minimum patient downtime is the key to success. |
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