REPORT: Markets

Japanese drug delivery devices market to reach $3.4bn by 2023

Japan’s drug delivery devices market, which was pegged at $2.56bn in 2016, is estimated to reach $3.4bn by 2023, according to GlobalData.

A new report by GlobalData anticipates the Japanese drug delivery devices market to grow at a compound annual growth rate (CAGR) of 4.7% between 2016 and 2023.

The report highlights the present conditions of the market and offers projections up to 2023 on its diversified portfolio including central venous catheters, needle free injections, infusion systems and metered dose inhaler devices.

In 2009, Japans’ drug delivery devices market recorded unit sales of 107.56 million, which surged to 140.76 million in 2016 and is estimated to grow further to 2023.

Domestic and international competition

This lucrative market is dotted with several domestic and overseas firms vying for a share of the pie. Domestic firm Terumo Corp, however, emerged as the leading player, wresting 13.5% share in 2016.

“Japan’s drug delivery devices market will expand due to several factors such as rise in chronic diseases, demand for controlled drug release and new technologies,” explains GlobalData Healthcare analyst Tina Deng. “Players have to closely watch out the prevailing and emerging market trends in this competitive drug delivery devices landscape to tap the myriad opportunities.”

Nearly 60% of the Japanese delivery devices market is currently dominated by infusion systems and trends show that its growth pace will further continue, at a CAGR of 4.7% during 2016 to 23.

Market growth by segment

Infusion systems are a highly competitive segment in Japan due to the presence of several overseas and domestic firms. Despite the stiff competition, domestic players Terumo Corp and Nipro Corp enjoyed a combined market share of 30.5% in 2016, outperforming multinationals such as Baxter International and Becton Dickinson.

Deng continues: “Over the next few years, players in the infusion systems segment will invest in several strategies such as product launches, innovations, research and development, and M&As to prevail in the competitive market.”

The metered-dose inhaler devices segment, valued at $690.6m in 2009, grew at a CAGR of 3% to reach $849.3m in 2016 and set to grow at a CAGR of 3.5% through the forecast period.

The market for central venous catheters, valued at $175m in 2016, is now forecast to grow at a CAGR of 3.4% during 2016 to2023. Hospitals are the largest distribution channel for central venous catheters, with a 91.9% share in the revenues in 2016.

The report predicts that from 2016 to 2013, the needle free injection systems segment will witness a 3.9% growth. In 2009, this market was valued at just within $1m, but grew at a CAGR of 5.4% during 2009 to 2016, to touch $1.3m in 2016.

Despite the stiff competition, domestic players outperformed multinationals