Steady Growth Expected in Singapore’s Medical Device Market Amid Aging Population

Singapore’s medical device market is projected to grow steadily, driven by rising healthcare spending and an ageing population, despite risks from its trade-dependent economy and external market fluctuations.

Key View

• Singapore’s medical device market will grow steadily over the medium term, supported by a stable economic backdrop, rising healthcare expenditure and an ageing population.
• Downside risks to our outlook arise from Singapore’s trade-dependent economy.
• Singapore’s implementation of the Cybersecurity Labelling Scheme for Medical Devices will present both risks and opportunities for medical device manufacturers.
• Singapore’s ageing population and growing chronic disease burden will drive demand for medical products, including patient aids, diagnostics and orthopaedics & prosthetics.

Singapore’s medical device market will grow steadily over the medium term, supported by a stable economic backdrop, rising healthcare expenditure and an ageing population. We have maintained our forecast in both US dollar and local currency terms and project that Singapore’s medical device market will expand by a compound annual growth rate of 7.5% in local currency terms and 8.9% in US dollar terms over the 2023-2028 period. This will take expenditure to SGD1.4bn (USD1.1bn) by 2028. The market will benefit from rising healthcare expenditure, largely driven by Singapore’s ageing population which will increase demand for healthcare services and products. The market will also benefit from Singapore’s stable macroeconomic environment, including steady GDP growth and moderating inflation, which will support spending on healthcare and medical devices, driving investments in advanced medical technologies. 

Downside risks to our outlook arise from Singapore’s trade-dependent economy. This makes it vulnerable to economic slowdowns in other markets, including major medical device trading partners like the US, Japan and Mainland China. Slowdowns could negatively impact healthcare and medical device spending by reducing demand for imported technologies and products. Increasing trade barriers imposed by the US on China’s exports, such as higher tariffs and stricter regulations, could also weigh on market growth. These may lead to increased supply chain disruptions, which is significant given China is a key market to Singapore for both medical device imports and exports.

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Singapore’s medical device market is poised for steady growth as the population ages. With a demographic shift toward an older population, there is an increasing demand for advanced medical technologies and devices. The country’s robust healthcare infrastructure, combined with government support for innovation and research, creates an ideal environment for market expansion. The aging population is more susceptible to chronic diseases, prompting the need for sophisticated diagnostic and therapeutic devices.

Moreover, Singapore is strategically positioned as a regional hub for medical technology, attracting investments and collaborations from global firms. The government’s initiatives, such as the Healthier SG program, focus on promoting healthcare innovation and improving health outcomes, further driving the demand for medical devices. As healthcare providers seek to incorporate more technology into patient care, the market for devices like telemedicine equipment, wearable health monitors, and robotic surgical systems is expected to thrive.

In conclusion, Singapore’s aging population presents significant opportunities for the medical device market. By fostering innovation and addressing the healthcare needs of older adults, the country is set to enhance its status as a leader in the medical technology sector. This growth trajectory not only benefits the economy but also improves the overall health and well-being of its citizens.

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