Why this is important to Wisconsin businesses: Socioeconomic and demographic trends create opportunities for Wisconsin exporters
Socioeconomic improvements and demographic shifts resulting from an aging population are expected to lead to a surge in diagnostic testing in Mexico. Driven by technological improvements and an increasing emphasis on improving efficiency aided by planned investments in laboratory scientific equipment, the global market for clinical chemistry analyzers and reagents is forecast to reach $6.3 billion by 2016.
Developments in the clinical diagnostics market have historically been technology-driven, powered by innovations in detection technologies, introduction of computerized systems and unearthing of new biochemical markers that have enabled laboratories to produce high-volume test results. The clinical chemistry analytics market continues to focus on technological enhancements to combat the pressure for simplifying workflow, enhancing quality and accuracy through the introduction of automated and user-friendly systems. Automated analysis tools are gaining ground in the market. Europe and the U.S. account for more than 71 percent of the global clinical chemistry analyzers and reagents market, according to a recent report from Global Industry Analysts Inc.
The Mexican market is expected to benefit from the educated patient group, who proactively request tests, especially high-end tests for early diagnosis and better disease management. Although the market for clinical chemistry analyzers in developed nations is highly mature, growth mainly stems from low-volume clinical chemistry analyzers. The Mexican market for clinical laboratory instruments faces challenges such as keeping up with the latest technological developments, the commodity status of commonly ordered tests, and reimbursement limitations. To remain competitive and cost-effective, many clinical laboratories partner with diagnostic manufacturers via reagent rental contracts.
Dominant players in the Mexican clinical laboratory market are domestic products manufactured by Abbott Diagnostics and Roche Diagnostics and imported products from Abbott Laboratories, Alfa Wassermann, Beckman Coulter, Cholestech, Hemagen Diagnostics, Ortho-Clinical Diagnostics, Olympus America, Roche Diagnostics, Siemens Healthcare Diagnostics, Sigma-Aldrich and Symex Corporation, among others.
Mexico is estimated as the second-largest laboratory equipment market in the Latin American region. The market is dominated by imports, principally from the U.S. U.S. manufacturers benefit from geographic proximity and preferential terms under NAFTA. Some of these imports, however, are used to produce goods which are eventually sent back to the U.S. Mexico is the third-largest market importer in the Americas, behind the U.S. and Canada. Brazil is not a big importer in comparison, as it relies on local production.
Population growth, increasing health expenditures, chronic disease incidence, and new technology acquisition, particularly diagnostic and medical equipment and devices in the public sector, are factors contributing to growth of this market in Mexico. However, the weakening value of the Mexican peso against the U.S. dollar has hurt U.S. exports into the market.