Why this is important to Wisconsin businesses: The U.S. is a major source of Japan’s medical device imports, and Wisconsin companies in health tech might find a welcome market there.
Wisconsin companies producing innovative medical devices and diagnostics may find a market for their products in Japan.
Health care is a priority for the Japanese government, and $100 million has been allocated in the 2022 fiscal year for medical devices and health care projects, according to the U.S. Department of Commerce’s International Trade Administration (ITA). The funding will go toward research and development of diagnostics and treatments, as well as devices that improve health and quality of life through the use of robotics, artificial intelligence, or Internet of Things technologies.
Japan’s market for medical devices is one of the largest in the world, and the U.S. Commercial Service Japan estimates that as much as 60% of the medical devices imported by Japan come from the U.S., when factoring in those from U.S. companies whose products are made in Japan.
According to the ITA, Fitch Solutions projects that Japan’s medical device market will show a compound annual growth rate of 5.9% from 2021 to 2026.
In 2021, Japan’s Office of Healthcare Policy identified several diseases that top the list for medical devices and pharmaceuticals. They include cancer, diabetes, cardiovascular disease, Alzheimer’s and other dementias, pneumonia, and kidney disease.
Wisconsin companies developing innovative, minimally invasive products—such as wearables or apps that promote healthier behavior or monitor disease progress—may find opportunities in the Japanese market, particularly if they address the key diseases the government has targeted.