The production and regulation of medical, diagnostic, and therapeutic devices, in addition to research and development, are the primary activities.The majority of companies in Canada's medical supplies sector are small and medium-sized businesses (SMEs). The market is estimated to be worth approximately $6.5 billion and to expand at a rate of 2.1% annually until 2026.
The Canadian Market Presents
Open doors for U.S. exporters of clinical gadgets. Seventy percent of domestic demand for medical supplies is met by total imports. China (20%), Mexico (9%), and Germany (4%) accounted for the remaining 20 percent of total PPE supply Canada and supplies manufacturing imports in 2021. Even though these numbers are lower than in 2020, it is probably because hospitals and other medical facilities have less money left over after the pandemic. Over the next three years, imports are expected to return to levels before the pandemic.
The COVID-19 pandemic had a direct impact on the market, leading to an increase in demand for devices used in COVID-related procedures and a decrease in demand for some devices used in COVID-related procedures. This past year also saw disruptions in the global supply chain for medical devices and changes in regulations to speed up the authorization of COVID-19-specific devices.
The prevalence of chronic diseases and an aging population are driving up demand for medical devices.44% of adults over the age of 20 said they had at least one chronic disease in 2019. In addition, the average age of all Canadians is 41.1 years old, with seven million people over the age of 65, or 18.5% of the population—a significant increase from 2016—being over 65.
The private sector provides healthcare services while the public sector finances them in medical supplies Canada's mixed public-private healthcare system. Each province has different requirements regarding procurement. Changes to healthcare procurement, including centralization initiatives, are currently being implemented by provincial governments across Canada or are being considered. All Canadian citizens and permanent residents are eligible to receive free hospital and physician services, except out-of-network services like outpatient prescription drugs and dental care.
The provincial government sets the budget for public facilities, which can change from year to year and is influenced by the external economic environment. As a result, hospitals and other operators in Canada medical supplies reduced their spending on medical devices when the COVID-19 pandemic kicked off, even though they received more federal funding at the start of the outbreak.
Exporters from the United States should be aware that the Canadian Food and Drugs Act and the Medical Device Regulations govern all medical devices. Health Canada's Medical Supplies Bureau is part of the Therapeutic Products Directorate. The Canadian Medical Supplies License (MDL) and certification through the Medical Supplies Single Audit Program (MDSAP) are required for manufacturers of medical devices in classes II, III, and IV to maintain a medical supplies license under these laws.
Best Opportunities
Cardiovascular and respiratory devices account for 22.3 percent of the market, followed by surgical devices (19.4 percent), medical and industrial diagnostic devices (18.1 percent), spinal devices (11.7 percent), and diabetes monitoring devices (11.7%).
In Canada, medical supplies manufacturers and distributors make money by selling their products to pharmacies, hospitals, clinics, primary care physicians, and other healthcare facilities, just like they do in the United States.
Opportunities and Trends
- To Consider Macroeconomic and environmental trends are driving opportunities in the medical supplies Canada sector. Demographic, economic, political, ecological, socio-cultural, and technological are the six major macro trends to consider.
- Regarding demographics, Canada's aging population presents an opportunity to concentrate on medical supplies that assist older populations.
- High inflation and issues with the supply chain are important economic trends that enable American businesses to increase their exports to Canada due to their proximity. However, in a post-pandemic environment, public spending capacity has decreased as a result of the healthcare system's economic strain.
- Politically, there are more stringent regulations and best practices for healthcare products as health becomes more important. When considering population movement and the region in which to invest in the distribution of medical supplies, Canada's shifting ecological environment is also an important consideration.
- Health and well-being are top priorities for Canadians. When designing medical devices, U.S. medical supplies manufacturers will need to take these cultural shifts into account.
- Lastly, technological advancements, including a greater emphasis on data analytics and artificial intelligence (AI), will alter the direction of public investments and enable the evolution of diagnostic medicine standards.
Digitalization and Virtual Care
During the COVID-19 pandemic required Canada medical supplies services to adjust to shifting public health measures. To public health guidelines, virtual care has emerged as a reliable method for gaining access to medical professionals. Telehealth presents an intriguing opportunity to permanently alter how patients seek medical assistance following the pandemic.
The public's perception of telehealth is primarily influential;
- Therefore, it is essential to address data security and technology.
- Any kind of virtual caregiving medical supplies must take public trust and changing regulations into account.
- However, before the Covid-19 pandemic, the Canadian telehealth market experienced steady growth and is currently expanding at a rate of 35% per year due to the need to provide healthcare services to rural communities and the subsector becoming increasingly mainstream.
When Designing and Exporting to Canada
It is necessary to take into account the disparity in regulation between geographical regions because this is one of the risks associated with providing virtual care.
Digital medicine is a subsector of the healthcare industry that is expanding significantly in tandem with macroeconomic trends like AI and advanced technologies.
The production of medical supplies in Canada that combines hardware and software to measure, intervene in, and diagnose medical conditions is a part of digital medicine.
Second, the goal of digital medicine is for it to be a technology that cannot be read by humans. This means that it will make algorithms that can run on a lot of data and cannot be analyzed by a doctor. Third, looking at genomic sequencing and how it can be used to predict future abnormal heart conditions.
The Healthcare Sector
Also being impacted by the larger environmental trend of personalized products within their packaging. Medical devices will be able to be more tailored to each patient and accurate through the use of AI and data analytics. An increase in both public and private funding for predictive, preventative, and personalized medicine is to blame for these technological advancements.
Procurement
In Canada medical supplies, hospitals and other healthcare providers can purchase their services, supplies, and equipment on their own or through shared services organizations or group purchasing organizations (GPOs). An estimated 26.4% of total healthcare spending is spent in hospitals alone. Dental and eye care specialists, as well as other professionals who work in nursing homes and residential care facilities, are additional significant buyers. There is also a growing demand for medical supplies, instruments, and devices in private clinics and outpatient facilities.
For the purpose of acquiring medical supplies and equipment, PPE supply Canadian healthcare systems use a variety of competitive tendering procedures. For information about the procurement opportunities that are available in each province, U.S. suppliers looking to export to Canada should look at the tendering websites of the individual provinces.
