2009 was a mixed year for German medical technology producers. According to estimates by Spectaris (Berlin / Germany; www.spectaris.de), the association representing the German high-tech industry, sector sales receded by 3%. Previously the main growth drivers, exports dropped sharply as a result of the recession. From January to October 2009, exports to all major regions were lower than those of 2008. By contrast, conditions in Asia and the Middle East remained good, according to Germany Trade and Invest (gtai, Berlin / Germany; www.gtai.de).

Sector experts blame financing problems for the decline in business experienced by German medical technology firms. Many major investments were postponed to a later date. At 43% of total exports, the EU is the most important market for German companies. Here, exports dropped by a moderate 2.1% from January to October 2009. By contrast, exports to other European countries plunged 20.3%. Exports to Russia declined almost 36% to EUR 337.6m as many projects were put on ice. In the US, which accounts for nearly a fifth of exports (around EUR 2.19 bn), sales of German medical technology were down roughly 4%.

However, German suppliers reported success in Asia, where markets rebounded relatively quickly from the crisis. The good performance (+6% overall) was principally driven by a sharp rise in orders from the two main regional markets – China (+9.9% to EUR 498m) and Japan (+10.8% to EUR 452m). Australian demand for German medical technology also resisted the downward trend, increasing by 13.2% to reach EUR 149m.

German medical technology exports (in million EUR)
Region	Jan.-Oct. 2008	Jan.-Oct. 2009	Change (in percent)
EU 27	4,986	4,881	-2.1
USA	2,429	2,314	-4.7
Asia	1,659	1,759	6.0
Europe (rest)	1,527	1,217	-20.3
MENA	510	559	9.5
Africa (rest)	112	113	1.1
South and Middle America	440	381	-13.5
Remainder	147	166	13.5
Total	11,809	11,390	-3.6

Source: Destatis / gtai

Emerging markets especially are becoming increasingly important strategic targets for medical technology firms. Increasing domestic demand for better healthcare services is forcing many countries to invest in their healthcare systems. At the same time, the number of private hospitals is on the rise since more people can afford better medical care.

Alongside Asia, the Middle East and North Africa (MENA) constitutes another promising regional market for German medical technology. Exports to this region increased by 9.5% in the first 10 months of 2009. The member states of the Gulf Cooperation Council (GCC), especially Saudi Arabia and the United Arab Emirates, are expected to provide particularly good prospects in the future. Saudi Arabia is the largest market for German medical technology in the MENA region, importing goods worth some EUR 128.3m in the first 10 months of last year. That was 24% more than what was imported during the same time frame in 2008. In the same period, goods worth EUR 50.6m were imported to the UAE, down 14.9% from 2008.

A big advantage of this region is the uncomplicated registration procedure in many countries. “A CE certificate is currently sufficient for marketing in the GCC states,” confirms Holger Johannsen, vice president marketing at Drägerwerken (Lübeck / Germany; www.draeger.de). “The situation is quite different in South America, for example, where it can take up to six months to get marketing approval for Brazil and up to a year for Mexico."