Greater healthcare expenditure supported by robust economic growth will lead to nearly 13% annual growth in the market for pacemakers, implantable cardioverter defibrillators (ICDs), and cardiac resynchronization therapy (CRT) devices in China, according to Millennium Research Group (MRG). The market will nearly double from a 2009 total of under $330 million to $650 million in 2015.

While an aging population, increased risk factors for cardiac arrhythmias and heart failure and general economic growth contribute to the growth, the research firm says a large part of the increased consumption will be driven by increased healthcare coverage in China. The Chinese government has committed to investing more than $100 billion in healthcare with the goal of providing coverage to 90% of the population by 2011. This increased healthcare spending provides greater funding for procedures, although actual reimbursement varies regionally.

“China has by far the largest market size among the large developing economies of Brazil, Russia, India, and China,” says MRG analyst Lauren Parker. “Cardiac procedures are growing rapidly. Reimbursement isn’t full across the country, but patients are more able to pay out-of-pocket now than they were a decade ago,” she says. “This combination of public and private ability to spend on healthcare has led to a large market and a strong growth rate, particularly for more sophisticated devices like dual-chamber ICDs and cardiac resynchronization therapy defibrillators (CRT-Ds). The market for CRT-Ds is forecast to grow at an annual rate of over 24% between now and 2015.”

At the same time as it is stoking demand, the Chinese government is trying to exert downward pressure on prices through what are called “tenders.” Tendering enables hospitals to publish contract notices for required medical devices, compelling manufacturers to drop prices to win contracts, without which they would not be able to sell to hospitals. Increased competition from low-cost Chinese suppliers of cardiac rhythm management devices will also limit price increases.

Millennium Research Group’s report “BRIC Markets for Cardiac Rhythm Management Devices 2011” covers sales of pacemakers, implantable cardiac defibrillators (ICDs), and cardiac resynchronization therapy (CRT) devices in Brazil, Russia, India and China.