The region is composed of a diverse range of markets, all at different stages of development. Many of the CEE markets exhibit fast growth rates, and the region as a whole is expected to grow annually by 10.7%, to reach US$11.1 billion in 2012. Croatia, Poland, Bulgaria and Slovenia are experiencing the highest growth rates, unlike the sluggish markets of Hungary and Russia.

The impact of EU accession on the medical device market
In May 2004, eight of the CEE markets in question joined the European Union. In January 2007, Romania and Bulgaria also became full members of the EU. Much of the medical device legislation within the region has therefore been harmonised with that of the EU, although countries such as Poland are still in the process of transposing EU directives into national law. The implementation of GMP is also taking place across most of the region and the inevitable improvement in the quality of overall production will lead to a rise in market values.

Multinational interest expands markets
The streamlining of device registration across the region has made the CEE markets more appealing to foreign firms. Increased multinational presence and the acquisition of domestic companies will raise the profile of the markets and encourage further migration into the region. Although multinationals tend to produce devices within Central and Eastern Europe largely for export, the products of companies partly-owned by foreign manufacturers are also destined for local markets.

Modernisation of healthcare facilities and market growth
Most CEE countries are attempting to decentralise their healthcare systems and are replacing ageing facilities and equipment. As a result, the value of imports has risen in recent years, especially in Romania, where imports rose by 40.0% between 2004 and 2005. Imports are likely to continue rising for the foreseeable future throughout the region. 12 Major Markets Covered!
Belarus, Czech Republic, Romania, Slovakia,
Bulgaria, Hungary, Russia, Slovenia,
Croatia, Poland, Serbia and Ukraine

Highlights from the region
THE REGION
Russia, Poland, the Czech Republic, Hungary and Slovenia represent the five largest markets in the region. The Russian market has the potential to expand much further due to its large population, but it suffers from a lack of wealth and the consequent inability to increase public health expenditure. Poland and Slovenia are also among the fastest-growing markets in the region, although they fall behind Croatia and Bulgaria. Slovenia is the wealthiest country in the region, which is able to spend 8.8% of GDP on healthcare expenditure; this is the second-highest rate, behind only Serbia. The Hungarian and Russian markets are growing at slower rates, hindered by under-investment in healthcare facilities.

BULGARIA
Although the Bulgarian medical device market is one the smallest in Central and Eastern Europe, it possesses a high rate of growth, at 13.0%. The pace of reform can be expected to increase now that the country is a full member of the EU and the market will continue to grow as healthcare facilities are modernised. This will inevitably lead to an increase in imports, which only rose by 3.6% in 2005. Medical equipment is mainly sourced from Germany and the USA, due to poor local production standards. Due to the receipt of international aid, health sector reform will be economically viable until at least June 2008, by which time the World Bank will have granted over US$87 million to the industry.

CZECH REPUBLIC
The Czech Republic was one of the larger and richer former Soviet bloc countries to join the EU in May 2004. The market is valued at US$769 million in 2007 and its per capita expenditure of US$76 is one of the highest in the region. Czech medical device regulations are largely in line with EU standards and EU membership has made the CE mark mandatory for local manufacturers. The country has a small but skilled manufacturing sector, with production geared towards the low to medium end of the technology scale. Domestically produced devices are of increasingly good quality.

POLAND
The Polish market is estimated at US$1,563 million in 2007, placing it in the world's top 20. This impressive market size can be partly attributed to the population of 38 million, although per capita expenditure is average. Poland has a strong industrial base but still imports around 80% of its medical devices. This is similar to the situation in other neighbouring countries, where local production does not meet the demand for equipment. Poland experienced medical device import growth of 26.5% in 2005, the second-highest rate in the region.

HUNGARY
Hungary is a highly developed Central European market. The recent loosening of regulations governing the ownership of healthcare facilities has provided a gateway for private organisations into the healthcare sector. To date, privatisation has largely been confined to the management of facilities, although heavier investment in equipment is expected to follow. This will increase the market size further, as private facilities tend to purchase the best, and therefore most expensive equipment available. The Hungarian medical device market stood at US$666 million in 2007 and is expected to reach US$900 million by 2012, assuming that the current annual growth rate of 6.2% is sustained.

ROMANIA
The Romanian market is performing well and expanding at a rate of 7.8% per annum. Romania joined the EU in January 2007 and has worked hard to meet the accession requirements. The rate of market growth may increase over the next few years as the benefits of EU membership are felt. The degree to which the health sector will improve however, will depend on the coalition government's ability to curb the political meltdown that has occurred since EU accession and recommence reforms.

UKRAINE
Ukraine is the second largest country in Europe, yet represents only a small, if fast-growing, medical device market. Per capita expenditure is valued at only US$6 in 2007 and the market size is an estimated US$281 million. Due to the growth rate of 12.8% however, the Ukrainian market is expected to reach US$521 million by 2012. This stands well above the projected US$308 million for Serbia and US$337 million for Belarus. The market growth rate remains high but has fallen slightly to reflect the value of imports, which fell by 17.8% in 2005, the largest decrease in the region. Despite this, the rate of reform and privatisation within the healthcare sector is expected to rise under the current President and this will in turn boost the market size. ..... FOR EVERY MARKET

MARKET OUTLOOK
Current market size
Unique 5-Year market projections to 2012
Market outlook
Market structure
Statistical data on imports and exports
Market developments, covering recent and impending developments with respect to key issues such as regulation, health facilities, funding and
government policy
Key national data projections
International market comparisons


FOR EVERY MARKET

BACKGROUND DATA
Population data, including growth trends and age structure
Demographic indicators detailing principal causes of death and morbidity

HEALTHCARE SYSTEM
Organisation & administration
Health expenditure
Expenditure by source of funding and type
Hospital services
Hospital data such as beds by type, region, specialty, patient admissions and surgical procedures
Outpatient care
Medical personnel
Data on healthcare professionals covering such areas as doctors by specialty, nursing staff and dentists

ACCESSING THE MEDICAL MARKET
Regulatory environment
Distribution guide and trade fair information
Domestic production

CONTACT DETAILS
For healthcare organisations and trade
associations