Market Intelligence
Medical Devices Japan Trade Development

Japan’s Medical Device Market

As demonstrated by the FY2022 budget, the Government of Japan (GOJ) continues to promote the healthcare industry as an area of growth.  Recently, the COVID-19 pandemic demonstrated the importance of innovative healthcare products.  Furthermore, the GOJ has paid more attention to healthcare due to the emergence of innovative products such as wearable devices for better health management. 

Every year, Japanese ministries make budget requests, and the budget for the healthcare field is decided based on GOJ healthcare policies and goals.  The budget is then executed as a subsidy to the Japan Agency for Medical Research and Development (AMED).  In FY2022, the GOJ allocated approximately US$ 100 million for AMED’s medical devices and healthcare projects.  This funding will go toward research and development for medical devices and healthcare contributing to the advancement of diagnosis and treatments, as well as the improvement of quality of life utilizing artificial intelligence (AI), internet of things technology, measurement technology, and robotics technology.

In March 2021, Japan’s Office of Healthcare Policy of the Cabinet Secretariat issued a survey on Japan’s competitiveness in the medical devices and healthcare industry.  The survey identified diseases with high medical needs in Japan based on factors like top causes of death and top diseases that require support and long-term care.  The survey listed (1) malignant neoplasm; (2) diabetes; (3) cardiovascular disease; (4) Alzheimer’s and other dementia; (5) pneumonia; (6) kidney disease; and (7) frailty and sarcopenia, including weakness, fractures, and falls due to old age.  U.S. companies produce a wide variety of medical devices and diagnostics in many of the technology segments identified by AMED. 

U.S. companies that offer innovative solutions, including apps, that promote behavioral changes and monitor the progress of prognosis may find new opportunities in the Japanese market.  In addition, U.S. companies that produce devices and diagnostics that are minimally invasive that use AI and robot-assisted technology may also find new commercial opportunities, especially in the areas identified in the 2021 survey.  

The Japanese medical device market is one of the world’s largest markets.  Fitch Solutions estimates that Japan’s market will exhibit a compound annual growth rate of 5.9 percent from 2021 to 2026.

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