CANADIAN MEDICAL DEVICES INDUSTRY - LifeSciences BC

Industry Revenues Depend Significantly on
Exports
• In 2003, Canadian firms generated approximately
$4.0 billion 3 from medical device sales in Canada
and abroad, of which over half ($2.1 billion) were due
to exports. With $3.8 billion in medical device
imports, the size of the Canadian apparent medical
device domestic market was just under $6.0 billion.
• Canada’s exports of medical devices increased at a
solid compound annual growth rate (CAGR) of 10.5%
from 2000-2005 as exports increased from $1.6
billion in 2000 to $2.4 billion in 2005. During the
same period, import growth was also strong although
lower at a CAGR of 6.5%. Despite the higher CAGR
of exports compared to imports, the significantly
higher level of imports resulted in the medical device
trade deficit having increased slightly from $1.8 billion
in 2000 to $1.9 billion in 2005.
• The United States remains overwhelmingly the
primary market for Canadian medical device exports
and the destination for 76% of all medical device
exports in 2005. However, there is an increasing
diversification of destination markets for Canadian
medical devices as the export share destined for the
United States has decreased in each of the last three
years and is down sharply from 87% in 2002. In
2005, the other growing export markets for Canada
were the United Kingdom, a destination for 4% of
Canadian medical device exports, Germany (3%)
and China (2%). Since 2000, the most rapidly
expanding export markets, as measured by sales
CAGR, were China (168%), Singapore (93%), South
Africa (83%) and South Korea (79%).
• Since 2000, there has also been a shift in the source
of Canada’s medical device imports. Although the
United States still accounted for over half of all
imports in 2005 at 54%, the share is down from 68%
in 2000. During this period, both Germany (8%) and
China (6%) have doubled their share of the Canadian
market by way of sales CAGRs of 27% and 29%,
respectively. Higher average growth rates were also
posted by imports from Ireland (65%), Mexico (36%)
and Australia (29%), although their shares of total
imports remain at 3% or less.
• Canada’s trade in medical device products is
categorized using the Harmonized System (HS). The
accompanying tables list the top ten exports (using
2
$ Billions
the 8-digit classification) and the top ten imports
(using the 10-digit classification) according to dollar
value and share of total dollar value.
5.0
4.0
3.0
2.0
1.0
0.0
Canadian Medical Devices Exports and
Imports
1.6
3.4
1.8
3.9 3.8 3.9 4.0
1.9
2.1 2.2
2000 2001 2002 2003 2004 2005
Exports
Imports
Canadian Exports of Medical Devices by HS Code, 2005
Billions $
Total Exports 2.40
2.4
4.3
Share of Total
Exports
Top Ten Exports by HS code (8-Digit Level)
Sanitary articles of paper, incl sanit towels & napkins (diapers) for babies 0.56 23%
Mechano-therapy appl; massage app; psychological aptitude-testing apparatus 0.19 8%
Opacifying prep, x-ray; diagnostic reagents, designed for admin to patients 0.19 8%
Electro-diagnostic apparatus, nes 0.16 7%
Composite diagnostic or laboratory reagents, nes, 0.15 6%
Instruments and appliances used in medical or veterinary sciences, nes 0.12 5%
Medical, surgical, dental or veterinary furniture and parts nes 0.11 5%
Electro-cardiographs 0.10 4%
Parts and accessories for app based on the use of X-rays or other radiations 0.07 3%
Oxygen therapy, artificial respiration or other therapeutic respiration app 0.06 2%
Top Ten Exports by HS Code 1.70 71%
All other HS codes 0.69 29%
Source: Statistics Canada, World Trade Atlas
Canadian Imports of Medical Devices by HS Code, 2005
Billions $
Total Imports 4.33
Share of Total
Imports
Top Ten Imports by HS code (10-Digit Level)
Diagnostic reagent,w/n on a backing,for med diagnosis/mfr semi condu device/etc 0.36 8%
Instruments & appliances used in medical,surgical,dental/veterinary science,nes 0.34 8%
Bougies, catheters, drains and sondes, and parts and accessories thereof 0.24 5%
Mechano-therapy appl; pwr-op message appl; psychological aptitude-testing app 0.18 4%
Cannulae and the like, nes 0.16 4%
Instruments and appliances, used in dental science, nes 0.15 3%
Appliances which are worn or carried or implanted in the body nes 0.15 3%
App based on the use of x-rays, for medical, surgical or veterinary uses, nes 0.13 3%
Contact lenses 0.13 3%
Pacemakers for stimulating heart muscles, excluding parts and accessories 0.11 2%
Top Ten Imports by HS code 1.95 45%
All other HS codes 2.38 55%
Source: Statistics Canada, World Trade Atlas