Medtech (Russian market)

Medtech (global market)

Main article: Medtech (global market)

2024: Siberian Medical University approved 7 medical tech projects, which will give 150 million rubles

On January 23, 2024, Siberian State Medical University (SibGMU) named seven projects for the formation of SibMed.Lab. They will help to obtain results in priority research areas within the framework of ongoing strategic initiatives. Read more here.

2023

Growth of the medical technology market for 3 years by 55% to 37.9 billion rubles

At the end of 2023, the turnover of the medical technology market (MedTech) in Russia reached 37.9 billion rubles. This is 55% more than in 2020, when costs in this area were estimated at 24.5 billion rubles. The corresponding indicators are given in the BusinesStat study, the results of which were released on June 20, 2024.

Published statistics cover medical services, applications, devices, tools and equipment. MedTech solutions, as noted, provide comprehensive and continuous patient care - from early diagnosis to treatment and health monitoring. Among the significant players in the Russian market are named Innovative Medicine LLC (SberZdorovye), Tsifromed LLC, RT Medical Information Systems LLC, Dokdok LLC and Bestdoctor LLC.

According to estimates, in 2019 the turnover of the medical technology industry in Russia amounted to about 11 billion rubles. In 2020, rapid growth was recorded: costs jumped by 122.3%, reaching 24.5 billion rubles. This was facilitated by the COVID-19 pandemic: against the background of the spread of coronavirus, technologies for remote examination and consultations, such as telemedicine systems and mobile applications for health monitoring, began to gain popularity. At the same time, government funding for software development increased as part of the project to create a single digital health care circuit.

In 2021, the market growth rate decreased to 9.5%, and the final result amounted to 26.9 billion rubles. In 2022, an increase of 14.2% was recorded - up to 30.7 billion rubles. Despite the normalization of the epidemiological situation, consumers who managed to assess the convenience of telemedicine services continued to actively use them. In addition, a new trend has arisen for the provision of psychological online assistance, the demand for which increased significantly in 2022-2023.^[1]

Market growth by 27% to 46.63 billion rubles

At the end of 2023, the volume of the Russian medical tech market reached 46.63 billion rubles. This is 27% more than the result for the previous year, when the figure was approximately 36.7 billion rubles. Such data are provided in the report of the Smart Rankings agency, which was released on March 12, 2024.

According to the Vedomosti newspaper, the statistics given take into account the total revenue of the 70 largest players in the segment, which includes IT technologies used in healthcare. The main annual growth of the market falls on the telemedicine segment, but a significant share of the medical industry is occupied by software developers.

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The founder of the medical tech startup UnimAlexey Remez says that the indicated figure at 47 billion rubles "is close to reality and may even be slightly more." He believes that the drivers of this market are import substitution, within the framework of which various software products are created, and the rather rapid development of telemedicine. At the same time, emphasizes Remez, it must be borne in mind that "in the case of telemedicine, there is a low base effect." In other words, such technologies as of March 2024 in Russia have limited distribution.

The leader of the Russian medical tech market in 2023, as noted by Adindex, was the center of competence for digitalization health care Tsifromed"," creating digital solutions for Ministry of Health and. Ministry of Digital Development This company increased revenue on an annualized basis by 31% to 13.2 billion rubles. The second place is occupied by "" with Savings health an indicator of 7.8 billion rubles and an increase of 50%. Closes the top three "" with Doctris revenue of about 1.5 billion rubles and an increase of 20% in relation to 2022. Next come "" (Motility an increase of 144% - up to 1.5 billion rubles) and "Aktion" (medicine 13.6% and 1.3 billion rubles).^[2]

Growth of the Russian market in the third quarter by 27% to 10.23 billion rubles

The volume of the Russian medical technology market in the third quarter of 2023 amounted to 10.23 billion rubles, which is 27% more compared to the same period in 2022. Smart Ranking analysts presented such data at the end of December 2023.

As Kommersant writes with reference to the materials, telemedicine is the main driver of the growth of the domestic medical tech market. The income of companies providing remote medical advice services in July-September 2023 reached 3.76 billion rubles, an increase of 50% on an annualized basis. The revenue of telemedicine providers is growing because their services are becoming more and more popular among corporate clients, Smart Ranking notes.

The volume of the Russian medical technology market in the third quarter of 2023 amounted to 10.23 billion rubles

According to analysts, psychotherapy has begun to occupy an important place in the telemedicine segment, but companies are transferring doctors and other specializations to online mode. Experts also note the growing popularity of telemedicine from the Russians who left after the start of the military special operation.

The volume of sales of medical tech devices in Russia in the third quarter of 2023 in Smart Ranking was estimated at 1.7 billion rubles, which is 21% higher than the result of a year ago. The leader of this market is the Motorica company, whose revenue rose 2.8 times, to 362.6 million rubles. The general director of "Motor" Andrei Davidyuk connects the rise of the company's business, including the availability of products against the background of logistics difficulties of foreign manufacturers and the growth of the budget of the Russian Federation for providing citizens with technical means of rehabilitation.

From the materials of Smart Ranking, it also follows that the developers of medical software in the third quarter of 2023 earned 3 billion rubles, which is 15% more than the same period in 2022.^[3]

2022

Market growth 4 times to 15.9 billion rubles

BusinessStat analysts estimated the volume of the Russian medical technology market at 15.9 billion rubles in 2022, which is more than four times higher than in 2018 (3.9 billion rubles). The corresponding study was published in May 2023.

According to experts, the Russian medical tech market was able to grow significantly at the peak of the COVID-19 coronavirus pandemic, and in 2021 it continued to develop at a high pace. At the same time, the growth in demand for technological medical solutions took place in all areas of their use: in the private, commercial and public sectors.

The Russian medical tech market was able to grow significantly at the peak of the coronavirus pandemic

The researchers note that the sanctions imposed on Russia had a negative impact on the medical technology market and led to a significant slowdown in its growth rate. One of the main reasons is the restriction of access to the latest technologies and equipment due to the emerging foreign trade barriers.

The most affected by the sanctions were the high-tech industry, where the main role is played by research and development conducted in partnership with international companies and research institutes.

However, the sanctions could not completely stop the development of the medical tech market. By the end of 2022, the share of domestic solutions reached from 70% to 90%, depending on the medical technology sector. Russian companies from industries such as telemedicine systems and software for hospitals and medical centers will continue to increase their market shares, reducing the share of foreign solutions being implemented.

MedTech solutions provide comprehensive patient care - from early diagnosis to treatment and health monitoring. Russian medical companies are introducing new methods of treatment and diagnostics, developing telemetry and telemedicine, automating the business processes of medical institutions, the report said.^[4]

Market growth by 27.7% to 19.46 billion rubles

The volume of the Russian medical technology market in 2022 reached 19.46 billion rubles, an increase of 27.71% compared to the previous year. Such data were released by Smart Ranking at the end of March 2023.

Telemedicine remains the largest segment of the Russian medical tech market - in 2022 it accounted for more than half of revenue, or about 9.76 billion rubles (an increase of more than 41% compared to 2021). According to experts, the telemedicine segment is "very motley" - it includes both classic telemedicine companies providing remote advice to doctors and services providing digital VHI as a service, as well as online psychotherapy platforms seeking to become the core of the telemedicine system in the b2b segment.

The volume of the Russian medical technology market in 2022 reached 19.46 billion rubles

In second place in terms of sales is the segment of medical devices (share in 2022 - 22.07%). Revenue within the segment for 2022 amounted to 4.3 billion rubles, which is 12% more than a year earlier. The top 3 closes the category of medical and scientific research: its share in the Russian medical tech market in 2022 is 9.93%, which is 1.93 billion rubles, and the growth is more than 25%.

According to analysts, in 2022, most companies faced problems with supply chains, payments, freezing contracts, a shortage of qualified personnel, but these difficulties mostly affected the first half of the year - in the second half of 2022, most companies adapted to the new reality and optimized internal processes.

Telemedicine service "SberZdorovye" is named the leader of Russian medical technologies for 2022. Its revenue amounted to 5.2 billion rubles, surpassing the result of 2021 by 40.5%. The second line is still occupied by the Doctis telemedicine service, whose revenue in 2022 amounted to 1.3 billion rubles and grew year-on-year by 40.9%.

General Director of RT-Doctis (a subsidiary of Doctis and Tsifromed) Sergei Lezhnin notes: despite the fact that in the second quarter the company faced difficulties and reorganized marketing activity, Doctis set a new trend in the market and was the first in Russia to launch remote monitoring of the health of patients with cancer on the Gostelemed platform. Another large project was launched there - remote monitoring of patients with cardiovascular diseases, diabetes, patients with covid, as well as pregnant women, including using medical gadgets.

The third line in the Smart Ranking rating was taken by the online training service for medical workers "Aktion Medicine" - the leader of its segment, whose revenue for the year amounted to 1.2 billion rubles, an increase of 16.2% year-on-year due to institutional changes - the lifting of the moratorium on accreditation of doctors, which caused an explosion in sales.

The leader in growth for the year was a new participant in the rating - startup Budu, part of the Renaissance Insurance group, whose revenue grew by 528.57% over the year and amounted to 616 million rubles, according to Smart Ranking.

Many companies faced the need to cut costs, including in the field of caring for employees. On the other hand, more than half of Russians call the presence of VHIs the second most important factor in choosing a place of work after the amount of remuneration, therefore, in conditions of competition for qualified personnel, our product "shot," said Budu CEO Jeyhun Rakhmetov, adding that in 2022, medical tech companies experienced a shortage of specialists.[5]

2020: Rating of the largest medical tech companies in Russia - Smart Ranking

In July 2021, Smart Ranking and the Atlanta club presented a rating of the largest medical tech companies in Russia. The first place in terms of revenue was taken by SberHealth, and in terms of growth rate - Doctis of the founder of the network of clinics "Mother and Child" Mark Kurzer.

According to RBC with reference to this study, the total revenue of the top 25 market leaders at the end of 2020 reached 10.2 billion rubles against 3.9 billion rubles a year earlier. SberHealth's revenue in 2020 amounted to 2.8 billion rubles, while in 2019 it was measured at 1.7 billion rubles. In second place is the BestDoctor project with revenues that rose even more - from 450 million to 1.7 billion rubles.

The three leaders of the Russian medical tech market were closed by Eidos-Medicine with a result of 713.4 million rubles at the end of 2020. At the same time, in 2019, the company's revenue was higher - 892.5 million rubles. Seven of the ten largest players in terms of revenue last year worked in the telemedicine segment.

Until 2020, there were a number of regulatory barriers that restrained growth, but the pandemic period became a powerful catalyst for the development of telemedicine solutions, says Natalya Polushkina, vice president, executive director of the Skolkovo Foundation's Biomedical Technology Cluster. - Therefore, their appearance in the top lines of the rating is not surprising.

The entire top 10 is as follows:

Smart Rankings experts also named the market leaders in revenue growth from 2018 to 2020. The rating was headed by Doctis, its revenue for two years increased from 3.8 million to 558.6 million rubles (+ 14,600%), BestDoctor's revenue increased from 60 million to 1.7 billion rubles (+ 2733.3%), SberZdorovye was able to increase revenue from 500 million to 2.8 billion rubles (+ 460%).

Commenting on the leadership of the SberZdorovye service, analysts noted that for him the COVID-19 coronavirus pandemic coincided with integration with Sberbank: the company rebranded (previously called DocDoc), introduced SberID and SberRau, launched sales of digital healthcare products through Sber sales channels (b2b and b2c) throughout Russia.

According to the marketing manager of SberHealth Diana Kurganova, in order to meet the needs of people in medical consultations, the company additionally trained and brought to work over 400 doctors who communicated with patients online. The flow of consultations with specialists has doubled in a few weeks, "she added.

The Smart Ranking included private companies whose business belongs specifically to the medical technology market. We are talking about products, services and solutions that are designed to save people's lives and improve their health: these are telemedicine, medical equipment, online doctor's appointment and marketplaces, research processing, monitoring and call systems. At the same time, the list did not include services for ordering and delivering drugs (such as apteka.ru, eapteka.ru).

Data on revenue were obtained through a survey of companies or from financial statements through the Kontur.Focus system. The companies "Genotek," "Atlas," 3D Smile, Exoatlet used data on the revenue of legal entities registered in Russia, therefore, foreign sales may not be taken into account.

As for the growth rating methodology, the relative revenue growth for 2020 compared to 2018 was used as the main indicator of growth. To solve the problem of a low base, a correction factor was added, taking into account also absolute growth, and tied to the median growth of the entire group, which can be regarded as the market average.^[6]

Notes