Medical Equipment and Products Market in Russia in 2023

In 2023, only 23% of the equipment and products needed by the healthcare industry were produced domestically. The domestic market needs the support of the state and companies that will develop innovative solutions and produce equipment that had no analogues in the country before.

What applies to medical devices

According to the order of the Ministry of Health of the Russian Federation (dated June 6, 2012), as amended (from 2014 and 2020), a classification of medical devices was formed. The list includes the following types of medical products.

Table 1. Categories of medical devices and equipment

Dynamics of the Russian market of medical equipment and products

In 2023, the number of government purchases of medical devices and medicines increased to 1.15 million transactions (+7% year—on-year). The total volume of procedures for the purchase of not only drugs and reagents, but also medical equipment and related instruments in value terms amounted to 2.12 trillion rubles (+1.8%). Of these, 950 billion rubles (44.8%) are not for medicines. The total amount of purchases of medical equipment increased by 5% from year to year and amounted to 596 billion rubles. The number of completed transactions for which the purchase of this equipment was carried out also increased (+14%) — up to 399 thousand procedures.

As for Rosstat data on the volume of the Russian market of medical devices, so far there is information only for the first half of 2023. According to these data, the market volume reached 381 billion rubles, of which 320 billion rubles (83%) accounted for public procurement.

Retail sales of medical (and orthopedic) products, then the volume of sales in Russia for the whole of 2023 increased by 6.8% compared to the previous year. It follows from the data of Rosstat. Even taking into account only the inflation rate in Russia for 2023 (+7.42%), it is obvious that the indicator has increased in value terms. And thus, it could exceed the level of 300-310 billion rubles: in 2022, 290.3 billion rubles worth of medical goods were sold in retail.

Graph. 1. Dynamics of retail sales of medical devices and orthopedic products, billion rubles.

Source: Rosstat

According to the Ministry of Industry and Trade, the share of medical equipment of domestic production in 2023 reached 29%, showing an increase over the past few years. However, this is still a fairly low percentage. As for the ratio of imports and exports of Russia, in 2023 the trade balance was -143.4 million units of equipment and tools. Thus, Russia's imports in 2023 definitely exceeded the mark of 143 million goods.

Graph 2. The share of domestic medical equipment, 2021-2023, %

Source: Ministry of Industry and Trade of the Russian Federation

In 2023, according to Rosstat data, 50.3 billion rubles worth of medical equipment was produced in Russia. The calculation took into account devices for radiation, rehabilitation, electrical diagnostic and therapeutic equipment. Over the past five years, the indicator has almost tripled — from 18.5 billion rubles in 2018.

Graph 3. Dynamics of medical equipment production 2018-2023, billion rubles.

Source: Rosstat

The data for the months of 2023 were on average 10-15% higher than the monthly data of the previous year. The volume of medical equipment production gradually increased throughout the year and reached the level of 7.1 billion rubles in December. 

At the same time, in the first quarter of 2024, according to Rosstat, medical equipment worth 9.1 billion rubles was produced — this is more than in the first quarter of 2023, but less than in the other quarters of last year. As of March of this year, equipment accounts for only 0.4 billion rubles, which means either a drop in production due to a shortage of parts and other production problems or due to the cyclical updating of equipment in medical institutions (on average, 3-5 years) or overstating the data for February of this year. 

Import of medical products

Since 2022, the import of foreign medical equipment, mainly from EU countries, has become more difficult. So there is no direct ban on the import of medical products from Western countries, but there are reasons that complicate this process:

• The entry of parts for medical equipment into the category of dual-use goods. And their import into Russia is limited due to sanctions.
• The difficulty of making bank transfers with manufacturers from EU countries;
• The departure of some international transport companies that transported goods in the western direction and, as a result, the loss of used logistics routes.

As already noted, over 143 million units of medical equipment were imported to Russia in 2023 (at least). After it became more difficult to import medical equipment from Western countries, Russia is not only strengthening its import substitution policy, but also striving for new cooperation.

So, in October 2023, Russia and India signed a memorandum of understanding: the Center for the Development of Strategic Partnership between Russia and India and the Association of Indian Medical Equipment Enterprises agreed to jointly develop medical equipment. Also, within the framework of this memorandum, countries can exchange technologies for the production of devices.

The process of increasing domestic production of medical equipment and other products takes time, so Russia is also increasing supplies from alternative importing countries. First of all, we are talking about China, but also about the already mentioned India, and also about Brazil and Iran.

Chinese medical equipment was present on the Russian market even before the complication of relations between Russia and the EU countries, the country began to occupy a more significant market share from 2021. The volume of these supplies is now expected to grow. The volume of the Chinese medical equipment market in 2023 was estimated at about 179 billion US dollars (1.27 trillion RMB), which is 10% more than a year earlier. This means that China continues to increase the production of medical equipment mainly due to an increase in export supplies. However, the volume of supplies to Russia is growing ambiguously.

Graph 4. The volume of Chinese medical products and equipment imported to Russia in 2022-2023.

Source: China Customs

According to the Main Customs Service of the People's Republic of China, 62.28 million units were exported to Russia in 2023. medical and veterinary instruments and devices (USD 56.64 million), 403 X-ray machines of various types (USD9.41 million) and 474.5 thousand units of medical furniture, including operating and dental tables/chairs (USD37.7 million). If we analyze the dynamics over the past three years, the volume of imported furniture for medical purposes has almost tripled over this period of time. Although medical furniture is not a scarce and difficult to produce product for the Russian market. And the number of medical devices and instruments has halved in volume terms, but increased in value terms — from 31.185 to 56.64 million US dollars. The increase in trade with China is primarily hampered by logistical complications. But also the ongoing supplies from European countries, whose medical products are more familiar to the Russian buyer.

The most popular Chinese brands of medical equipment presented on the Russian market:

• Mindray is the largest specialized company in China, which manufactures equipment for monitoring patients and their life support, for laboratory diagnostics and medical imaging systems (for example, anesthesiological and surgical consoles are supplied to Russia);
• Niksy produces diagnostic equipment that is used in intensive care and operating departments;
• "SonoScape" (ultrasound machines);
• Zoncare Bio-medical Electronics (electrocardiographs, as well as ultrasound imaging systems).

Russian production and new domestic developments

By 2022, serial production of some categories of medical equipment had been established in Russia: in particular, X-ray machines, artificial lung ventilation systems, endoscopes, as well as laboratory equipment and sterilization equipment. As noted in the Ministry of Industry and Trade, over 50% of the nomenclature units of medical equipment are produced in Russia. However, there are nomenclatures whose production in Russia has not yet been established. As noted by Denis Manturov, the Minister of Industry and Trade of the Russian Federation, projects are currently being implemented in the country to increase the mass production of 16 types of medical equipment: in particular, electronic radiation therapy systems, cyclotrons, linear accelerators, computed tomographs, MRI equipment, endoscopic ultrasound equipment, as well as consumables for these types of equipment.

In general, in 2023 and 2024, there remains a high proportion of foreign medical equipment in specialized organizations. In addition, it is obvious that the equipment needs maintenance for proper operation. The fact that this is a foreign technique creates difficulties in its maintenance. For example, the share of imported diagnostic equipment in state medical institutions that needs maintenance reaches 80-100%. Such data is provided by Vademecum (information and analytical center on the subject of domestic healthcare). The percentage of worn-out equipment is 10-20%. Therefore, it is necessary to localize the production of the main types of medical equipment in order to continuously provide medical institutions with devices and the ability to service this equipment.

Mainly domestic production of equipment and medical devices is concentrated in several regions. The largest of them for 2023-2024 are: Moscow and St. Petersburg, Tyumen and Nizhny Novgorod regions and the Republic of Bashkortostan.

So, in Moscow, more than 200 enterprises are engaged in the production of medical products. They specialize, in particular, in the production of ventilators, equipment for cardiopulmonary resuscitation, pulse oximeters, first aid kits. In 2023, the volume of production of medical equipment and instruments of the city's enterprises increased by 66% from year to year, the production of surgical materials increased by 25%, diagnostic reagents — by 1.3%. If we talk about individual manufacturing companies in Moscow, then in 2023 Scanner (Technopolis Moscow) supplied 920 units to local clinics and hospitals. ultrasound devices (+72% from year to year).

Research centers are engaged in new developments. Among the novelties, you can find unique materials for medical equipment, and improved models of various types of equipment and smart systems.

The ventilator "Mobivent Oxy"

In December 2023, the Ural Instrument-Making Plant (owned by Radioelectronic Technologies JSC) developed a device for artificial lung ventilation using high-flow oxygen therapy (oxygen supply). It is suitable for patients who can breathe independently and have chronic lung diseases, exacerbations of coronavirus infection and heart diseases in which oxygen transmission to the blood is difficult.

It is worth noting that in December 2023, the Government of the Russian Federation banned the purchase of a number of types of foreign ventilators by state institutions — analogues of which are available in Russia. Before that, they were subject to the "second superfluous" rule: preference at the auction was given to the Russian manufacturer. This decision was made in order to support domestic manufacturers of ventilation systems and begin to actively introduce Russian equipment into specialized institutions. The Ministry of Industry and Trade claims that Russian institutions need 2,700 devices per year, and the capacities of domestic enterprises are capable of producing more than ten times the volume of ventilators. The main competitors of Russian manufacturers are Germany and China.

New safe materials for X-ray machines

In early 2024, scientists at Lomonosov Moscow State University were able to obtain non-toxic chemical compounds (manganese halides). Such compounds are used to convert X-ray radiation into visible radiation. The new samples have an increased density, which reduces the volume of organic components in them, which are harmful to the human body. It is also assumed that the new materials will become a cheaper analogue. It is still unknown how materials for X-ray machines will be introduced into production and use.

Surgical navigation Autopilot and Reviver simulator

The Institute of Innovative Development (IIR) of SamSMU has created an Autopilot surgical navigation system for planning surgical intervention and a VR simulator "ReviVR" for the passive rehabilitation of people with impaired spatial orientation, motor function of the legs, as well as with visual impairments. In 2022, a Mass Production Center was launched at the Institute, due to which developments can immediately go into mass production. Therefore, the production of Autoplan and Reviver systems has been established, and their purchase is available from distributors.

It is worth noting the ReviMotion simulator, which is used to restore the musculoskeletal system of children. AI is used to create an individual approach to motor exercises.

Titanium implant for cervical stabilization

The implant is used for tumors of the cervical spine and developmental pathologies. The implant has been used more than 10 times in 2023. It was developed by the staff of the NMIC of Neurosurgery named after Academician N. N. Burdenko and NMIC of Traumatology and Orthopedics named after Priorova.

Local production of artificial spinal discs, as well as joints, is necessary to maintain an adequate level of production of such medical devices. Until 2022, imported musculoskeletal system implants (mainly from the USA) were actively used in domestic medicine. By 2023, the stock available to Russian medical institutions had been exhausted, so by that time Russia needed to at least partially compensate for the reduction (due to logistical difficulties) in the import of implants and endoprostheses by its own production.

Generator "Rhenium-188"

The device, developed by the NMIC of Radiology of the Ministry of Health of Russia, manufactures drugs for the treatment of metastatic bone lesions and severe arthrosis.

The "smart" orthosis of rehabilitation of the lower extremities

The orthosis is able to analyze muscle signals and report on the work of muscles and the degree of stress on the injured leg. Due to this, the doctor can adjust the individual rehabilitation program of patients. The device can be used to recover from injuries, surgeries, strokes, as well as to improve muscles in patients with neuromuscular diseases.

Technology for unlimited storage of artificial organs

RUDN researchers were able to confirm that cryopreservation is amenable not only to simple biological elements (tissue fragments, eggs, sperm), but also to larger objects, in particular bioengineered organs. With successful further development, a bank of "spare parts" for patients can be created in Russia.

Technology for the diagnosis of ischemic and hemorrhagic stroke

CT scans of the brain are processed by artificial intelligence, which saves time for specialists. CT Brain technology developed by NtechMed was tested at the Center for Diagnostics and Telemedicine of the Moscow government: the reliability of the results was verified using 20 thousand CT scans of patients with diagnosed strokes.

Equipment for recovery of patients after stroke

The Neurolimp device, created within the framework of the SibbioNOC project, allows you to restore cognitive functions, in particular, restore memory in the post-stroke period. The device uses light and sound to affect the brain and stimulates the cerebral cortex with magnetic fields. In the fall of 2023, the device was tested on healthy volunteers. A study on stroke survivors is due to begin this year.

Among other developments, it can also be noted:

• Polymer tips for pipette dispensers (KRET JSC and Rostec Roselectronics) — two companies of the state corporation engaged in import substitution of medical plastic in 2023
• Bioactive intraosseous and skeletal implants of tubular bones
• A robotic complex for processing medical implants to increase their survival in the body (ITMO)

The largest manufacturers

According to Rosstat, 1.9 thousand companies in Russia are engaged in the production of medicines, medical devices and equipment. However, there are not many companies that are actively engaged in expanding the range of manufactured devices and equipment, improving them and offering innovative solutions and solutions for the development of the industry. Here are some of the biggest developers.

According to official statistical data, the Russian market of medical equipment and products is growing from year to year and the need to accelerate the development of local production has so far only had a positive effect on the industry.

The Russian market has all the prospects for development. It will be able to actively develop with the support of the state and the implementation of innovative projects. However, it may turn out that the introduction of domestic developments will not quickly reach the predicted indicators, since Russian manufacturers have to compete with proven foreign developers of equipment and technologies who have not stopped supplying equipment to Russia, but have changed logistics routes and started transporting goods through third countries (in particular, Turkey).

In general, Russia is not currently experiencing a serious crisis in the medical equipment industry: some of the former supplier manufacturers have remained (although the domestic market eventually lost a major global player - Siemens), alternative import options have appeared (China, India, Iran, Korea), and most importantly, domestic manufacturers are working on the serial launch of important products and equipment.

In December 2023, the Ministry of Industry and Trade announced that Russia would develop a plan for the development of the medical industry until 2030. The plan has not yet been publicly presented, but it is expected that if it is followed, it will be possible to more accurately assess the request of the sector and control the priority in the procurement of medical equipment from Russian developers.