Healthcare & Life Sciences - Industry - South America Market, Share and Trends 2023-2028

Summary of Healthcare & Life Sciences

The South American healthcare market was valued at around $ 702 billion in 2023 and is projected to grow at a CAGR of over 3.45 % through 2029 to exceed $ 861.05 billion. However— health infrastructure and access to the latest treatments, devices and drugs remains a key challenge. Import dependence is over 75% for pharmaceuticals and over 90% for high-tech medical devices.

Key drivers shaping the market include: aging populations, rise of chronic diseases, investments into digital health infrastructure and regulatory reforms to achieve universal healthcare coverage. While cardiovascular diseases, cancer and respiratory conditions are major morbidity causes, the burden of chronic lifestyle diseases like diabetes and obesity is rising fast with changing lifestyles.

Brazil and Argentina— are the largest healthcare markets, together accounting for over 60% regional spend. Other key markets are – Colombia, Chile and Peru which have seen rapid growth in recent years.

Most South American healthcare markets are working to improve access and quality of care through public-private partnerships. Use of telemedicine and mHealth is also rising to reach underserved populations.

As such governments are trying to catalyze domestic life sciences manufacturing and R&D through tax incentives, special economic zones, and regulatory reforms.

Recent Trends and Insights

The incidence of chronic lifestyle diseases like heart disease, diabetes, cancer is rising rapidly with sedentary lifestyles and changing diets. This is increasing demand for screening, monitoring and treatment.

Many countries like— Brazil, Argentina, Peru— are working to provide their citizens with essential quality healthcare through regulatory reforms in public and private delivery systems.

COVID-19 led to rapid telemedicine growth, with the market projected to expand at over 15% CAGR from 2022-2027 across South America. Key services are – online consultations, mHealth apps, remote diagnostics.

South America relies heavily on imported medicines with import dependence over 75%. Countries are trying to catalyze domestic production through incentives for R&D, special economic zones, easier regulations to attract investments.

Regionally accredited hospitals and skilled doctors combined with lower costs than the US, are driving medical travel growth. Key medical tourism destinations are – Brazil, Mexico, Costa Rica, Colombia. Outbound medical tourism to the US is also rising.

Startups in digital health, precision medicine, big data analytics are attracting record investments– signaling fast growth ahead. Over 150+ health tech startups in S. America have raised USD 1 billion since the past decade.

Product Insights

The South American pharmaceuticals market is expected to grow at 4-6% CAGR through 2025 to around USD 80-90 billion. Key growth drivers are the rising chronic disease incidence and regulatory reforms to expand access.

While most countries still rely largely on imports for medicines, governments are trying to catalyze domestic manufacturing to substitute imports and lower costs. Leading pharma categories include: cardiovascular, oncology and anti-diabetes medicines. Prescription volumes are also rising for neurological drugs, orphan drugs and biosimilars.

The medical devices market in South America is forecast to grow at 6-8% CAGR to exceed USD 10 billion by 2026— driven by demand for diagnostic imaging equipment, patient monitoring systems, and devices to treat chronic diseases.

Orthopedics, cardiovascular devices, and patient aids like – wheelchairs – reflect growth opportunities as populations age. Imports dominate but local production is rising. Key services are online doctor consultations, chronic disease monitoring, e-pharmacies and diagnostics support. Brazil and Mexico lead adoption.

The South American telemedicine market is projected to grow at over 15% annually through 2027, driven by investments into virtual care infrastructure and adoption of mHealth apps to improve access to care.

Key Companies

Some major players within this vast domain of industry are

• Grupo Beto
• Cenexa
• Cuernavaca Farmacêutica
• Dado Group
• Ayurgen
• Biosearch
• Bioenergia
• Desertoroy
• Imbrease
• Zeneca

Regional Analysis

Brazil dominates regional healthcare spend. The market is transforming through regulatory reforms to achieve universal coverage. Telemedicine adoption is high to expand care access. Domestic pharma production incentives also exist.

Mexico was the first country in the region to implement national universal healthcare policy. It is a leading medical tourism destination due to quality infrastructure. The digital health market is also fast growing.

Argentina has the second largest pharma market and robust health tech startup ecosystem. But currency volatility poses business challenges. Market growth will likely accelerate with macroeconomic stabilization.

Chile and Peru have developed strong healthcare and insurance frameworks. They present growth opportunities in telehealth, health tech, medical devices and contract research markets.

South America’s health and fitness club market is also highly competitive. The leading players are expansively concentrating on factors that include: membership prices, additional services, like nutritional programs and spa services and marketing activities; in order to retain their existing customers and to gain a competitive advantage in the market.

Market Segmentation

By Type:

• Pharmaceuticals
• Medical Devices
• Healthcare IT
• Diagnostics
• Biotechnology

By End User:

• Hospitals and Clinics
• Research Laboratories
• Diagnostic Centers
• Others

By Enterprise Size:

• Large Enterprises
• SMEs

By Countries:

• Brazil
• Argentina
• Columbia

Our Methodology

We have offered a well-founded review of the regional South American healthcare and life sciences market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.