Thailand’s healthcare sector is booming, fueled by medical tourism, an aging population and ambitious government initiatives.
Yet few overseas suppliers have an effective strategy to overcome the barriers to market entry and expansion. And those who don’t prepare well risk being shut out by competitors which are already embedded in Thailand’s medical ecosystem.
In this article, I outline the key steps we recommended to a recent delegation of Californian companies which visited to attend the Medical Fair Thailand trade show. But they apply to companies all around the world and are based on our interactions with distributors and buyers of medical equipment throughout the country.
Thailand’s medtech market is on a steep growth curve.
Renowned institutions, including Bumrungrad International Hospital and Phayathai Hospital, are pouring investment into advanced systems to attract international patients. At the same time, Thailand is facing a fundamental demographic shift: 20% of its population is already over 60 and, by 2035, it’s forecast to become a ‘super-aged society’.
Both trends point to sustained demand for innovative technologies, particularly those tailored to elderly care.
The government is also playing a proactive role. Thammasat University, for example, is spearheading the creation of a ‘Medical Valley’ in Pattaya, bringing together state and private players to foster healthcare innovation. And Phuket is being transformed into a global medical tourism hub, with a new international complex due for completion next year.
But Thailand doesn’t produce most of the equipment it needs, opening huge opportunities for the right international players.
Domestic manufacturing remains focused on lower-value, single-use items like syringes and test kits. And Thailand depends on imports for more sophisticated devices, from robotic surgical systems to MRI scanners, X-ray machines, orthopedic implants and high-end dental equipment. In fact, around two-thirds of all medical devices used in the country come from abroad.
The commercial potential is clear, but entering Thailand comes with obstacles.
Regulatory approval is the first and most significant. Every product must be registered with the Thai FDA, typically through a local distributor.
Once in place, the registration is tied to that distributor and cannot be transferred, meaning that a change in Thai partner can set exporters back to the beginning.
Reimbursement dynamics are another issue, shaping market adoption by patients. Inclusion on government reimbursement lists means that a medical device is officially approved for coverage under Thailand’s public health financing schemes.
Adoption by hospitals, on the other hand, is driven by cost, compatibility and compliance considerations. Hospitals remain highly cost-conscious, especially when it comes to single-use or disposable products, and often opt for the cheapest product unless sustainability standards or accreditation requirements compel a different choice.
The upcoming Joint Commission International (JCI) guidelines, for example, will increasingly push hospitals to adopt sustainable products, making compliance an important factor in procurement decisions.
Thailand’s competitive environment adds further complexity.
Chinese and Korean firms are well established in the market, often undercutting on price and offering devices that are broadly compatible across hospital systems.
Entrenched brands enjoy strong reputations, close distributor relationships and years of clinical validation, meaning newcomers need a carefully planned approach to displace them.
At the same time, hospitals are cautious about adopting new technologies that might disrupt established workflows.
Concerns about implementation burdens and training requirements came up repeatedly during our recent trade mission. One hospital dismissed the idea of adopting a new IT platform on the grounds that it could slow operations and create more work for staff.
Distributors, too, raised compatibility limitations – for instance, MR coils that only fit specific scanner models – as significant headaches for those managing diverse portfolios. These barriers reflect the reality that Thailand’s healthcare system prizes reliability and stability as much as innovation.
In addition, international medtech companies must navigate Thailand’s complex distribution landscape.
With around 2,500 distributors, the nation offers no shortage of potential companies to collaborate with. Many of them also extend their reach into neighbouring Laos, Cambodia and Myanmar, making them attractive regional partners. Yet finding the right fit is not straightforward, and choosing the wrong one can cost valuable time and momentum.
Despite these hurdles, the Thai market remains highly attractive for companies which approach it with the right strategy.
Our recent trade mission underlined that success hinges on preparation, patience and the ability to align with domestic priorities.
Regulatory readiness is an obvious starting point, but it must go hand-in-hand with careful partner selection. Distributors with in-house regulatory teams can shorten timelines and smooth the approval process, while also providing the market reach needed for sustainable sales growth.
Timelines are also faster if your device has already been approved in the US, Europe, Japan – or especially in Singapore, whose regulatory weight has recently been elevated – although even then you must allow three to six months for processing.
Pricing requires careful calibration. Competing purely on price is rarely feasible, given the strength of cost-competitive regional rivals. Instead, you should present your products as solutions that save money in the long term by minimizing complications, reducing hospital stays or supporting accreditation requirements.
Sustainability is becoming a particularly important differentiator, and products that can demonstrate environmental or compliance benefits stand a stronger chance of breaking through the price sensitivity barrier.
Hospitals and clinics also need to be persuaded through evidence. Case studies, pilot projects and training programs can provide the confidence administrators and clinicians need to adopt new technologies. Without these, even the most advanced devices risk being overlooked in favor of trusted incumbents.
Investment in education is not optional in Thailand; it is a prerequisite.
In addition, alliances often play a critical role. Working with system integrators, healthcare networks or even manufacturers with complementary technologies can provide vital credibility and accelerate access to end-users. These partnerships not only open doors but reassure hospitals that a new product will be supported within the wider ecosystem.
Thailand, then, is one of Asia’s most dynamic medtech markets. But it’s not an easy one to crack.
Demand is rising, imports are essential and the government’s ambitions are driving the sector forward fast. Yet exporters cannot assume that opportunity will translate into success without careful planning.
Those who develop a clear strategy – one that combines regulatory preparedness, well-chosen distributor partnerships, thoughtful pricing and a commitment to education – will be best placed to succeed.
And, by doing so, they will not only gain access to Thailand’s rapidly expanding healthcare system, but to the broader markets of mainland Southeast Asia.
To discuss the potential of your medtech business in Thailand, contact Lek at kanokthip.tirasretsema@intralinkgroup.com