# Japan’s Medical Device Market Poised to Become the World’s Third Largest Amid Aging Population Trends

- Link: https://www.thailand-business-news.com/health/205724-japans-medical-devices-market-set-to-rank-third-worldwide-due-to-aging-population
- Published: 2025-04-09T09:10:00+07:00
- Author: News Desk

**Japan’s medical devices market will grow driven by its aging population, reaching
JPY4.9tn by 2029. Despite political uncertainty, strong healthcare priorities will
support growth and innovation.**

**Key View**

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 * Japan’s medical devices market growth will continue to be driven by the country’s
   large ageing population amid ongoing political uncertainty.
 * By 2029, we project that Japan’s medical device market will be the third largest
   globally, overtaking Germany.
 * Japan’s strong medical device trade with the US highlights potential risks, though
   it is unlikely that the US will target Japan’s medical device sector with tariffs.
 * That said, Japan will aim to enhance its regional medical device trade by diversifying
   its supply chains. 

**Japan’s medical devices market growth will continue to be driven by the country’s
large ageing population amid ongoing political uncertainty. **We forecast that Japan’s
medical devices market will grow at a 2024-2029 compound annual growth rate (CAGR)
of 4.4% in local currency terms and 9.4% in US dollar terms, reaching a value of
JPY4.9tn (USD42.9bn) by 2029. Japan’s large and growing elderly population with 
increasing demand for chronic disease and long-term care will continue to drive 
market growth. Healthcare innovation and the adoption of advanced medical technologies
will be supported by Japan’s highly developed healthcare system. We highlight moderate
risks to the market in the near term stemming from political instability and elevated
inflation. Japan’s minority-led Liberal Democratic Party-Komeito government and 
the possibility of the LDP-Komeito coalition losing its majority in the July Upper
House Election could lead to the replacement of Prime Minister Shigeru Ishiba. However,
we do not foresee this having a significant impact on Japan’s medical device market
due to Japan’s robust regulatory framework and prioriritsation of healthcare to 
tackle increasing demographic challenges, which will continue regardless of governmental
changes. 

Japan’s medical devices market is poised to become the third largest globally, driven
largely by its aging population. With a significant portion of the population over
the age of 65, there is an increasing demand for advanced medical technologies that
cater to chronic health conditions. This demographic shift is pushing healthcare
providers to adopt innovative solutions, thereby amplifying the market’s growth 
potential.

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As the government emphasizes the importance of healthcare technology, investment
in research and development has surged. The rise of digital health technologies,
including telemedicine and remote monitoring devices, has transformed traditional
healthcare delivery models. This shift is not only improving patient outcomes but
also driving efficiency within healthcare systems, making it crucial for companies
to adapt and innovate to meet changing patient needs.

Furthermore, Japan’s well-established regulatory framework supports the swift approval
of medical devices, positioning the country as a leader in the global market. As
local and international companies vie for a share of this lucrative market, Japan
is expected to remain at the forefront of medical technology advancements, ultimately
benefiting its aging population and beyond.
[Read More](https://www.fitchsolutions.com/bmi/medical-devices/japans-medical-devices-market-become-third-largest-globally-population-ages-25-03-2025)