# Thailand’s Medical Device Market Faces Challenges Due to Trade Uncertainty and Political Instability

- Link: https://www.thailand-business-news.com/health/235601-thailands-medical-device-market-faces-challenges-due-to-trade-uncertainty-and-political-instability
- Published: 2025-07-28T11:15:00+07:00
- Author: News Desk

**Thailand’s medical device market forecast has been revised down to a 6.2% CAGR
due to US tariff uncertainties and political instability, impacting investment and
competitiveness. Sales may reach THB109.2bn by 2029.**

Thailand’s medical device market is also facing challenges from regulatory hurdles
and fluctuating currency exchange rates, which could further strain growth projections.
Despite these setbacks, the market is expected to remain resilient, driven by rising
healthcare demands, an aging population, and advancements in medical technology.
Key areas of growth may include diagnostic imaging, surgical instruments, and home
healthcare devices, as providers adapt to evolving patient needs and seek cost-effective
solutions.

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### Key View

 * We have revised down Thailand’s medical device market forecast to reflect ongoing
   trade uncertainty, particularly related to US tariffs, as well as persistent 
   political instability.
 * Thailand’s political environment will continue to heighten market uncertainty
   and could deter investment from multinational medical device manufacturers.
 * Despite current challenges, Thailand is expected to maintain its position as 
   a leading medical device producer in the ASEAN region.

**We have revised down Thailand’s medical device market forecast, reflecting the
impact of US tariff uncertainty and persistent political instability.** We now project
the market to grow at a 2024-2029 compound annual growth rate (CAGR) of 6.2% in 
local currency and 4.7% in US dollar terms, compared to previous projections of 
6.9% and 5.4% respectively. By 2029, market sales are expected to reach THB109.2bn(
USD2.8bn), with consumables, diagnostic imaging and other devices making up the 
largest shares. As of July 2025, the US government maintained a 36% tariff rate 
on Thai exports, following President Donald Trump’s decision to extend the deadline
for tariff negotiations to August 1. While our Country Risk team believes Thai policymakers
may ultimately be able to secure a reduction of the reciprocal tariff rate, uncertainty
remains and real GDP growth is still forecast to slow sharply. In the meantime, 
tariffs will increase export costs and reduce the competitiveness of Thai products
in the US market, which accounts for a quarter of Thailand’s medical device exports.
This challenging trade environment, combined with ongoing domestic political instability,
is expected to weigh on market expansion over our forecast period.

Thailand’s medical device market, once projected for robust growth, is facing a 
downward revision due to rising trade uncertainties and ongoing political instability.
As a key player in Southeast Asia, Thailand’s healthcare sector, particularly medical
devices, has drawn interest from both local and international investors. However,
recent shifts in trade policies and regional tensions have instigated caution, leading
to a reevaluation of market forecasts.

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Political instability has further exacerbated the situation, with ongoing protests
and governmental changes creating an unpredictable business environment. This uncertainty
has led to delays in regulatory approvals and slowed innovation, hindering the inflow
of new technology and investment critical for market development. Companies remain
wary, causing a ripple effect on production and distribution channels.

Despite these challenges, there remains potential for recovery. If the political
landscape stabilizes and trade agreements are strengthened, Thailand could regain
its footing as a regional medical device hub. Stakeholders must navigate these hurdles
strategically to unlock future growth opportunities.
[Read More](https://www.fitchsolutions.com/bmi/medical-devices/thailands-medical-device-market-revised-down-due-trade-uncertainty-and-ongoing-political-instability-18-07-2025)