The two leading players operating in the Iraq healthcare market are Siemens Healthcare and Koninklijke Philips N.V. The collective share of these companies as of 2013 stood at 31.7%. Companies are focusing on collaborative agreements with the government to secure and strengthen their position in the overall market, observes Transparency Market Research in its latest publication. "These players are also aiming at providing rehabilitation programs through their services to help the displaced patients regain a normal life after the treatment," states the lead author of this research report. Thus, diversifying product portfolios and customizing offerings to meet the needs of the patients will be the key business strategies defining the success of these companies.
The research report states that the Iraq healthcare market is expected to represent an opportunity worth US$530.3 mn by the end of 2022 as the market exhibits a CAGR of 7.8% between 2014 and 2022. This market is expected to be driven by the increasing demand for cardiac procedures, as the country is witnessing a surge in the number of patients suffering from cardiovascular disease. Thus, the cardiac procedures segment is expected to rise at a CAGR of 8.3% during the forecast period. The orthopedic procedures segment is also anticipated to be an emerging one as the worn-torn nation limps back to normalcy nursing the wounds of several civilians and soldiers over the course of next few years. The orthopedic procedures segment in the overall market is expected to expand at a CAGR of 7.0% between 2014 and 2022.
War Impels Government to Spend on Healthcare Infrastructure
The long-drawn war in Iraq has impelled the government to spend on building a healthcare infrastructure. To repair the damages to the primary care sector the Government of Iraq allocated US$12 bn for health care expansion in 2014. Such projects will see three specialized cardiac centers, eight public hospitals, multiple primary care centers for children and women, and a hospital for treating cancer and a neurology center as well. Over the forecast period, the country will also have several psychiatric rehabilitation hospitals to treat the patients suffering from traumas of war. Iraq is poised to be a lucrative healthcare market as the Government and international organizations such as WHO are anticipated to invest heavy amounts into rebuilding the country's medical setup.
The high prevalence of non-communicable diseases such as cardiovascular diseases, cancer, hypertension, and diabetes have made a significant contribution towards the growth of the Iraq healthcare market. The market is also anticipated to rise as the increasing revenues from the oil industry will fuel the healthcare market of Iraq. These investments will be channelized towards training medical staff, upgrading medical facilities, and funding a healthcare infrastructure for a better tomorrow.
Poor Banking Systems Hamper Healthcare Infrastructure Funding
However, the overall market is being restrained by the slow pace of infrastructural growth as the poor banking system is unable to fund the projects. The financial instability and the restrictive macroeconomic policies governing the country are likely to hamper the growth of the market as well. Currently, the banking system is still trying to recover from bad debts and losses due to the political tensions and war in the country. Furthermore, as the majority of the population in Iraq does not have a bank account, it is becoming increasingly difficult for banks to recover from the losses and fund infrastructural projects. The growth of this market is also being shadowed by the political unrests that are preventing foreign companies from investing in the Iraq healthcare market. The high levels of corruption, crime, and violence is creating a deterrant to the overall market.
The aforementioned review has been based on Transparency Market Research’s report, titled “Iraq Healthcare Market - Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2022.”
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