Published on: December 11, 2019
Medical devices refer to all devices used for medical purposes. Medical devices include imaging equipment, dental equipment, surgical equipment and neurology devices, among many others. We have categorized the global medical device market as a part of the global health care equipment market. The health care equipment market covers products and companies engaged in research and development (R&D) of a variety of product categories, including capital equipment, instruments, implants, accessories, and consumables that are used for the diagnosis, monitoring, and treatment of various diseases.
The rapidly growing elderly population, prevalence of chronic diseases, focus on improving healthcare facilities in emerging countries, and the integration of advanced technologies in the manufacture of medical devices are the major factors that are driving the medical device market. It is a highly regulated market with multiple regulatory bodies and standards mandated for medical device manufacturers to ensure efficient and reliable healthcare. Hence, frequent regulatory changes can impact market growth by increasing production costs for medical device manufacturers. The medical device market is estimated at over USD 420 billion in 2019 and is expected to witness a growth rate above 5% during the forecast period. Based on function, therapeutic and surgical devices will dominate the market during the forecast period, while based on type, in-vitro diagnostics will lead the market.
Based on geography, the North American region dominates the global landscape. The dominance of North America is driven by multiple factors including the presence of prominent medical device manufactures, the rising popularity of mobile health, and high R&D expenditure towards new product developments. APAC, on the other hand, will grow at a higher growth rate, with the rising investments toward healthcare infrastructure, government initiatives, and rising healthcare awareness.
Global medical device market can be segmented into the following:
Many factors are expected to drive growth in the global medical device market during the forecast period. Our analysis identifies the following factors to be driving the growth in the medical device market:
Procurement and maintenance of medical equipment account for a significant part of a health care organization’s capital and operational expenses. The growing technological innovation has enabled a paradigm shift in cost as well as manageability of medical equipment. For instance, the advent of wearable devices has made patient monitoring much simpler and cost-effective. The popularity of EHRs, wireless devices, and connected healthcare devices has significantly improved the functions and capabilities of medical devices. With the rising Internet penetration, especially in developing economies such as China and India, mobile and telehealth are expected to see increased adoptions. Further, IoT enabled medical devices are also expected to lead the next wave of growth for the medical equipment market. These equipment have an IT interface that offers access through an online platform, which has the potential to reduce operational costs for service providers and benefit the patients as well.
Globally, chronic diseases, such as cardiovascular diseases (CVDs), leukaemia, kidney disorders, neurological diseases, and cancer, account for a significant number of deaths annually. It is estimated that such chronic diseases result in nearly 40 million deaths per year, with CVDs and cancer accounting for the major portion of the chronic disease-related deaths. Companies are investing in more advanced technologies and R&D toward preventive healthcare. In recent years, therapeutic apheresis process has been developed as one of the important treatment options for life-threatening chronic diseases. LDL is one of the major factors that cause CVDs. It causes the deposition of fatty acids in arteries, which can lead to their blockage or reduce the flow of blood and oxygen in the heart. The prevalence of heart diseases has increased across the globe.
With growing age, the human body tends to lose its immunity and self-healing power, which makes it more susceptible to various chronic indications such as diabetes, orthopaedic disorders, and gastrointestinal issues. For instance, only in the US, people above the age of 65 are expected to double to 95 million by 2060. As the proportion of this aging population has been significantly rising, the health care market has witnessed a strong demand for diagnosis-, assistance-, maintenance-, and treatment-related equipment. Thus, all these factors have the potential to accelerate the growth of the medical device market.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
The lack of access to quality medical devices and equipment is a major challenge, especially in developing nations. Further it is imperative that the government ensures regulations against faulty medical devices. Various regulations governed by state and foreign government agencies such as the Food and Drug Administration (FDA) and the CMS of the US Department of Health and Human Services have been ratified over the past. These regulations and processes are tedious and costly for device manufacturers. Further, the regulations differ from country to country with different processes, further adding to the cost and time to market for a medical device manufacturer.
The medical device market witnesses frequent product recalls on account of safety or functionality issues. There are instances where the medical devices must be checked, adjusted, or fixed to ensure that it does not fail unexpectedly or violate regulatory guidelines. The medical device manufacturers are also required to recall their devices in case of malfunctions or errors that can seriously affect a patient. In the US, the Food and Drug Administration (FDA) is responsible for updating the Medical Device Recall Database after a company has initiated a correction or removal of its equipment. For instance, in February 2019, Medtronic, recalled its dual-chamber implantable pulse generators, due to the possibility of a software error that can result in a lack of pacing. Such product recalls cause a major setback to the manufacturers' financials and hence hamper the growth of the medical device market.
The availability of counterfeit medical devices and healthcare supplies is a grave problem across the world. Such products can harm both patients and the reputation of original manufacturers. Many countries, especially emerging economies, do not have the requisite regulations to keep a check on counterfeit products entering the market. Some developed countries have regulations for combating the development and spread of counterfeit products. The World Health Organization (WHO) is taking initiatives to create awareness of this menace. However, the availability of counterfeit medical devices and supplies continues to be a major challenge for the healthcare equipment industry.
Our reports on the global medical device market cover several large and small vendors active in the market including GE Healthcare, Medtronic PLC, F. Hoffmann-La Roche Ltd., Stryker Corporation, Siemens Healthcare, and Abbott Laboratories.
Market investment, strategic partnership, and introduction of new products are some of the strategies adopted the companies in the global medical device market.
Following are a few of the major developments in the market:
Backed with competitive intelligence and benchmarking, our medical device market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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