Medical Devices Industry and Market Prospects 2012-2022

Thursday 6 September 2012, Amsterdam

A new report predicts that the global medical device market will be worth $339.0bn by 2016. The market generated $266.0bn in 2011, according to Medical Devices Industry and Market Prospects, 2012-2022.

The medical device industry is an attractive and highly profitable industry. Companies in this industry therefore operate in a highly competitive environment and require a high capital expenditure in order to develop innovative products. External factors such as government action, economic stability and regulatory landscape can profoundly influence trends in the medical device industry and therefore determine growth. Despite its being a mature market, the medical device industry is made up of several fast growing sectors which are expected to drive growth in the industry in the next decade.

Rodrigo Gutierrez Gamboa, healthcare industry analyst says: “The medical device industry will experience growth in the next decade, primarily due to a global aging population and an increase in the prevalence of chronic diseases, particularly in emerging markets like China and India. The expected approval of innovative devices in fast growing sectors of the market, such as the neurological sector, will also help drive growth in the coming years. However, continued economic weakness in major markets of the industry and the introduction of healthcare reforms, such as the US medical device excise tax, will continue to be the major constraints to further growth in the industry”.

Research suggests that the global medical device market will benefit from extensive research particularly in the cardiology and neurological sectors. This will result in the launch of innovative products for which there is a strong market need and will therefore drive the overall market forward. The increase in wealth in emerging markets like China and India will result in lifestyle changes that are expected to increase the prevalence of chronic diseases in these countries. Furthermore, the fast-expanding middle class in emerging economies will result in a higher proportion of the population being able to afford devices that were previously too expensive. Efforts by organisations, such as the International Medical Device Regulators Forum, to harmonise the approval process for medical devices across major international markets will also help drive the market forward as companies will be further encouraged to expand their operations abroad.