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Medical device market is estimated to record a revenue growth to US$ 625.3 Bn by 2027 – an increase at a CAGR (Compounded annual growth rate) of 6.3% from 2021. Despite an expected decline due to significant impact of COVID-19 on global supply chain, the market witnessed an increased demand of medical devices during 2020-2021. Diagnostic tests, ventilators, gloves, masks, sterilizers, gowns and gloves are some major demands in the market during peak times of COVID-19. In the year 2021, the medical device market generated a revenue of US$ 434.2 Bn.
A medical device is an apparatus, instrument, appliance, or machine that is used to prevent, diagnose, treat, monitor, or alleviate disease. These devices benefit patients in a variety of ways, including assisting medical care providers in the diagnosis and treatment of patients, as well as assisting patients in improving their quality of life. A medical device serves an important role in detecting, measuring, restoring, and modifying the structure or function of the body as a result of health issues or chronic medical disorders.
Analyst Speaks: There are more than 6,500 medical device companies in the U.S., 18,000+ in China and 3,000+ in India. The market caps of medical device industry show major shareholding by large and mega cap companies, followed by micro-cap companies and least shareholding by mid-cap and small cap companies in the industry. The global medical device industry is huge and is growing at constant pace both in terms of value and volume.
Cardiology holds the largest share of 18.9% in the application segment and accounted nearly US$ 77.1 billion and is predicted to generate around US$ 121.5 billion by 2027. The increased global prevalence of coronary heart disorders, such as stroke and cardiomyopathy, which generate a global burden of cardiac mortality, is one of the leading reasons contributing in overall growth of the cardiology devices segment. According to an article published in the US Pharmacist in February 2020 titled "Prevalence of Cardiovascular Disease in Adults," 30.3 million adults (12.1%) in the United States were diagnosed with cardiovascular disorders in 2018.
Diagnostic devices used to examine specimens derived from the human body, such as blood, tissues, and other body fluids, to detect diseases, conditions, and infections, have intrigued the interest of the healthcare ecosystem, holding the largest market share among all other medical devices, due to their high demand, accuracy, and utility.
The increased frequency of chronic conditions makes people more susceptible to the infectious viruses like coronavirus. As a result, there is an increased demand for medical equipment used in the diagnosis, prognosis, and treatment of ailments. With multiple players planning to provide new technologies and smart medical devices, industry has seen a sharp rise in investment from the number of players across the supply chain. Some of the key players are Medtronic, Johnson & Johnson, Abbott, GE Healthcare, BD and Philips
Where is the market Heading?
Diagnostic equipment, patient aids, and other medical devices account for more than half of all medical products in the market. Other medical devices, such as wheelchairs, UV ray machines, and surgical sterilisers plays an important role in the healthcare business. The increased adoption of wheelchair at homes by disabled and elderly people, rising demand of active wheelchairs by patients with spinal cord injuries, persons with physical disabilities, and the elderly, is a major factor driving the demand for highly advanced wheelchairs in the market. For instance, Sunrise Medical has unveiled the Quickie Q300 M Mini, a wheelchair that can fit through a tight doorway, navigate complex living spaces, and navigate crowded restaurants.
Furthermore, 3D printing in manufacturing enhances the performance of surgical equipment such as haemostats and forceps, which is expected to boost the market growth. Medical devices are benefiting from the medical technology industry's strong growth. As new technologies such as artificial intelligence (AI) are integrated to aid in enhanced diagnosis. AI also helps healthcare workers to monitor patients remotely via sensors and automate therapy delivery using mobile apps. In addition, the use of Big Data analytics to manage, access, analyse, and process new medical data in order to create effective medical devices is predicted to drive the overall market growth.
The rising trend for in-house health monitoring such as heartbeat, blood sugar level, and many other tests is expected to enhance the market growth in the future years- hence justifying the CAGR of 7.7% to the household category.
Increasing usage of various medical equipment in formal health care settings benefitted from the miniaturisation of various components, such as microprocessors and nanotechnology. Some of the devices envisioned are embedded in household objects, such as a biosensing chip in a toothbrush that checks blood sugar; smart fibre bandages that detect bacteria or a virus in a wound and recommend appropriate treatment; smart T-shirts that monitor the wearer's vital signs in real time; and heads-up displays for glasses that display information on the wearer's vital signs.
Due to rising per capita income, high expenditure on healthcare infrastructure, and a rapid increase in the region's ageing population, the Asia-Pacific region will grow at the highest CAGR of 7.1% throughout the forecast period. The region is also becoming known as a key source of product technology innovation, as well as for its distinct healthcare ecosystem and innovative business strategies. Among the countries of the region, Japan holds the second largest share with 25% in 2020 and is expected to have 40% population above 65 years’ age by 2050.
With the presence of numerous players round the globe, many initiatives have been taken by companies to maintain their position in this market. For instance, Medtronic Plc launched a smart insulin pen with the integration of their glucose monitoring system (CGM) in December 2020. The FDA-approved InPen will work with Medtronic's Guardian Connect continuous glucose monitoring device, allowing diabetics who receive multiple injections per day to check insulin dosages and blood sugar levels in real time using a single smartphone app. Similarly, in Feb 2021, Royal Philips announced the launch of Medical Tablet in North America, Europe and Japan, the Medical Tablet will provide remote access to patient data and will allow health providers to improve workflows.
Despite of various driving factors, global medical device market faces several barriers. The industry has undergone substantial developments in terms of new technology and design during the last decade. However, high cost of these devices, which includes high acquisition and maintenance costs, results in an increased overall cost of ownership. People with low income in developing countries cannot afford high-priced medical technologies, hence limiting the market expansion in emerging economies.
One of the major concerns in the medical device industry is low reimbursement. In some less developed Asian countries, such as Indonesia, reimbursement is limited or non-existent, resulting in increased financial burden. Unfavorable reimbursement policies affect the company’s revenue due to unaffordability or low adoption of such devices, which is expected to hinder the overall growth of the global medical devices market.
Following the recent breakout of the COVID-19 pandemic, the global medical device industry is predicted to rise by approximately 5.0% in 2020. The outbreak wreaked havoc on the worldwide economy. Manufacturing facilities saw a decline in output capacity as a result of the lockdown and rigorous controls by governments during pandemics to stop spread of virus.
Developing economies offer lucrative opportunities for companies to expand their businesses. Several key players contributing to the market are:
The report provides in-depth analysis for the Global Medical Device Market – Industry Dynamics, Market Size, and Opportunity Forecast to 2027, based on following segmentations:
Segmentation Overview of the Global Medical Device Market
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