PR Newswire01.31.22
Increasing demand for minimally invasive treatments and rising chronic disease cases will help drive a 6.3 percent annual growth rate in the global medical device market over the next five years, according to a report published ty Astute Analytica. Data show the market reaching $625.3 billion in value by 2027.
The emergence of new and hassle-free home monitoring medical devices and increasing geriatric population are other factors driving the market. Various countries worldwide have a population that is primarily made up of the elderly (e.g., Japan). The aging population requires long-term care, thus driving the development of new medical devices for healthcare. According to the World Health Organization, the number of individuals aged 60 and more was around 900 million in 2015, and it is expected to reach nearly 2 billion in 2050, with the majority of the rise occurring in developing nations. Between 2015 and 2050, the share of the population aged 60 and up will almost double, going from 12 percent to 22 percent. About 80 percent of the world's elderly will reside in low- and middle-income nations by 2050.
Chronic diseases are one of the most common and expensive health problems in the United States. Nearly half of all Americans have at least one chronic disease and the number is rising. Cancer, diabetes, hypertension, stroke, heart disease, respiratory disorders, arthritis, obesity, and oral diseases are all chronic diseases that can lead to hospitalization and long-term impairment, leading to an upsurge in medical device market.
However, the high cost of medical devices and reimbursement issues associated with medical device will somewhat impede the market's growth, the report predicts. In many countries, reimbursement rates are determined by pre-determined formulas that are applied to processes or types of devices rather than by the technology or features of the individual manufacturer. This hinders businesses from investing in innovative technologies that can help them save money and improve their results in the long run. The reimbursement procedure for medical equipment is one of the most complicated and opaque processes that stifles medical device innovation. Many people from various countries are involved in the process and contact with manufacturers. Reimbursement choices are frequently ambiguous, time-consuming, and opaque. Manufacturers in various nations confront considerable problems in this area.
The emergence of 3D printing in the healthcare business seems to have had a tremendous impact on the medical device industry. It uses a variety of technologies to quickly build complicated structures, resulting in a surge in advanced medical device manufacture. This is crucial for orthopaedic implant applications because it enables for the development of long-lasting, high-quality, and optimal-fit implants with increased performance and flexibility.
The market will grow as new technologies like artificial intelligence (AI) are integrated to help diagnose diseases. AI also helps healthcare workers to monitor patients remotely via sensors and automate therapy delivery using mobile apps. Significant advancements in new technologies such as smart sensors, smart gadgets, and other lightweight communication devices are driving medical equipment that create data into care pathways, forging alliances with IoMT systems. These advancements in biological signal monitoring and disease identification without the use of humans are helping healthcare companies improve patient outcomes, reduce costs, and increase efficiency. Physicians and medical practitioners will have real-time access to the device, which will help to reduce errors, due to several major trends such as the introduction of technologically advanced smart medical devices and the integration of contemporary Bluetooth technology with smart medical devices. Dexcom Inc., for example, announced the release of the Dexcom G6 CGM System in April 2020, which is accessible for remote patient monitoring in hospitals.
Sensors and medical equipment connected to 5G have near-zero latency, allowing them to gather and transfer data almost instantly with improved patient monitoring and patient outcomes. The benefits of combining 5G, healthcare, and robotics are already being considered by futurists. When it comes to medical device innovation, Medtronic, one of the world's top medical technology companies, has already released its next-generation patient monitoring system for pacemakers. Pacemakers can be linked to smartphone-based mobile apps that patients can better understand and use if they are enabled with Bluetooth technology. That, in turn, will improve remote monitoring, and, as a result, patient outcomes.
Geographically, the market for medical devices is divided into five regions: North America, Europe, Asia Pacific, South America, and the Middle East and Africa (MEA). In 2020, North America hold the largest share in the global market, and this dominance is predicted to continue during the forecast period. Increased use of innovative medical device technologies, growing digitalization of medical devices and increased emphasis on improving treatment results, are all driving market expansion in the area.
In the United States, there are more than 6,500 medical device companies, the majority of which are small and medium-sized enterprises (SMEs). Microelectronics, telecommunications, instrumentation, biotechnology, and software development are just a few of the fields where the medical device business relies on the country's competitive advantage. Collaborations have led to recent advances including stent technologies, neuro-stimulators, robotic assistance, biomarkers, and implantable electronic devices. The industry's future growth is assured, as it is driven by innovation and the constant search for improved ways to cure or diagnose medical conditions.
During the forecast period, however, the Asia Pacific is expected to grow at a CAGR of 7.1 percent, with China being the largest part in the region's economy, accounting for more than half of all exports in 2020, followed by Japan. The market for medical devices in Asia Pacific is positioned for robust development, owing to rising income levels, increased private sector investment, and government incentives.
Major players competing in the global medical device market include 3M Co., Abbott Laboratories, Allergan Inc., Baxter International Inc., Bayer, Becton, Dickinson and Co., Boston Scientific Corp., Cardinal Health Inc., Cryolife Inc., Danaher, Depuy Synthes, Endologix Inc., Essilor International SA, Fresenius Medical Care AG & Co. KGAA, GE Healthcare, Getinge Ab, Johnson Johnson, Koninklijke Philips NV, Medtronic Inc., Novartis AG, Olympus Corp., Roche Diagnostics, Siemens Healthineers, Smith+Nephew PLC, Smiths Medical, Stryker Corp., Terumo Corp., Thermo Fisher Scientific, and Zimmer Biomet Holdings Inc. Significant contribution of companies in the market growth act as economic pillars to sustain the market's expansion. For instance, in June 2021, life sciences investor Novo Holdings acquired BBI Group from Exponent for more than $463 million (£400 million). BBI Group is a supplier of products and services to the global diagnostics and life sciences industries.
The patient monitoring devices segment holds largest compound annual growth rate (CAGR) of 6.8 percent in the medtech market owing to its easy-to-use feature, while the consumables segment, syringes, needles and catheters held more than half of the market share in 2020.
Similarly, cardiology in the application segment held a major share of 18.9 percent in 2020 and household segment among all other end users holds highest CAGR of 7.7 percent in the global medical devices market due to rising trend for in-house health monitoring.
The emergence of new and hassle-free home monitoring medical devices and increasing geriatric population are other factors driving the market. Various countries worldwide have a population that is primarily made up of the elderly (e.g., Japan). The aging population requires long-term care, thus driving the development of new medical devices for healthcare. According to the World Health Organization, the number of individuals aged 60 and more was around 900 million in 2015, and it is expected to reach nearly 2 billion in 2050, with the majority of the rise occurring in developing nations. Between 2015 and 2050, the share of the population aged 60 and up will almost double, going from 12 percent to 22 percent. About 80 percent of the world's elderly will reside in low- and middle-income nations by 2050.
Chronic diseases are one of the most common and expensive health problems in the United States. Nearly half of all Americans have at least one chronic disease and the number is rising. Cancer, diabetes, hypertension, stroke, heart disease, respiratory disorders, arthritis, obesity, and oral diseases are all chronic diseases that can lead to hospitalization and long-term impairment, leading to an upsurge in medical device market.
However, the high cost of medical devices and reimbursement issues associated with medical device will somewhat impede the market's growth, the report predicts. In many countries, reimbursement rates are determined by pre-determined formulas that are applied to processes or types of devices rather than by the technology or features of the individual manufacturer. This hinders businesses from investing in innovative technologies that can help them save money and improve their results in the long run. The reimbursement procedure for medical equipment is one of the most complicated and opaque processes that stifles medical device innovation. Many people from various countries are involved in the process and contact with manufacturers. Reimbursement choices are frequently ambiguous, time-consuming, and opaque. Manufacturers in various nations confront considerable problems in this area.
The emergence of 3D printing in the healthcare business seems to have had a tremendous impact on the medical device industry. It uses a variety of technologies to quickly build complicated structures, resulting in a surge in advanced medical device manufacture. This is crucial for orthopaedic implant applications because it enables for the development of long-lasting, high-quality, and optimal-fit implants with increased performance and flexibility.
The market will grow as new technologies like artificial intelligence (AI) are integrated to help diagnose diseases. AI also helps healthcare workers to monitor patients remotely via sensors and automate therapy delivery using mobile apps. Significant advancements in new technologies such as smart sensors, smart gadgets, and other lightweight communication devices are driving medical equipment that create data into care pathways, forging alliances with IoMT systems. These advancements in biological signal monitoring and disease identification without the use of humans are helping healthcare companies improve patient outcomes, reduce costs, and increase efficiency. Physicians and medical practitioners will have real-time access to the device, which will help to reduce errors, due to several major trends such as the introduction of technologically advanced smart medical devices and the integration of contemporary Bluetooth technology with smart medical devices. Dexcom Inc., for example, announced the release of the Dexcom G6 CGM System in April 2020, which is accessible for remote patient monitoring in hospitals.
Sensors and medical equipment connected to 5G have near-zero latency, allowing them to gather and transfer data almost instantly with improved patient monitoring and patient outcomes. The benefits of combining 5G, healthcare, and robotics are already being considered by futurists. When it comes to medical device innovation, Medtronic, one of the world's top medical technology companies, has already released its next-generation patient monitoring system for pacemakers. Pacemakers can be linked to smartphone-based mobile apps that patients can better understand and use if they are enabled with Bluetooth technology. That, in turn, will improve remote monitoring, and, as a result, patient outcomes.
Geographically, the market for medical devices is divided into five regions: North America, Europe, Asia Pacific, South America, and the Middle East and Africa (MEA). In 2020, North America hold the largest share in the global market, and this dominance is predicted to continue during the forecast period. Increased use of innovative medical device technologies, growing digitalization of medical devices and increased emphasis on improving treatment results, are all driving market expansion in the area.
In the United States, there are more than 6,500 medical device companies, the majority of which are small and medium-sized enterprises (SMEs). Microelectronics, telecommunications, instrumentation, biotechnology, and software development are just a few of the fields where the medical device business relies on the country's competitive advantage. Collaborations have led to recent advances including stent technologies, neuro-stimulators, robotic assistance, biomarkers, and implantable electronic devices. The industry's future growth is assured, as it is driven by innovation and the constant search for improved ways to cure or diagnose medical conditions.
During the forecast period, however, the Asia Pacific is expected to grow at a CAGR of 7.1 percent, with China being the largest part in the region's economy, accounting for more than half of all exports in 2020, followed by Japan. The market for medical devices in Asia Pacific is positioned for robust development, owing to rising income levels, increased private sector investment, and government incentives.
Major players competing in the global medical device market include 3M Co., Abbott Laboratories, Allergan Inc., Baxter International Inc., Bayer, Becton, Dickinson and Co., Boston Scientific Corp., Cardinal Health Inc., Cryolife Inc., Danaher, Depuy Synthes, Endologix Inc., Essilor International SA, Fresenius Medical Care AG & Co. KGAA, GE Healthcare, Getinge Ab, Johnson Johnson, Koninklijke Philips NV, Medtronic Inc., Novartis AG, Olympus Corp., Roche Diagnostics, Siemens Healthineers, Smith+Nephew PLC, Smiths Medical, Stryker Corp., Terumo Corp., Thermo Fisher Scientific, and Zimmer Biomet Holdings Inc. Significant contribution of companies in the market growth act as economic pillars to sustain the market's expansion. For instance, in June 2021, life sciences investor Novo Holdings acquired BBI Group from Exponent for more than $463 million (£400 million). BBI Group is a supplier of products and services to the global diagnostics and life sciences industries.
The patient monitoring devices segment holds largest compound annual growth rate (CAGR) of 6.8 percent in the medtech market owing to its easy-to-use feature, while the consumables segment, syringes, needles and catheters held more than half of the market share in 2020.
Similarly, cardiology in the application segment held a major share of 18.9 percent in 2020 and household segment among all other end users holds highest CAGR of 7.7 percent in the global medical devices market due to rising trend for in-house health monitoring.