Device Markets - The Growth Set To Accelerate
Global v/s India
The healthcare delivery system
is under tremendous pressure to identify and commercialize
simple medical solutions quickly to lower costs, control
infections, reduce liability and eliminate preventable
errors. The trend toward more user-friendly home health
care products will also spur the demand for innovative
medical devices. With the convergence of scientific,
electronic and digital technologies; new breakthroughs in
medical devices will play a critical role in solving the
problems in healthcare and enhancing the human condition.
Innovation is the life-blood of the industry.
Healthcare visionary, Jerome
H. Grossman, has noted that “Given the fundamental forces
for change in health care, we have reached a tipping point
in medical services delivery. Rapid change is inevitable.
It is an opportune time to seek and commercialize
innovation from the medical profession and bring it to the
gatekeepers in medical supply to solve the problems more
Global Market for medical
The global market for medical
devices is US$ 220 billion. The medical supply industry
has had a consistent growth rate of over 10% for the last
several years. The leading companies struggle to maintain
30% of their revenues from new products introduced in the
last 3 years. The revenues for health care products and
medical devices have consistently grown at an annual rate
averaging over 10% in the last five years and there is no
slow down in sight.
* The market excludes the
orthopedic segment, which reported sales of US$ 17.2bn in
(Fig: Global Medical
Devices Market growth set to accelerate)
Share of different categories:
Medical, Dental & Surgical
Growing awareness about
health, new technological innovations in the areas of
diagnosis and Treatment, increasing old age population,
changing disease patterns (blood pressure, hyper tension
etc) towards the ones requiring long term treatment etc
are some of the factors leading to growth of the industry.
Medical Device Markets in
The United States of America,
with about a 45% market share of the global medical
devices market and is the dominant market for medical
devices in the world. The medical device market in USA is
expected around US$83 billion and is estimated to grow at
rate of CAGR 5% during the year 2006-2011.and to reach
about US$ 106 billion.
Medical device production in
United States appears strong. As per” Whelan”, the U.S.
market produces half of the world's medical devices and
consumes approximately 40 percent of the world's output
Not surprisingly, the market is well-concentrated at the
top. According to Whelan, the 17 biggest medical device
manufacturers, defined as companies with revenues
exceeding $500 million, account for some 65 percent of the
total revenue. In the U.S., Whelan says there are
approximately 6,000 medical device manufacturers of all
size and that those companies employ about 400,000 people.
Still, about 80 percent of those 6,000 employ fewer than
50 people. Some 98 percent have fewer than 500 employees.
But even if the revenue deck seems somewhat stacked in
favor of large concerns, he asserts that medium and small
companies "can still be highly profitable."
He said that most of the top
medical devices companies are specialists in only certain
segments of the industry, such as in orthopedic,
cardiovascular or surgical products. Yet, giant
manufacturers such as Johnson & Johnson, Baxter, and
Becton Dickinson have broader product lines focused on
high-volume medical supplies. Nine of the top ten medical
device companies in the world are based in the U.S.