Our 17th Year of Publication
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Cover Story

Medical 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 rapid.”

Global Market for medical device industry

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 2008.

(Fig: Global Medical Devices Market growth set to accelerate)

Share of different categories:

Medical, Dental & Surgical equipments: 40%

Plastic Disposables                              : 25-30%

Implants                                              : 20-25%

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 USA

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.

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