The Market for Medical Devices, 12th Edition

The Market for Medical Devices, 12th Edition

The medical device industry, often referred to as the medtech industry, is an important aspect of the entire healthcare industry. The medical device industry is constantly updating and changing through the continued development of new technologies, equipment, tests and devices. Advancements in the medical device markets are life-changing and are allowing patients to live longer, healthier and more productive lives. However, the medical device industry has unique challenges. It is a heavily regulated industry in most nations of the world, as the regulatory section of this report details. Devices need to be approved for reimbursement and prices are negotiated in many cases by group purchasing organizations and governments. Companies in the field must make constant research and development investments to produce the innovations that drive market success. Yet, despite these challenges, devices also benefit from servicing an enlarging elderly population around the world. Devices are also among the first priority of emerging market nations, as they increase the size of their economies and their healthcare spending. Therefore, there are a great many device competitors and continued investors and venture capitalists interested in the field.

The 12th edition of Kalorama Information’s Global Market for Medical Devices consists of new market trends and forecasts. Market share position has changed for some companies as a result of the pandemic and for some mergers, while restructuring and divestitures of certain medical device units have impacted results. With increasing growth in the market, companies are merging to build revenue growth and present combined offerings to hospital and physician customers.

As part of its coverage, this report contains:

• an overview of medical devices and relevant regulation in 50 world markets;
• market size estimate and forecast to 2027 for the global market, the United States market and several country markets, including China, Japan, India, Brazil, Germany, Canada and other nations;
• an index of bellwether device companies;
• markets for specific categories of medical devices;
• a look at market drivers and limiters;
• and company profiles of major device concerns.

The definition of a medical device is a broad one. A medical device is a product that is used in treatment, diagnosis, or injury repair in a patient that does not achieve its effect through chemical action or metabolism in the human body. Most importantly, they are devices that are regulated. Because of the broad definition, estimates of medical device markets vary, as any item from a nuclear camera or catheter to a latex glove can be considered a medical device. In consideration of the fragmentation of this market, several reports vary on the definition, scope and methodology in calculating the total medical device market. In this report, medical devices include those that are used to treat, diagnose or monitor a condition. Excluded are areas of medical IT, which because of the complex nature of these markets, have been reviewed separately by Kalorama Information in other reports, including Electronic Health Records (EHRs) and healthcare cloud products. Also, excluded are services associated with many devices including laboratory service fees and patient monitoring services. It is a scattered market in which hundreds of companies participate worldwide. Despite this, 15 companies earned almost half of the revenues in this market. In addition, much of the revenue is earned in a few discernible categories:

• cardiovascular,
• dialysis,
• respiratory,
• in vitro diagnostics (IVD),
• patient monitoring,
• wound care,
• imaging
• and orthopedics being top areas.

Top Companies Covered

Because of the variety of types of medical devices, there are several hundred competitors. There is a growing trend toward consolidation in the industry and as a result the top 15 companies are maintaining and/or gaining a growing percentage of the market with each year. Additionally, there is a great deal of shifting in ranking as a big acquisition could catapult a company several spots up the ladder. Most companies operate in just a few markets, though the top companies such as Medtronic, J&J, Siemens Healthineers, Danaher, and Philips are multi-billion-dollar companies that operate in several categories. There are thousands of companies making devices in the United States alone, most of these private, and many having less than 50 employees.

In each edition, Kalorama Information looks at 12-15 companies in the industry that are large, global and representative of different categories of medical devices. The companies' performance provides insight into the performance of the global device market and reveals trends in geographic sales distribution and research and development spending. The following companies make up Kalorama’s Index of Bellwether Device Companies.

• Abbott Laboratories
• B. Braun
• Baxter
• Becton Dickinson
• Boston Scientific
• Cardinal Health
• Danaher Corp.
• GE Healthcare
• Johnson & Johnson
• Medtronic
• Philips
• Roche
• Siemens Healthineers
• Stryker Corp.
• Zimmer Biomet

Scope and Methodology

This report was assembled using both secondary and primary data. Data from Kalorama Information's previous medical device reports, in addition to company annual reports, trade publications, government, Ministries of Health and medical literature were used as a foundation for estimates. The authors draw on more than two decades of knowledge and experience and completed a range of personal interviews with executives at medical device companies to provide as a key source of estimates for specific device markets. Further analysis is derived from statistical methods and various analytical practices to evaluate indicators for market size and forecasting. More than 50 countries were analyzed with comprehensive processes including interviews and published documents. Kalorama Information focuses on estimates of manufacturer revenues for business planning. Kalorama Information has already conducted scores of studies in medical devices.