Kalorama: Global Medical Device Market Reaches $381 Billion
NEW YORK, May 25, 2016 /PRNewswire/ -- According to Kalorama Information, the world market for medical devices reached $381 billion in 2015. Though these are challenging times in the market, there is still plenty of opportunity for success for companies that remain optimistic and seek innovation. Toward that end, in search of new growth prospects medical device companies spend a higher percentage of their revenue on research and development (R&D) than do companies in other industries. Also, in addition to R&D outlays, many device companies are merging to build revenue growth and present combined offerings to hospital and physician customers. The seventh edition of the healthcare market researcher's report, The Global Market for Medical Devices, covers the broad range of the medical device market, commenting on these and other drivers of the overall market.
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 these are devices that are regulated. This is a scattered market in which hundreds of companies worldwide participate. Despite this, fifteen companies earn 40% percent of the revenue in this market and much of the revenue is earned in a few discernible categories, cardiovascular, respiratory, patient monitoring, wound care imaging and orthopedics being top areas.
The Global Market for Medical Devices, 7th Edition, can be found at Kalorama Information: http://www.kaloramainformation.com/redirect.asp?progid=88734&productid=10058730.
"Even with slight growth in the market, prospects in medical devices in the aggregate are more promising than, for example, in the current pharmaceutical industry, challenged by patent expirations and regulatory activity," said Bruce Carlson, Publisher of Kalorama Information. "Although the largest component of the medical device market is in the United States, the majority of sales are non-U.S., and considerable future growth is occurring in other markets."
One of the most significant drivers of all healthcare services is population and specifically, the population of older persons. The aging of the population increases a host of statistical events that lead to more medical device demand, such as injuries, surgical procedures, hospital admissions, and chronic disease. The population is aging in the largest healthcare market of the United States, which alone is significant. However, other significant world healthcare markets are dealing with the challenge of aging populations, including those of Europe, Japan, and China.
The coming years will test the strategies of device companies to innovate and develop emerging markets as some of the traditional sources of revenues will be challenged. Reimbursement reduction schemes in the U.S. and Europe will disrupt even the most innovative of device companies able to develop products that can command higher prices. The United States remains the largest market for medical devices, but growth in device sales will be slower in the long term due to cost-cutting measures, group purchasing consolidation, and reimbursement challenges. Various activities in the European market are ongoing, from the revision of the Medical Devices Directives (MDD) to European collaboration in the field of Health Technology Assessment (HTA). These need to keep moving forward to safeguard patient access to medical technologies and innovation in Europe.
In terms of market leadership, Medtronic has moved to the top of the device market due to its merger with Covidien, completed in 2015. This market share change is also due to the device company asset sales of Johnson & Johnson, now second in the market. GE Healthcare, Philips, Boston Scientific, and St. Jude Medical are also among the top companies. The coming years will test the strategies of these and other device companies to innovate and develop emerging markets as some of the traditional sources of revenues are challenged.
The seventh edition of Kalorama Information's Global Market for Medical Devices contains: an overview of medical devices and their regulation in several world markets; market size estimates and forecasts to 2020 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.
As part of its coverage, the report finds that a few trends in the global market are continuing and some new trends have developed as well. Revenue growth at major companies has changed and so have most revenue forecasts, including Kalorama Information's. Outlined in the report is the host of mergers and acquisitions have occurred in the market as well, as players seek to purchase growing operations.
The Global Market for Medical Devices, 7th Edition, can be found at Kalorama Information: http://www.kaloramainformation.com/redirect.asp?progid=88734&productid=10058730.
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's and are also available on www.marketresearch.com and www.profound.com.
We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at www.kaloramainformation.com.
Contact:
Bruce Carlson
(212) 807-2622
[email protected]
www.KaloramaInformation.com
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SOURCE Kalorama Information
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