The Outlook for Medical Devices in Western Europe

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Apr 23, 2012, 08:12 ET

NEW YORK, April 23, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

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The countries of Western Europe represented a total market of over 401 million people and a combined GDP of US$16.4 trillion in 2007.

The 11 main Western European markets for medical products and equipment are wealthy and mature. Is there any point in manufacturers trying to break into markets they are not already servicing, and, if yes, where? If they are already operating in the region, what are the prospects for growth and what operating environment will they face in the future?

Valuable markets...

News stories chronicle the pressures and problems facing governments trying to expand or maintain health provision in a costconstrained world. but one fact remains. The countries covered by this report represent a total medical device market value of US$58.3 billion in 2008. We forecast this figure will grow by US$24.1 billion over the next five years to US$82.4 billion!

...with cost pressures

All health funders are experiencing difficulties in meeting the demands on modern health systems. Pressures arise from many quarters including:

An ageing population needing longer and more intensive medical treatments

Unplanned population increase due to an influx of immigration and migrant workers

Patient and clinician demands for the latest equipment/services

These quarterly updated reports analyse the issues

The Outlook for Medical Device Markets in Western Europe is published by Espicom Business Intelligence. Each report provides an individual and highly-detailed analysis of each market, looking at the key regulatory, political, economic and corporate developments in the wider context of market structure, service and access. The reports are available individually or as a discounted collection, and prices include 4 completely updated reports sent quarterly plus a comprehensive annual review.

The developed and mature markets of Western Europe are committed to investing in the latest technologies and are still projected to grow, despite the economic downturn.

Why invest in Western Europe?

Three of the five largest medical device markets in the world are in Western Europe; Germany, France and the UK. Like all other sectors, the medical device markets will be impacted by the global economic recession in the short term. This is a danger for domestic manufacturing industries, especially in Germany, which rely on demand for exports of their products. The downturn will also lead to a strain on health spending. However, beyond the current recession the countries of western Europe are expected to return to growth with leading markets averaging CAGR of 3.4% to 2016.

What factors are affecting medical device market growth?

The mature and high value medical device markets in Western Europe are wealthy and developed. There is a tension between attempting to contain health costs and a desire to remain at the forefront of technological innovation, hospitals will need to invest in the provision of new medical equipment and technologies to maintain this high standard of care.

In addition, healthcare services will need to become more efficient in order to cope with financial pressures and the needs of ageing populations. As part of this, there will be

an increased demand for efficiencies, for example, medical devices that facilitate minimally invasive surgery, which can increase the number of operations performed in day

surgery and ensure a faster turnaround of patients. Despite recessionary pressures, market growth rates over the coming years will be positive.

A market within a market

There has been a strong growth in imports across western Europe in recent years, and imports tend to account for around 80% of the market. Most importantly,

trade between EU dominates the import market, and companies wanting to exploit the full potential of major European countries need to ensure an effective marketing and distribution network.

Other factors affecting the market's growth potential including changes in the regulatory environment or government measures such as spending controls on medical devices. The significant increase in the migratory population, along with an increasing and needy population of elderly people will see demand for medical devices and equipment maintained.

Complete quarterly-updated analysis to keep you informed

Now you can easily evaluate these markets with The Outlook for Medical Devices in Western Europe. Each report provides individual and highly-detailed analysis of the market, looking at the key regulatory, political, economic and corporate developments in the wider context of market structure, service and access

More Information...

11 Key Markets Covered

Austria

Belgium

France

Germany

Ireland

Italy

Netherlands

Portugal

Spain

Switzerland

United Kingdom

MARKET OUTLOOK

Key national data projections

Current market size

Unique 5-year market projections

Market outlook

Market structure; Including statistical data on imports and exports

Market access; Including distribution and medical device regulation

Healthcare analysis; Including demographics, healthcare system, health expenditure, healthcare infrastructure and personnel

HEALTHCARE DATA; A comprehensive tabula review of the market, including economic indicators, demographics, health expenditure, hospital and primary care data, and healthcare personnel.

DISTRIBUTORS; Details of the medical equipment distributors held in Espicom's database at the time of publication.

UNITED KINGDOM

The UK has one of the largest medical device markets in the world, valued at US$9.0 billion in 2011. The domestic market vies with France as the second largest in Europe behind Germany. Per capita expenditure is equal to US$144. The UK market for medical devices is predicted to increase by 3.5% per annum to attain a value of US$10.1 billion by 2016. The growth of the UK medical device market is predominantly import-led as many domestic manufacturers are not able to rapidly adjust to changes in demand. This led to a trade deficit for the seventh year in succession in 2008. The import market has not been immune to the recession, however. It has faltered since mid 2008, and the

total was 11.8% lower in 2009 than in 2008. There was a period of huge growth in public health spending under the Labour government after 2001, which saw the NHS budget almost triple. In 2008, total health expenditure was estimated at £140.3 billion (US$227.1 billion). Of this, £118 billion is public, equal to around 84.0% of the total. Expenditure is set to slow in the wake of the 2009 recession and enormous government deficit, however. The newlyelected (May 2010) Conservative/Liberal-Democrat coalition government has pledged to maintain some sort of growth in recurrent health spending, although this may prove difficult. The latest published government plans involve a 9% cut in capital health spending in 2011.

FRANCE

France ranks among the top five largest medical device markets in the world. France spends 2.9% of total health expenditure on medical equipment and supplies and 0.3% of GDP, which is average for a West European country. Whilst the overall market is generally well developed, there are sectors which remain underdeveloped, particularly for the more innovative forms of technology, despite efforts to reform the hospital planning process and increase investment. Whilst the public sector is the largest purchaser of most diagnostic and therapeutic equipment, the private sector is the dominant purchaser of surgical equipment and supplies. The continuing deficit of the national health insurance funds has prompted new measures to control spending on medical devices, similar to those already in force for pharmaceuticals. A target of 2.9% growth in health insurance spending has been set for 2011. To meet this target, efficiency savings of 2.4 billion euros need to be found with healthcare products required to contribute 500 million

euros. Specific measures include lowering the reimbursement rate for medical devices reimbursed at 65% to 60% with the aim of saving 100 million euros. The medical market is only likely to see moderate growth, rising from US$8.3 billion in 2011 to US$9.8 billion by 2016. The medical manufacturing industry has seen an influx of foreign companies; most larger manufacturers are now subsidiaries of multinational groups. With flagging domestic production in several sectors the French medical device market is increasingly reliant upon imports, which now account for around 80% of consumption. The value of medical device imports exceeds the total market value due to the fact that

not all imported products are destined for the domestic market, but are re-exported to other countries.

SPAIN

The Spanish medical market ranks fifth in the EU-27 and eighth in the world. In 2010, it was estimated at US$4.5 billion, which is similar to Canada's market size. Per capita spending on medical equipment is on the low side for an EU-27 country. Much of the market, especially high-end products, is centred in the main cities, Madrid and Barcelona. Imports, valued at US$4.1 billion in 2009, represent the majority of the market, an estimated 87.9% in 2010. Spain has one the world's largest balance of trade deficits in medical devices, valued at US$2.7 billion in 2009. Consumables are the largest medical sector, followed by orthopaedic & implantable products, diagnostic imaging apparatus

and dental products. Spain has a strong medical device manufacturing sector, which tends to be based around Madrid and Barcelona. Companies, however, tend to be small and concentrated at the low to medium technology end of the market. Major export categories included medical supplies, syringes, needles and catheters and X-ray equipment. Net medical production was valued at US$1.1 billion with exports amounting to US$1.3 billion in 2009.

To order this report:

Medical Devices Industry: The Outlook for Medical Devices in Western Europe

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