Medical device industry is way to dynamic in comparison to its counterparts for many reasons. Some of the factors that back this fact are:
- Number of mega-mergers that Medtech OEMs participates in
- Number of funding deals that start-ups undergo
- Number of capacity expansion that both CMOs and OEMs execute
- And number of innovations that surfaces up from the players.
Quick look at the indexes of medtech industry highlight that medtech ranks 1 on mega merger ground, while its innovation ranking remains 2nd.
General assumption is that industry which is making money and spending less, tend to channelize the earnings on innovation. However million dollar question that remains is, how much revenue is the medtech making.
According to recent Evaluate medtech report,medical device OEMs recorded sales of close to 375.2 Billion USD in the year 2014, further it is likely to to touch USD 477.5 Billion USD by 2020, growing with a CAGR of 4-5% Y-o-Y.
Category in highlight remains In-vitro diagnostics. In-vitro diagnostics category takes 14-15% of medical device sales, and was valued USD 52.8 billion USD for the year 2014. In-vitro diagnostics not just enjoys the major share title but also takes the title of 2nd fastest growing segment with an estimated CAGR of 5-6%. First in the row of fastest growing sector is Neurology which is witnessing growth rate of 6-7% and is likely to touch USD 9.5 billion in 2020.
Major contributor to this sales are:
|Players||Sales USD Billion (2014)|
Major contributors to this growth are:
|Players||Growth Contributors ( Growth %)|
While these growth numbers are indicative of present scenario’s things are likely to scale up at much higher pace in coming days, primarily on the account of players realizing the benefits of preventive care, patient health monitoring outside hospital set up and benefits of IOT. All this aspects have become integral part of their growth strategies and reflect in their M&A acts.
1.Medical devices sales for the year 2014 was valued close to 375.2 Billion USD.
2. Key therapeutic areas complementing this growth include in-vitro diagnostics, neurology.
3.Key players contributing to this sales include J&J, Medtronic, and Siemens.
4.Key players contributing to this growth include Medtronic, Baxter and Essilor.
In the next version we will talk about Medical device spend and its outsourcing percentage.
For more trends:
Healthcare Sourcing Trends