Over the past few years, the MedTech (also called Medical Devices and Diagnostics) industry has witnessed significant growth and development. An aging population, rising burden of chronic diseases and increased trust in medical devices by clinicians and consumers have resulted in greater alliances between pharmaceutical companies and the MedTech sector. However, the MedTech industry is also facing increasing challenges, such as an ever-changing regulatory environment, reimbursement cuts, high cost of advanced medical technologies and safety pressures.
Despite these challenges, the global MedTech market revenue for 2017 was at $438 billion USD. With a compound annual growth rate (CAGR) of 6%, by 2022, global revenue is poised to reach an estimated $585 billion USD.
The U.S. and EU are two of the largest MedTech markets, with an estimated revenue of $162 billion USD and $134 billion USD, respectively. Despite their market strength, developed regions are facing numerous market drivers and barriers that are restricting opportunities for growth. In order to navigate these challenges, leading MedTech companies are targeting emerging markets as potential areas for growth and development. In fact, companies like Johnson & Johnson (J&J), Abbott and Medtronic have set up manufacturing, and research and development (R&D) centers in Brazil, China and India, where markets are growing three-to-four times faster than in developed countries.
In 2017, in vitro diagnostics (IVD) held the top position among all therapeutic segments of medical technology products, followed by cardiology, with market sizes of around $62 billion USD and $50 billion USD, respectively. Increased incidence of chronic disease, expansion of insurance coverage and increasing affordability of MedTech products have propelled growth of these medical device segments. Neurology is predicted to be the fastest-growing segment, with a forecast growth of 9% between 2017 and 2022.