GLOBAL MEDICAL DEVICE MARKET SIZE (2024 - 2030)

The global medical device market reached a valuation of USD 481.67 billion and is anticipated to expand to USD 710.03 billion by the culmination of 2030. Over the forecast period spanning from 2024 to 2030, the market is poised to register a Compound Annual Growth Rate (CAGR) of 5.7%.

MEDICAL DEVICE INDUSTRY OVERVIEW

Medical devices encompass electronic instruments capable of detecting signals emanating from a patient's body, correlating to physical, chemical, or biological stimuli. These devices, including medical sensors, serve a myriad of purposes such as diagnosis, monitoring, and therapy. Advancements in medical technology play a pivotal role in accurately identifying various medical conditions, facilitating precise treatment. The prevalence of chronic ailments like arthritis, liver inflammation, cancer, renal diseases, diabetes, chronic pain, sciatica, and other neurological disorders is on an upward trajectory, propelling the demand for medical devices. According to reports from the Indian Council of Medical Research (ICMR), the Institute for Health Metrics and Evaluation, and the Public Health Foundation of India, the prevalence of Type-2 diabetes in India stood at 72 million in 2019, projected to nearly double to 134 million by 2025 should current unhealthy dietary habits persist. Additionally, global statistics from the International Diabetes Federation reveal 463 million cases of diabetes worldwide in 2019. Consequently, the medical device industry is anticipated to witness substantial growth. However, the industry's expansion may encounter hindrances due to the high costs associated with medical devices along with reimbursement challenges and stringent regulations, impeding market growth.

COVID-19 IMPACT

The impact of the COVID-19 pandemic on the medical device market has been multifaceted, presenting both opportunities and challenges. Presently, nations continue to grapple with the profound threat posed by the pandemic. A significant portion of pharmaceutical and biotech companies have redirected their research and development efforts towards discovering new treatments or interventions for managing COVID-19. Disruptions in the supply chain have led to global shortages of essential medical devices. In response, several countries have implemented measures to mitigate these shortages, including importing equipment or ramping up domestic production. Domestic manufacturing of critical medical devices aims to address trade barriers while ensuring product quality and market stability. However, concerns linger regarding counterfeiting and exorbitant pricing of imported medical equipment, which could impede market expansion. Nevertheless, certain medical devices witnessed a surge in demand during the pandemic, such as ventilators, essential for treating severe cases of COVID-19.

MARKET DRIVERS

The growing trend of high spending on healthcare and the rapid and everchanging healthcare landscape is driving the market growth

The burgeoning trend of increased healthcare expenditure coupled with the dynamic and evolving healthcare landscape underpins market growth. Healthcare spending correlates with factors such as an aging population, higher per capita disposable income, and improved quality of life. With the elderly population expanding rapidly worldwide, accompanied by a rise in life expectancy and prevalence of comorbidities, healthcare infrastructure enhancements are imperative. Nonetheless, challenges pertaining to pricing and accessibility persist, hindering widespread adoption of medical devices. Addressing these challenges necessitates an expansion of healthcare spending, which is anticipated to enhance access to medical devices and incentivize investment in research, development, and innovation within the medical electronics domain.

The need for portable devices is increasing as the focus shifts to homecare settings

The demand for portable devices is on the rise as emphasis shifts towards homecare settings. The escalating prevalence of chronic illnesses and the consequent healthcare burden necessitate innovative solutions. Hospital inpatient treatments incur substantial costs, prompting healthcare authorities to promote homecare alternatives. Consequently, market players are actively investing in the development of user-friendly medical equipment tailored for home use, resulting in the emergence of portable and wearable technologies.

MARKET RESTRAINTS

The high cost associated with medical devices poses a significant impediment to market growth.

Despite technological advancements and design enhancements, the overall cost of medical devices remains elevated, encompassing procurement and maintenance expenses. Complex devices comprising multiple components necessitate periodic replacements, exacerbating the financial burden on patients. Moreover, inadequate reimbursement policies in developing nations inhibit the widespread adoption of medical devices.

Establishing a networked ecosystem and designing suitable medical devices entail a complex process.

In the contemporary medical landscape, there's a growing demand for compact, lightweight, and cost-effective medical equipment that maintains high quality standards. Ensuring electromagnetic compatibility is paramount, encompassing emission and immunity measures against electromagnetic interference. The advent of the Internet of Medical Things (IoMT) underscores the necessity for seamless integration of connected medical devices into traditional healthcare frameworks. Collaboration among stakeholders within the IoMT ecosystem is imperative for its success. However, challenges abound, particularly concerning end-user engagement, which can impede the ecosystem's overall efficiency, potentially leading to systemic breakdowns.

MEDICAL DEVICE MARKET – BY TYPE

• Orthopedic Devices
• Cardiovascular Devices
• Diagnostic Imaging
• IVD
• MIS
• Wound Management
• Diabetes Care
• Ophthalmic
• Dental
• Nephrology
• General Surgery
• Others

The medical device market is categorized into various types including Orthopedic Devices, Cardiovascular Devices, Diagnostic Imaging, IVD, MIS, Wound Management, Diabetes Care, Ophthalmic, Dental, Nephrology, General Surgery, and others. Among these, the segment experiencing significant growth is In-Vitro Diagnostics (IVD). This growth is attributed to the increasing demand for real-time diagnostic testing for the precise detection of chronic and infectious diseases such as diabetes, cancer, and HIV/AIDS. Additionally, the Cardiovascular Devices segment is anticipated to seize a substantial market share owing to its role in detecting and treating heart disorders, a major contributor to global mortality rates.

The Minimally Invasive Surgery (MIS) market is expected to thrive due to advancements in surgical robots and their increased adoption by healthcare professionals. Moreover, the rising prevalence of diabetes and retinal diseases is projected to drive the demand for Diabetes Care and Ophthalmic equipment, thereby fueling the growth of the medical device market.

MEDICAL DEVICE MARKET – BY END-USER

• Hospitals & ASCs
• Clinics
• Others

In terms of end-users, the medical device market is segmented into Hospitals & Ambulatory Surgical Centers (ASCs), Clinics, and others. The dominance of the Hospitals & ASCs category in 2021 can be attributed to the proliferation of multispecialty and community hospitals, particularly in emerging economies. This dominance is further fueled by increased awareness among the general public, driven by healthcare organizations' and government initiatives emphasizing regular patient diagnosis and early treatment.

Furthermore, substantial growth is anticipated in the Clinics and other categories due to increased investments by public and private entities in small and medium-sized clinics and long-term care facilities worldwide, aimed at fortifying healthcare infrastructure.

MEDICAL DEVICE MARKET - BY REGION

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East
• Africa

The medical device market is regionally segmented into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. North America currently leads the market, with a valuation of USD 168.76 billion in 2021. This leadership is attributed to favorable reimbursement regulations, a well-established healthcare infrastructure, rapid adoption of advanced medical technologies, and the presence of major market players. The region is witnessing an increase in patient diagnosis and treatment due to the growing prevalence of chronic diseases.

In Europe, the market is expected to grow significantly owing to increased healthcare spending, well-developed infrastructure, and the introduction of innovative diagnostic and treatment equipment. The Asia Pacific region is projected to witness rapid growth due to rising incidences of diseases like cardiovascular disorders and diabetes, along with market players' focus on expanding their presence in developing markets such as China and India.

MEDICAL DEVICE MARKET - BY COMPANIES

The medical device market is characterized by fragmentation and intense competition among numerous players. Key players in the market include:

1. DePuySynthes
2. Medtronic Plc
3. Fresenius Medical Care
4. GE Healthcare
5. Philips Healthcare
6. Ethicon LLC
7. Siemens Healthineers
8. Stryker
9. Cardinal Health
10. Baxter International Inc.
11. BD

NOTABLE DEVELOPMENTS IN THE MEDICAL DEVICE MARKET

• PRODUCT LAUNCH: Medtronic introduced the Hugo System in December 2021, a robotic-assisted surgical system designed to aid in the detection and treatment of various illnesses.
• PRODUCT LAUNCH: Johnson & Johnson launched VELYS Digital Surgery in August 2021, offering a robotic-assisted total knee arthroplasty procedure in the United States.
• PRODUCT LAUNCH: Koninklijke Philips N.V. introduced the abdominal aortic aneurysm (AAA) model in January 2021, providing a patient-friendly alternative to the existing standard of treatment for AAA patients.
• PARTNERSHIP: Smith & Nephew collaborated with Movemedical in January 2021 to extend inventory automation solutions and enhance customer experience.

PARTNERSHIP: Medtronic PLC partnered with The Foundry, a medical device company, in October 2020.