Healthcare spending will grow to $6 trillion annually, an average of 5.5% compound annual growth rate (CAGR) to 2027, according to The Centers for Medicare and Medicaid Services. That growth continues boosting demand for medical devices. Valued at $425.5 billion in 2018, the global medical device market is forecast to reach $612.7 billion by 2025, registering a 5.4% CAGR. A growing global medical device market leads to expanded medical device outsourcing, with Reports and Data indicating that the global medical device outsourcing market, valued at $96.6 billion in 2018 will reach $208.4 billion by 2026, a CAGR of 10.1%.
Beyond these strong forecasted numbers, 2020 also began with the permanent repeal of the medical device tax (see Regulatory, pg. 16) and the growing, aging population where globally, there are more centenarians than at any point in history and average life expectancy has increased from 67 to 72 in the past 20 years. And, while connected technology has been quickly adapted by younger generations, 76% of those 65 and older report that connected care technology is important to enable them to age at home; the market is projected to grow at a CAGR of 30.27% through 2025, reaching $232.9 billion.