In 2013, analysts forecast the global medtech market would grow by 5% [compound annual growth rate (CAGR) 2013 to 2020] to reach $514 billion by 2020. Slowly, they ratcheted down those expectations indicating lower yearly CAGR figures, eventually settling closer to a $477 billion figure for last year.
That didn’t happen.
In 2019, the global medtech market reached nearly $457 billion, having increased at a CAGR of 4.4% since 2015. And then came the global COVID-19 pandemic, which contributed to the market declining to $443 billion in 2020, a -3.2% rate. While the decline is mainly due to lockdowns imposed by governments across the world and disruptions in the supply chain, the industry experienced unprecedented decreases in elective surgeries and dramatic increases in ventilator manufacturing.
However, now that we are in 2021, analysts forecast the global medtech market will get its groove back, adjusting to a new normal with expectations to reach $671 billion by 2027. Some global trends expected to shape this growth include demand for hospital supplies, in-vitro diagnostic devices, and respiratory care devices since the emergence of COVID-19. This need should continue to combat the ongoing pandemic and avoid the risks of emergence and spread of similar infections. (More on sector specific growth can be seen in this month’s infographic, page 8; and our complete 2021 forecast starts on page 20.)
In addition, high prevalence of chronic diseases increases vulnerability to other contagious infections, which will increase demand for medical devices used in diagnosis, prognosis, and treatment. Telehealth and the Internet of Medical Things (IoMT) will flourish in these areas, but not without some hurdles.
Deloitte analysts note in “Medtech and the Internet of Medical Things: How connected medical devices are transforming health care” that despite key enablers driving IoMT’s adoption, some challenges must be overcome. (https://tinyurl.com/ Deloitte-IOMT)
• Funding, business, operating models
• Regulatory change
• Digital talent, digital capability
• Maintaining trust in digital age
• Collaboration between healthcare providers, medtech
• Connected medical devices benefit patients, providers, payers
• Joining dots between connected medical devices, healthcare IT
• Applying advanced analytics for critical insights, better decision making
• Medtech services that demonstrate patient outcome improvements, reduced costs
So, with the connected medical market estimated to be worth $158 billion in 2022, what are your plans to make sure the devices you are producing keep up with the rapid advancements and embrace IoMT?