Increased levels of consolidation in the industry is expected, with 70% of respondents predicting there will be an increase in merger and acquisition activity over the upcoming 12 months. There are many factors which have contributed to the switches to inorganic growth, including, high operating and R&D costs, rising competitions, stringent government regulations and business competence to name a few.
Johnson & Johnson lead the global medical device industry, with the top 10 companies collectively covering 45% of the market making it highly fragmented. A department head of a medical device industry supplier company based in Asia-Pacific states:
“The current medical equipment market is highly fragmented and unstructured in this region, and is likely to witness a number of acquisitions to improve growth through collaborative efforts in technology, R&D and innovation.”
Future development expectations for companies include enhancing their operational efficiency through software and technology upgrades, increasing capacity utilization and expanding capacities and production levels. Sikorsky Aerospace Services launched its new LUH Helotrac 2X maintenance management software system in March 2011. The software will support the US Army's UH-72A Lakota light utility helicopter (LUH) program. A manager from an aerospace industry supplier operating in Asia-Pacific states:
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