Medtech market to see sales of $514B by 2020

Chicago, Illinois - According to the latest forecasts from market intelligence firm Evaluate Ltd. “EvaluateMedTech World Preview 2014, Outlook to 2020,” global medtech sales are expected to reach $514 billion by 2020, with megamergers reshaping the lineup of industry leaders.

Looking at recent industry activity, the report shows that the value of completed medtech M&A deals jumped 363% during the first half of 2014 compared with the same period in 2013. M&A activity will continue on a large scale; when Medtronic and Covidien join forces next year, the $42.9 billion deal will mark the single biggest merger in the sector’s history. Likewise, the $13.4 billion merger between orthopedic powerhouses Zimmer and Biomet, also set to close in 2015, will have profound changes for the orthopedic segment of the market.

“2014 marks a year of rapid change for the global medical device market, particularly within the cardiology and orthopedic spaces, which have been dominated by megamergers,” said Ian Strickland, report author and EvaluateMedTech product manager. “If the deal between Covidien and Medtronic goes through, we could see a new market leader. In an industry forecast to be worth more than half a trillion dollars in 2020, that is no insignificant achievement.”

Among the report’s key findings:

• Worldwide medtech sales are forecast to reach $514 billion by 2020
• Global R&D spend is set to grow by 4.2% (CAGR) to $30.5 billion by 2020
• FDA granted 23 first-time premarket approvals of medical devices in 2013, compared with 41 in 2012 – a massive 44% decrease
• M&A deal value in the medtech sector jumped 363% to $30 billion in the first half of 2014 over the same period in 2013
• $1.3 billion raised in completed medtech IPOs during the first half of 2014, 44% more than the whole of 2013

“EvaluateMedTech World Preview 2014, Outlook to 2020,” highlights trends in medtech including: consensus sales forecasts to 2020, the top 20 companies in 2020, R&D spending currently and in the future, FDA approvals, M&A activity, venture financing, IPOs, and enterprise value. Download the full complimentary report and infographic here.

Source: Evaluate Ltd.