The global market for medical device technologies should grow from $605.7 billion in 2020 to $796.9 billion by 2025 with a compound annual growth rate (CAGR) of 5.6 percent for the period of 2020–2025, according to a report from BCC Research. Drug-delivery devices, in particular, should grow from $239 billion in 2020 to $302 billion by 2025 with a CAGR of 4.8 percent for the period of 2020–2025. The report attributes the global market’s growth to the increasing prevalence of chronic diseases, the rise in the world’s geriatric population, growing demand for minimally invasive procedures, the rise COVID-19 cases during the pandemic, and an increasing number of product launches.
The report points to the fact that governments are looking at medical device technology companies in efforts to make healthcare more affordable. “Some governments in Western Europe encourage older adults to stay in their homes for longer periods in order to trim budgets. There is considerable pressure on medical device technology firms to ensure compliance with varying regulatory standards. Governments of various regions have framed rules and regulations in order to ensure that these companies meet safety and efficacy criteria for their devices,” BCC analysts note in the report.
It also highlights expected growth in the developing countries of the Asia-Pacific region due to the growing number of medical procedures being covered by insurance companies, increased government spending on healthcare, growing geriatric populations, rising awareness among people concerning healthcare, and a rise in disposable income.
“India and China are lucrative markets, with populations of over one billion each and favorable economic growth rates despite the recent global downturn,” the analysts explain. “Companies have not completely exploited these markets, facing problems with distribution, competition from low-cost products manufactured locally, and an inability to introduce products that meet patient needs in these countries.”
And, of course, the rapid spread of COVID-19 during 2020 had a great impact as the medical device industry shifted into high gear to rapidly produce tests and ventilators needed in nearly every region of the world.
“The virus created unprecedented challenges for the medical device industry. COVID-19 put the medical device industry at center stage with the phenomenal demand for personal protective equipment (PPE), diagnostic tests, ventilators, and other critical medical supplies,” the report notes. Medical device leaders looked “outside the normal sector boundaries in order to explore creative solutions to further supplement capacity, such as partnerships with companies outside the sector, open-source equipment design, and deployment of medically trained employees to support public-health needs.”
Editor and Director of Medical Content
For a copy of the report, visit here