The future of the global medical device industry

The future of the global medical device industry

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If the data is any indicator, the global medical device industry is skyrocketing to huge growth in the next few years. According to the Global Medical Device Industry 2012-2017: Trend, Profit, and Forecast Analysis, the industry, which has grown significantly over the past five years, will hit $302 billion in the US by 2017. That’s fantastic news for those of you who work in the medical device field.

This industry, which includes cardiovascular, surgical, home health, and general medical devices, is still highly fragmented, with nearly half (46%) of the global market focused in the United States.

The global picture

Naturally, expanding your sales footprint beyond the US makes for increased profits. But there is currently a high level of competitiveness globally, which, combined with government regulations that vary from country to country, makes it daunting for many companies to enter global markets.

Some markets are easier to enter than others. In a recent study by Emergo Group, respondents were somewhat to very positive about opportunities in the US, Asia-Pacific, and EMEA.  Sales in Asia have been steady over the past few years, signifying more opportunities to come, and experts are also turning their attentions to South America as a new developing market.

Challenges worldwide

The reasons some companies choose not to enter certain markets vary, but according to the study, these are a few primary barriers:

  • Changing regulatory environment

  • Funding and financing

  • New product development

  • Pricing pressure

  • Increased competition (especially in Asia)

Regulation, naturally, is an area that many businesses find overwhelming to deal with. Not only do medical devices themselves have to meet certain regulations, but so does the copy in the product packaging and related information. It’s a long and rigorous process to ensure copy is translated effectively into the local language and the product meets local standards. In fact, those in the industry think regulations have gotten more difficult to comply with in regions like Brazil, China, Europe, and the US.

What’s in store for technology

Given the rapid advancements we’re seeing across technology in general, the medical device industry is no exception, and will reap the benefits of newer, cheaper, faster, and more efficient technology.

Surgical medical technology, for example, will use more intelligent devices, nanotechnology, and robotic automation, as well as energy-based devices and improved use of data.

With the flood brought on by the Internet of Things, there will be more and more options for consumers to take control of their own health and health monitoring. This provides ample benefits for every type of consumer:

  • Well patient (can monitor exercise and health levels)

  • At risk (manage obesity and monitor risk factors)

  • Chronic and acute care (use in-home devices to minimize doctor visits)

The devices in the not-so-distant future will be Internet-connected and provide real-time results. Imagine being able to process blood samples on-site rather than sending them to a lab. Or monitoring white blood cell levels from the convenience of a patient’s home, then uploading that information to his physician.

The medical devices of tomorrow will be more connected, more personalized, and provide more information, allowing consumers to feel connected to their own health. The potential to reduce treatment costs will affect everyone from the consumer to the health insurance industry.

Also look for improvements in diagnostics, which is increasingly being owned by the consumer through apps and in-home devices. This may cut down on the need for emergency surgery or treatment.

With burgeoning technology and more demand in developing countries for medical devices in every niche, there are plenty of exciting things on the horizon for the medical device industry in the coming years.