Robust MedTech Growth Expected
(This article has been updated)
The MedTech industry stands on the verge of unprecedented growth, driven by factors such as an aging global population, rapid technological advancements, and a greater focus on healthcare efficiency. It is essential for CEOs and Board Members to understand the dynamics shaping this robust growth and capitalize on the opportunities it presents. All indications suggest that robust MedTech growth is expected.
With healthcare providers increasingly adopting MedTech solutions to improve patient outcomes and enhance operational efficiencies, spending on MedTech products and services is set to accelerate. There are several factors driving MedTech growth, including:
Demographic Shifts: The global population is aging, leading to an increase in the prevalence of chronic conditions and a greater demand for healthcare services. The MedTech industry stands to benefit from this trend, as the need for innovative medical devices, diagnostic tools, and treatment solutions intensifies.
Technological Advancements: The rapid pace of technological advancements, such as AI, big data, and 3D printing, is creating new opportunities for MedTech companies to develop novel solutions that address unmet medical needs and transform patient care. By harnessing the potential of these cutting-edge technologies, MedTech companies can unlock new revenue streams and achieve sustainable growth.
Worldwide MedTech sales
MedTech revenues are projected to grow at a Compound Annual Growth Rate (CAGR) of 5.6% between 2017 and 2024, reaching a staggering $595 billion by 2024. This steady growth trend is an encouraging indicator for industry leaders, signaling the continued expansion and resilience of the MedTech sector.
MedTech Growth by Device Area
- In 2017, the top Medtech sales by device areas were:
- In Vitro Diagnostics (IVD) – ~$53B
- Cardiology – ~$47B
- Diagnostic Imaging – ~$40B
- In Vitro Diagnostics (IVD) remains the number one device area in 2024 with sales of ~$79bn (Source: Evaluate Pharma 2018).
- Diagnostic imaging sales forecast to reach $51bn in 2024
- Neurology set to be the fastest-growing device area with a CAGR of 9.1% between 2017 and 2024
Exhibit 1: Market Share & Sales Growth (2017-2024) by Device Area
Exhibit 2: Worldwide Medtech Sales by Device Area
Composition of the WW MedTech Market
Top 10 companies account for ~40% of the overall MedTech market. (See Exhibit), and top 30 companies for between 60-70%. This presents opportunities for industry consolidation.
Exhibit 3: Composition of WW Medtech Market
Medtech R&D Spend & Growth
Worldiwde spend on MedTech R&D has been increasing and is expected to reach just under $40B by 2024, at a CAGR of ~4.5%. (Source: Evaluate Pharma 2018).
To remain competitive in the dynamic MedTech space, companies must embrace innovation and disruption. Investing in R&D, exploring strategic partnerships, and fostering a culture of experimentation are essential ingredients for success in this rapidly evolving landscape.
Exhibit 4: Worldwide Medtech R&D Spend & Growth (2011-2024)
Exhibit 5: R&D as % of Medtech Sales
In conclusion, the MedTech industry is poised for robust growth, presenting exciting opportunities for companies to expand their market presence, drive innovation, and improve patient care. By understanding the key trends shaping the industry, developing strategic growth plans, and fostering talent and leadership, CEOs and Board Members can successfully navigate the rapidly evolving MedTech landscape and position their companies for long-term success.
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