Global Medical Device Revenue to Top US$300 Billion

Device innovations, demographics, and hospital austerity will drive the global medical device market to $312 billion, according to a new report from Kalorama Information (New York, NY, USA), a healthcare market research firm.

The market for medical devices is vast and includes different categories, from complex magnetic resonance imaging (MRI) machines and robotic laparoscopic surgical equipment to wheelchairs and medical gloves. According to Kalorama Information, there are two trends that are at odds in any assessment of the global medical device industry; one is the aging of the world's population, and especially in key healthcare markets such as the US and Japan. The other trend is the global recession, and its impact on healthcare spending.

As the economy recovers and new middle class customers in emerging markets demand better healthcare services, the report predicts the pace of revenue growth to increase, reaching a compound annual growth rate (ACGR) of 4% to 6% growth over the next few years in the global device market, which was valued at $290 billion in 2009; in this context, the average growth rate belies that in some categories growth is much higher than the average rate. And while hundreds of companies operating in the global medical device market, the majority of revenues will be earned by thirty of the top companies, which Johnson & Johnson, Siemens Healthcare, Medtronic, GE Healthcare, and Baxter.

"Some categories of medical devices are commoditized and competition will hold prices in check, while in other areas revenues will flourish,” said Bruce Carlson, the publisher of Kalorama Information. "Patient monitoring, oxygen systems, home dialysis, anything that can reduce hospital stays and keep patients at home with their family, are seeing faster revenue growth.”

Medical Devices are classified into three categories. Class I includes medical devices that pose minimum risk to a patient and are simpler in design, falling into the general controls category, which includes devices such as tongue depressors, bedpans, elastic bandages, examination gloves, hand-held surgical instruments and X-ray film. Class II devices are subject to special controls, in addition to the general controls. These devices require a higher level of safety assurance in terms of potential injury or other harm to the patient. Devices in this class include X-ray machines, powered wheelchairs, infusion pumps, surgical drapes, and ultrasonic diagnostic devices. Class III devices require the highest level of safety and effectiveness assurance, and require additional safety measures. Medical devices in this category include life supporting or life-sustaining devices, such as replacement heart valves, implanted cerebellar stimulators, implantable pacemaker pulse generators, endosseous implants, etc.

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