The Future of MedTech Is Solid, Despite a Disappointing Year

The medical device and diagnostics market is set to grow at a compound annual growth rate (CAGR) of 4.5% per year between 2012 and 2018, totaling USD 455 billion in 2018. These are the latest finding from market intelligence firm Evaluate (London, United Kingdom).

The EvaluateMedTech World Preview 2013 report predicts that in vitro diagnostics (IVD) will retain its position as the world’s largest medtech segment in 2018, with global sales totaling USD 58.8 billion, followed by cardiology, and then diagnostic imaging. But while the IVD category holds the greatest market share, neurology has set the pace as the fastest-growing of the top 15 device areas, with a projected annual growth rate of 6.9% between 2012 and 2018. The diabetic care and orthopedics categories are expected to be the slowest growing of the top 15 device areas, expanding by only 3.4% per year between 2012 and 2018.

Among the additional key findings of the report are that sales growth in the medtech industry will outperform the prescription drug market, with a CAGR of 4.5% compared with pharma’s more modest 3.8%. Of the top medtech companies, Johnson & Johnson (New Brunswick, NJ, USA) is expected to hold the market-leading spot in 2018, with USD 33.4 billion in worldwide sales. Global medtech spending on research and development (R&D) is set to grow by 3.9% per annum, reaching USD 26.7 billion by 2018; Siemens (Munich, Germany) is seen to be the top R&D spender with its investment in new medtech programs forecast to reach USD 2 billion by 2018.

“Despite the medtech industry having a tough first half of 2013, with merger and acquisition deal values and approvals declining, consensus forecasts predict healthy growth in the months and years ahead,” said report author Ian Strickland, Product Manager of EvaluateMedtech. “Within the industry, the leading segment of in vitro diagnostics continues to grow more strongly than the medtech market as a whole, thanks to advances in molecular diagnostics and drugs becoming increasingly linked to diagnostic tests.”

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