There has been a rapid increase in the prevalence of infectious diseases in 2020. The increasing prevalence of chronic diseases has supported the global medical devices market’s growth. The sudden emergence of severe infections such as the novel coronavirus is expected to drive the demand for medical devices globally. The demand for hospital supplies, in-vitro diagnostic devices, and respiratory care devices has prominently shot up since the emergence of COVID-19 across various countries. This demand is expected to continue for combating the pandemic and importantly to avoid the risk of emergence and spread of similar infections. The rising prevalence of chronic diseases such as diabetes and cancer is expected to be a major driver of the medical devices market as well. Increased working hours, limited physical activity, and unhealthy food habits are the primary causes of such diseases. The high prevalence of chronic diseases also increases the vulnerability to other contagious infections such as coronavirus infections. Hence, this will further increase the demand for medical devices used in the diagnosis, prognosis, and treatment of several, eventually boosting diseases, driving the medical devices market.
THE MEDICAL DEVICE MARKET: SIZE AND SHARE
The medical devices market size reached nearly $456.9 billion in 2019, having accelerated at a compound annual growth rate (CAGR) of 4.4% since 2015. The market was expected to decline from $456.9 billion in 2019 to $442.5 billion in 2020 at a rate of -3.2%. The decline is mainly due to lockdowns imposed by governments across the world that caused hindrance in the supply chain in the medical devices manufacturing industry. However, there is a surprisingly exceptional increase in the manufacturing of the ventilators that are used to treat COVID-19 patients. The medical devices market is expected to recover and grow at a CAGR of 6.1% from 2021 and reach $603.5 billion in 2023. This is mainly because as explained, beyond 2020, an increase in the incidences of infectious and chronic diseases will drive the market growth. Analysis of the medical device market by country revealed that North America accounts for about 39%, the largest share in the global market.
TRENDS SHAPING GROWTH
Global medical device industry trends that shape this growth include the companies that began repurposing their production lines to manufacture medical supplies that are in towering demand to combat the coronavirus, such as hand sanitizers, face masks, personal protective equipment (PPE), ventilators, etc. For instance, liquor manufacturing company AirCo started focusing on production facilities to making hand sanitizers. New alcohol brands Bev and Endless West also joined the manufacturing push.
Talking about Canada, INKSmith, a startup that was creating design and tech tools accessible for kids, moved towards making face shields. 3D-printing companies like Massachusetts-based Markforged and Formlabs are both making personal protective equipment like face shields and also, nasal swabs to use for COVID-19 testing. Other than this, large-scale investments in health monitors and relevant mobile apps from medical device manufacturers, technology companies, and other investors are also empowering the market, and medical device companies need to collaborate with such technology companies to develop and market devices to monitor and track the health of individuals for more effective diagnoses and treatments of patients.
GLOBAL MEDICAL DEVICE MARKET AND ADVANCEMENTS IN HEALTHCARE
The Global Medical Device industry has been regulated across the globe and offers various new challenges and growth opportunities. The recent detection of deadly epidemics like H1N1, Ebola has completely changed the market demand for advanced medical devices. World Health Organization (WHO) also has provided the guidelines for nations and regions to follow the practices for best manufacturing of medical devices so that it can ensure the deliverance of good quality, efficacy, and safety in terms of medical facilities. The collaboration of innovative technologies with existing health technologies to provide better health treatment and facilities is the chief priority for the health care industry.
In 2015, Qualcomm has announced to invest in the development of internet-connected inhalers for certain respiratory diseases. Biological-based technologies such as Live Cell Analysis and Gene transfer technology have been developed in recent years. Such advancements in the healthcare industry are anticipated to positively impact the expansion of the medical device business across the globe.
The implementation of big data in the health care industry is taking over the entire global medical device market and expecting promising opportunities in near future. The ongoing digital transformation of the market has streamlined the services and emphasizes qualitative care. This data-driven medical service has significantly increased the investment in the R&D sector. The collaboration of major verticals such as pharmaceuticals, data analytics & services has vast scope in the development of the healthcare industry which eventually will boost the growth of the medical device market.
KEY CHALLENGES FACED
Consumer awareness is the key factor to sustain the global market for a medical device. Increasing market competitiveness and the scope of strengthening the infrastructure facilities can raise investment in the medical industry. The popularity of wearable medical devices & portable devices to detect diabetes at an early stage among consumers has increased the demand for the medical technology sector.
The lack of proper supplies of medicines in the laboratories and lack of medically trained staff are the main obstacle for the healthcare industry. It is a major concern primarily in underdeveloped and developing nations in case of detection of any epidemic. Lack of awareness, appropriate resource availability, lack of proper diagnostics, and poor quality of health services has significantly affected the major part of the African region.