The medical device industry is one of the biggest industries within the healthcare sector, driven by the continual introduction of new technologies. Recent years have witnessed significant growth in innovative and new technologies which has resulted in the development of state-of-the-art medical devices and growth across the sector.
The global medical device market is currently valued at $228 billion, up from $164 billion in 2010 and projected to reach $440 billion by 2018. It is growing at an approximate 4.4% compound annual growth rate per year. This growth is expected to outpace the prescription drug market by 2018, which is in comparison growing at a rate of 2.5%. Diagnostics are predicted to be the industry’s top segment, achieving global sales of $54.5 billion. Neurology devices are expected to grow the fastest, expanding by 6.1% annually while orthopaedics will grow the slowest at 3.1% (Garde, 2012).
The largest medical device market is the United States, valued at $125.4 billion (espicom, 2015). The U.S. market value represented approximately 38% of the global medical device market in 2012.
The European medical device market is the second largest, valued at €58 billion. The leading EU markets are Germany, France, Italy, the United Kingdom and Spain (Klaas Consulting, 2015). China has recently become the third largest medical device market, growing at an average of 20% annually since 2009 and valued at over $48 billion (export, 2014).
Medical device manufacturers in developed countries are expected to continue to pursue a greater share of their sales revenue from emerging markets like China, India and Brazil. These emerging markets are expected to drive the medical device industry for the next fifty years. Although consumer confidence still lies with western brands, this trend will inevitably shift towards brands from these emerging economies (Master Control, 2014).