Global Medical Device Market Research
As with most industries,the global medical device industry (a segment of the healthcare industry) was not untouched by the economic crisis,though it has not deterred the industry's overall growth.Smaller firms,unable to pick up the slack of product development costs previously covered by venture capital investors - now made more cautious by the economic slump - were obliged to curb their activity.Some other small firms,however,chose to merge with larger firms,thereby continuing technological advances without bearing the full burden of the cost.Domestic and international acquisitions and mergers allow a cross-border sharing of resources and knowledge,facilitating continued medical technology innovation despite the tough economic climate.
More evident challenges to the medical device sector include taxes on products in overseas markets as well as incongruous foreign regulatory controls and varying implementation of standards.
Medical Equipment Key Players & Regional Markets
The medical device industry covers awide spectrum of productsused in the treatment of patients,,includingcardiovascular devices,,in-vitro diagnostic equipment,,diagnostic devices,,orthopedic devices,,respiratory devices,,dialysis devices,,endoscopic devices,,patient monitoring equipment,dental equipment,ophthalmic device,andsurgical equipment.In the US,medical devices are recognized as such in a book of public pharmacopeial standards,called the United States Pharmacopeia–National Formulary (USP– NF),and its supplements.
Top names in the industryinclude such medical technology leaders asJohnson & Johnson,,Abbott Labs(ranked 69),,Medtronic(ranked 158),,Baxter(ranked 192),,Boston Scientific,GE Healthcare Technologies,Becton Dickinson,St.Jude,Stryker Corporation and Beckman Coulter.
Regionally speaking,theUSis the leading competitor,holding in excess of 40% of the world medical device market,reports Exvere private investment bank.The US is not only an important player in manufacturing and exporting medical device products but also creates about half of global market demand.It imports lower-technology medical device products,with a notable share coming from China,and tends to export higher-technology device products.While the US may see its stakes in the global market rise in the event of taxes being lowered,practices standardized and standards harmonized,it would also see more staunch foreign competition from countries that,even if they lag behind in innovation or expertise,could compete through the cheaper production of lower-technology medical devices.
Growing domestic production of lower-technology devices not just inChina but also in India,Korea,Taiwan,and Brazilwill help those nations become relative competitors to the US in the future;though the US is set to remain at the top of the higher-technology device market for some time.
While demand for medical devices in developed regions such asJapan,Canada,the EU and the USremains steady with annual growth rates of between 3% and 5%,developing regions are to prove lucrative for US exports,with demand in countries such as India and China showing more than twice the rate of developed countries.China's sizeable population and healthy economic growth make it an increasingly promising target market.India equally shows potential as an export market for the US medical device sector due to its ever-more affluent population and strong accompanying private healthcare system.
At the momentGermanyand theNetherlandsarekey competitors to the USfor market share in higher-technology medical devices.However,some companies,such as Dutch firm Philips Electronics,are not completely independent players in so far as a good deal of their production is carried out in the US.
Medical Device Product Life Cycle
To enter the marketplace,medical devices must comply with pre-defined product life cycle parameters intended to maximize patient safety and ensure the highest quality standards.The product life cycle can be divided into three main phases.The first phase,or early product life cycle,consists of a product concept with its relevant market strategy and financing.The second phase,or the middle product life cycle,involves manufacturing and validation through clinical trials along with packaging and labeling.Lastly,the late product life-cycle phase consists of not only the market launch of the medical device but also market analysis that subsequently impacts on successive generations of the product.