Medical Devices Market Size, Share & COVID-19 Impact Analysis, By Type (Orthopedic Devices, Cardiovascular Devices, Diagnostic Imaging, In-vitro Diagnostics, Minimally Invasive Surgery, Wound Management, Diabetes Care, Ophthalmic Devices, Dental Devices, Nephrology, General Surgery, and Others); By End User (Hospitals & ASCs, Clinics, and Others), and Regional Forecast, 2023-2030

The global medical devices market size was valued at USD 512.29 billion in 2022. The market is projected to grow from USD 536.12 billion in 2023 to USD 799.67 billion by 2030, exhibiting a CAGR of 5.9% during the forecast period.

The growing prevalence of chronic diseases and the increasing emphasis of healthcare agencies toward early diagnosis and treatment, is leading to an increasing number of patients undergoing diagnostic and surgical procedures.

• For instance, according to the American Hospital Association (AHA), there were an estimated 33.4 million inpatient admissions in the U.S. in 2021.

The rise in the number of inpatient admissions and the increasing number of surgical and diagnostic procedures is fueling the demand for medical devices, including capital equipment and consumables in developed and emerging countries.

The market share is further augmented by the increasing R&D investments by leading market players to develop technologically advanced equipment, with an aim to cater to the growing demand for innovative devices.

• For instance, Koninklijke Philips N.V. invested an estimated USD 2.49 billion in R&D in 2022 as compared to USD 2.13 billion in 2021. Another leading medical device manufacturer, Medtronic, reported an investment of USD 2.49 billion in R&D in 2021 as compared to USD 2.33 in 2020.

Increasing investment of medical technology companies in research & development and favorable scenarios provided by regulatory authorities for their approval is expected to boost the medical devices industry in the forecast period.

• For instance, according to the 2022 report of the U.S. FDA’s Center for Devices and Radiological Health (CDRH) granted breakthrough designations to 164 devices in 2022, which was around 151 in 2020.

COVID-19 IMPACT

Deferral of Elective Procedures Hampered Market Growth amid Coronavirus 

The outbreak of COVID-19 resulted in decline of elective surgeries and emergency room visits in the hospitals. Procedures that were considered to be less serious or which were not life-threatening, such as dental procedures and orthopedic surgeries, witnessed a noteworthy decline in terms of number of surgeries during the pandemic.

• For instance, according to a 2021 article published by National Center for Biotechnology Information on the impact of COVID-19 pandemic on orthopedic surgery in Chile, there was a decline of 22.8% of orthopedic surgeries during the pandemic with 64% decrease observed in knee arthroplasty and 41% decrease in hip arthroplasty.

The market players offering devices that were prominently used for procedures that were considered elective, such as dental and orthopedic procedures and other surgeries, coupled with diagnostic imaging equipment, witnessed a decline in revenues in 2020 as compared to 2019.

• For instance, Dentsply Sirona generated a net revenue of USD 3.34 billion in the financial year 2020 as compared to the revenue generated in 2019, which is USD 4.02 billion witnessing a decline of 17.1%, owing to the decreased number of dental procedures and visits in the year during the pandemic.


• Similarly, Johnson & Johnson Services, Inc. generated a net revenue of USD 22.96 billion in the financial year 2020 witnessing a decline of 11.6% as compared to the year 2019, wherein the company generated a net revenue of USD 25.96 billion.

On the other hand, the adoption of in-vitro diagnostic testing and treatment for COVID-19 increased the demand of these procedures and the market players offering such devices and related products witnessed a significant growth in the revenue in 2020. For instance, the molecular diagnostics business unit of F. Hoffmann-La Roche Ltd generated USD 3.76 billion in 2020 as compared to USD 1.10 billion generated in 2019, witnessing a growth of 241.8%.

However, in 2021, the number of elective surgeries and inpatient volume bounced back in the countries such as the U.S., Canada, and Germany, which increased the number of orthopedic, dental, and other elective procedures that were cancelled or postponed. The sudden rise in the number of elective procedures raised the demand for the medical devices. Also, the number of approvals of medical devices and introduction of new devices with advanced technologies by the major players in the market propelled the medical devices market growth in 2021.

• For instance, Johnson & Johnson Services, Inc. generated a net revenue of USD 27.06 billion in 2021 witnessing a growth of 17.9% as compared to the previous year.

LATEST TRENDS

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Growing Customer Preference for Wearable Devices to Propel Industry Expansion

The growing emphasis on fitness among adults globally and the increasing focus of regional and national healthcare agencies toward monitoring and diagnosis have been pivotal in creating a higher demand for fitness trackers. Despite these limitations of wearable devices such as security concerns and concerns related to data privacy, there is still a significantly high preference for fitness trackers and activity monitors owing to its easy usability and advantages.

Due to the outbreak of COVID-19 pandemic and rising concerns of the health in the population, the demand for these devices fueled up in the market. For instance, according to a survey conducted by ValuePenguin in March 2022, 45% of the U.S. population wears fitness tracker. Also, approximately 69% of Americans are comfortable wearing these devices if they get discount on their health insurance.

Also, the introduction of advanced models with new features and reduced prices by market players has increased the customer pool for the devices.

• For instance, according to a 2021 article published by RunRepeat, more than 445 million wearable fitness devices were sold in 2020 with an upsurge in the revenue by more than 31% during the pandemic.

This presents a huge growth opportunity for new entrants and established players to focus on this segment and launch new wearable devices to cater to these devices’ growing demand.

DRIVING FACTORS

Rising Prevalence of Chronic Diseases to Surge the Demand for Medical Devices

There is a growing prevalence of chronic disorders, including cancer, diabetes, and other infectious diseases, owing to the adoption of sedentary lifestyles. Healthcare agencies of various countries are focusing on growing the diagnosis and treatment rates through awareness programs. With the rising prevalence and awareness of such conditions among the population, the patient population requiring diagnostic procedures and tests is also increasing.

• For instance, according to the International Diabetes Federation (IDF), an estimated 537 million people in 2021 suffered from diabetes, which is projected to rise to 643 million by 2030 and 783 million by 2045. Also, approximately 1.4 million Americans are diagnosed with diabetes annually.


• Similarly, according to the American Cancer Society, the estimated number of new cancer cases and deaths in 2022 was 1.9 million and 609,360 deaths, respectively.

Also, a rapid rise in the ageing population is increasing the demand for ophthalmic and orthopedic procedures due to the increasing incidence of impaired vision and joint fractures in the elderly population.

• For instance, according to data published by the Osteoarthritis Action Alliance 2021, annual incidence of knee osteoarthritis is highest between the age group of 45-65 years and 45% of the people with osteoarthritis are aged 65 or above.


• Similarly, according to CDC, 1 in 4 American adults have any type of arthritis, and is expected to reach 78 million by 2040. Among all types, osteoarthritis is the most common and affected 32.5 million U.S. adults.

The above mentioned factors when coupled with growing per capita healthcare expenditure in developed and emerging countries and improving reimbursement policies is leading to the rising number of patients undergoing diagnosis and treatment. This is fueling the growing demand for medical devices in these countries.

Shift toward Homecare Settings to Increase the Demand for Portable Devices

The rising prevalence of chronic medical conditions and treatment of patients suffering from these diseases is exerting huge pressure on the healthcare systems of various countries. This led to a significant rise in the economic burden of treating these diseases globally. The overall costs of treating a patient in a hospital inpatient setting are significantly higher and longer hospital stays are associated with a higher economic burden.

• For instance, according to data published by The Johns Hopkins University in 2022, there is approximately 30% cost saving in delivering care to treat in a hospital-at-home setting as compared to treatment at hospital settings.

Due to the increasing economic burden and rising population aged above 60, there is a paradigm shift of preference toward home healthcare services among the population. Additionally, with increasing efforts of key players and healthcare agencies to develop and launch new and easy-to-use medical equipment such as portable and wearable devices for the treatment of chronic diseases, the adoption of home healthcare services is rapidly rising in developed countries.

• In March 2021, Shimmer Research, a global leader in wearable technology applications, launched Verisense Pulse+, a new sensor for the Verisense platform providing photoplethysmogram, galvanic skin response, and an inertial measurement unit. The device can measure clinical trials patients’ heart rate, oxygen saturation, and emotional responses in addition to their activity and sleep levels.

RESTRAINING FACTORS

High Cost of Devices and Inadequate Reimbursement Policies in Emerging Countries to Restrict Market Growth 

The medical device industry has witnessed developments in the past decade in terms of new technologies being implemented and new design modifications prepared. However, these devices' high cost, which includes a comparatively higher acquisition cost and subsequent maintenance costs, leads to an overall increased device cost and ownership. Some of the advanced devices are associated with various other components such as chips, batteries, sensors, and some other accessories, which require periodic replacement.

• For instance, according to an article published by Medical Device + Diagnostic Industry (MD+DI), the cost of daVinci surgical robots range between USD 1.85 million and USD 2.3 million. Also, along with this, the total per year cost of this device's maintenance is around USD 125,000. The high cost of surgical robots is one of the major factors for stagnant adoption rate.

This leads to a comparatively higher cost of ownership to hospital and surgical centers. Additionally, reimbursement for medical devices has also been a restricting factor in the adoption of these devices in emerging countries. Thus, the above factors, along with inadequate reimbursement policies, have been responsible for the comparatively limited adoption of medical devices in emerging countries.

SEGMENTATION

By Type Analysis

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Increasing Prevalence of Infectious Diseases to Fuel the In-vitro Diagnostics (IVD) Segment

Among type, the In-Vitro Diagnostics (IVD) segment is expected to register a higher CAGR owing to the increasing uptake of real-time diagnostic tests for precise diagnosis of chronic and infectious diseases such as diabetes, cancer, HIV/AIDS, and others. The other segment held a dominating share in 2022 owing to the higher demand and adoption of medical clothing, masks, gloves, surgical lights, fetal monitors, and other hospital supplies. The wound management segment is also expected to grow at a significant CAGR due to increasing investment in medical devices companies for introducing novel wound devices and bioactive therapies in the market.

• For instance, in July 2021, Swift Medical raised USD 35 million in series B investment round for the development of technology that uses smartphone camera to capture wound care information.

Additionally, technological advancements in surgical robots and their increasing usage by healthcare providers are key factors expected to drive the minimally invasive surgery (MIS) segment growth during the forecast period. However, the segments of the orthopedic and cardiovascular devices are anticipated to grow at a significant pace owing to a globally increasing patient pool suffering from different cardiac-related and orthopedic disorders.

Also, the increasing incidence of diabetes and retinal disorders among the general population is anticipated to boost the adoption of diabetes care and ophthalmic devices and will subsequently drive market growth during the forecast period.

By End User Analysis

Rising Number of Hospitals & ASCs to Propel the Market Growth

Based on end user, the market includes hospitals & ASCs, clinics, and others. The hospitals & ASCs segment held a dominating share in 2022 due to the increasing number of multispecialty and community hospitals, especially in emerging countries.

• For instance, according to Politics of Saudi Arabia, the country needs 20,000 extra hospital beds by 2030 to meet the need of growing population and improve the healthcare infrastructure of the country. 

Thus, the above factors and growing emphasis of healthcare agencies and government toward the development of healthcare infrastructure and a routine diagnosis and treatment of patients have resulted in raising awareness among the general population and is subsequently propelling the market growth during the forecast period.

The clinics and other segments are expected to grow at a significant CAGR during the forecast period due to increasing funding by public and private players in small and medium-sized clinics and long-term care centers worldwide to improve healthcare infrastructure.

REGIONAL INSIGHTS

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The market size in North America stood at USD 196.17 billion in 2022. The presence of adequate and favorable reimbursement policies, a well-developed healthcare infrastructure, rapid adoption of advanced medical technologies, and key players in the region are major factors primarily responsible for its dominance. This is further augmented by the increasing number of patients undergoing diagnosis and treatment in the region, owing to a rising incidence and prevalence of chronic conditions.

The market in Europe is anticipated to register a significant CAGR owing to increasing healthcare expenditure, well-established infrastructure, and increasing adoption of advanced diagnostic and treatment devices. A strong focus toward a shift of medical care in home care settings and the introduction of portable medical equipment by leading global and domestic players in the region, is poised to drive the growth of the market during the forecast period.

Asia Pacific is expected to grow at a comparatively higher CAGR due to the increasing prevalence of diseases such as cardiovascular disorders, infectious diseases, dental disorders, diabetes, and others, along with the increasing focus of market players to expand its direct presence in emerging countries, including China, India and fulfill the demand of patients in this region. Also, the rising investment and findings by associations and government provide opportunities to emerging players and contributing to growth of the market in the region.

• For instance, in October 2022, NousQ Pte Ltd, a Singapore-based medtech startup, received a grand prize of USD 175,000 for its product CLiKX, a pediatric ear tube insertion device. The company won in the 2022 Asia Pacific Accelerator program organized by MedTech Innovator in partnership with APACMed.

On the other hand, Latin America and the Middle East & Africa are expected to register a substantial CAGR during the forecast period due to rapidly developing healthcare infrastructure in few countries such as Saudi Arabia, Brazil, and others, and the entry of global market players in these regions through direct or indirect presence.

KEY INDUSTRY PLAYERS

Medtronic, Johnson & Johnson Services, Inc., Abbott, and Stryker are the Major Players in the Market

The global market is fragmented, with players such as Medtronic, Johnson & Johnson Services, Inc., Abbott, and Stryker, accounting for a major medical devices market share in 2022. The top market players focus on strategies such as acquisitions, collaborations, and new product developments and launches to strengthen their market position globally.

• For instance, in March 2022, Accelerate Diagnostics, Inc. launched Arc Module and BC Kit for automated rapid and accurate microbial identification for positive blood cultures.

Johnson & Johnson Services, Inc. captured a significant market share in 2022 and is estimated to continue to hold its position in the forecast period due to its strong presence across the world and a vast distribution network. Other prominent players in the market are F. Hoffmann-La Roche Ltd, GE Healthcare, BD, Fresenius SE & Co. KGaA, Boston Scientific Corporation, and Baxter, among others.

LIST OF KEY COMPNAIES PROFILED:

• Medtronic (Ireland)


• Stryker (U.S.)


• Johnson & Johnson Services, Inc. (U.S.)


• Fresenius SE & Co. KGaA (Germany)


• Koninklijke Philips N.V. (Netherlands)


• Abbott (U.S.)


• General Electric Company (U.S.)


• Siemens Healthineers AG (Germany)


• BD (U.S.)


• Cardinal Health (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023 – Abbott received USFDA approval for Proclaim XR Spinal Cord Stimulation (SCS) system to treat painful Diabetic Peripheral Neuropathy (DPN).


• January 2023 – Abbott received USFDA approval for Navitor, latest-generation Transcatheter Aortic Valve Implantation (TAVI) system to treat people with severe aortic stenosis who are at high or extreme risk for open-heart surgery. 


• December 2022 - Johnson & Johnson Services, Inc. announced its acquisition of Abiomed, Inc. The acquisition aimed to accelerate growth in MedTech business and deliver innovative medical technologies to more people around the world.


• November 2022 – Boston Scientific Corporation entered into a definitive agreement to acquire Apollo Endosurgery, Inc. The Apollo Endosurgery product portfolio includes devices used during Endoluminal Surgery (ELS) procedures.


• November 2022 - Siemens Healthineers AG signed a multi-year value partnership agreement with Atrium Health. The strategic agreement will focus on driving access to care in Atrium Health’s service region across the southeastern U.S., improving health equity and enhancing economic mobility.

REPORT COVERAGE

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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, products, and end users. Besides this, it offers insights into the medical devices market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market growth in recent years.

Report Scope & Segmentation