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, 2022-2029

The global medical devices market size was valued at USD 488.98 billion in 2021 and is projected to grow from USD 495.46 billion in 2022 to USD 718.92 billion by 2029, at a CAGR of 5.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with medical devices experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -1.4% in 2020 as compared to 2019. 

The growing prevalence of chronic diseases and the increasing emphasis of healthcare agencies toward early diagnosis and treatment are 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 United States in 2021.

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

This is further augmented by increasing investments from leading market players in the R&D for the development of technologically advanced equipment, with an aim to cater to the growing demand for innovative devices.

• For instance, Stryker invested an estimated USD 1.23 billion in R&D in 2021 as compared to USD 0.98 billion in 2020. 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 2021 report of U.S. FDA’s Center for Devices and Radiological Health granted breakthrough designations to 213 devices in 2021, which was around 130 in 2019.

COVID-19 IMPACT

Deferral of Elective Procedures to Dwindle Market amid Coronavirus

The outbreak of COVID-19 pandemic has resulted in decline of elective surgeries and emergency room visits in hospitals. Among the procedures considered to be less serious or which are not life-threatening, such as dental procedures, orthopedic surgeries witnessed a significant decline in the 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 orthopedic, dental procedures, and other surgeries along with diagnostic imaging equipment witnessed a significant 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 i.e., 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 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 of COVID-19 increased the demand for these procedures. 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 U.S., Canada, and Germany, which increased the number of orthopedic, dental, and other elective procedures that were canceled or postponed. The sudden rise in the number increased the demand for the devices in the market. Also, the number of approvals of medical devices and introduction of new devices with advanced technologies by the key players in the market propelled the growth of the market 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 is a Prominent Trend

There are a few limitations of wearable devices such as security concerns and concerns related to data privacy. Despite these limitations, there is still a significantly high preference for fitness trackers and activity monitors owing to its easy usability and advantages. 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 higher demand for fitness trackers.

Due to the outbreak of COVID-19 pandemic and rising concerns of health among the population, the demand for these devices surged in the market. According to various independent surveys conducted in the U.S., an estimated 21.0% of the adult population in the country owned a fitness tracker in 2019.

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

• 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.

DRIVING FACTORS

Rising Prevalence of Chronic Diseases to Boost Demand for Medical Devices

There is a growing prevalence of chronic disorders, including diabetes, cancer, and other infectious diseases, owing to the adoption of sedentary lifestyles and other factors. Also, healthcare agencies of various countries are focusing on increasing the diagnosis and treatment rates through the growing number of 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.


• Similarly, according to the American Cancer Society, the estimated number of new cancer cases in 2021 was 1.9 million.

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

• For instance, according to a 2021 data published by Osteoarthritis Action Alliance, 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.

The above mentioned factors when coupled with growing per capita healthcare expenditure in developed & emerging countries and improving reimbursement policies are 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 is Boosting 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 has 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 a 2021 article published by the American Journal of Managed Care (AJMC), in a recent randomized trial evaluating patients treated in a hospital setting and patients treated in a hospital-at-home setting, there was 19% cost reduction in home care management.

Due to 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 industry has witnessed noteworthy developments in the past decade regarding new technologies being implemented and new design modifications, among others. However, these devices are expensive, which includes a comparatively higher acquisition cost, and subsequent maintenance costs, thereby leading 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 a 2020 article published by Academy of Managed Care Pharmacy, in the U.S, the average cost of an insulin pump is around USD 4,500 to USD 6,500 per device. Also, along with this, the total per year cost of this device's accessories, which include batteries and syringes is around USD 1,500.

This leads to a comparatively higher cost of ownership to the patient. 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 during 2022-2029

Among types, the In-Vitro Diagnostics (IVD) segment is expected to register a higher CAGR, owing to increasing uptake of real-time diagnostic tests for precise diagnosis of chronic and infectious diseases such as diabetes, cancer, and HIV/AIDS. The others segment held a dominating share in 2021, owing to 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 by medical devices companies in introducing novel wound devices and bioactive therapies in the market.

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 the medical devices market growth during the forecast period.

By End-User Analysis

Rising Number of Hospitals & ASCs to Propel the Market

Based on end-user, the market includes hospitals & ASCs, clinics, and others. The hospitals & ASCs segment held a dominating share in 2021 due to the increasing number of multispecialty and community hospitals, especially in emerging countries. Thus, the above factors and growing emphasis of healthcare agencies and government toward a routine diagnosis of patients and their timely treatment have resulted in raising awareness among the general population, thereby subsequently propelling the market growth during the forecast period.

The clinics and others segments are expected to grow at a significant CAGR during the forecast period due to increasing funding by public and private players in small & 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 188.14 billion in 2021. 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 are 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, and diabetes, along with 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.

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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 a few countries, such as Saudi Arabia and Brazil, 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 Major Players of the Market

The global market is fragmented, with players, such as Medtronic, Johnson & Johnson Services, Inc., Abbott, and Stryker, accounting for a major share in 2021. The top market players focus on strategies such as acquisitions, collaborations, 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 medical devices market share in 2021 and is estimated to continue to hold its position over the forecast period due to its strong presence across the world and a vast distribution network. Other prominent players in the market are Siemens Healthineers AG, F. Hoffmann-La Roche Ltd, GE Healthcare, BD, Fresenius SE & Co. KGaA, Boston Scientific Corporation, and Baxter.

LIST OF KEY COMPANIES PROFILED:

• Medtronic (Ireland)


• Stryker (U.S.)


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


• Fresenius SE & Co. KGaA (Germany)


• Koninklijke Philips N.V. (Netherlands)


• F. Hoffmann-La Roche Ltd (Switzerland)


• General Electric Company (U.S.)


• Siemens Healthineers AG (Germany)


• BD (U.S.)


• Boston Scientific Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2022 – Medtronic received the U.S. FDA approval for its Intellis rechargeable neurostimulator and Vanta recharge-free neurostimulator for the treatment of chronic pain associated with diabetes peripheral neuropathy.


• November 2021 – Siemens Healthineers launched NAEOTOM Alpha, the world's first photon-counting technology CT scanner, cleared for clinical use in the U.S. and Europe.

REPORT COVERAGE

An Infographic Representation of Medical Devices Market

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The global medical devices 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 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