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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.
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.
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.
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.
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.
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.
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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.
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.
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.
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.
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.
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.
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.
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.
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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.
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.
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.
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.
North America Medical Devices Market Size, 2022 (USD Billion)
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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.
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.
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.
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.
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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.
CAGR of 5.9% from 2023-2030
Value (USD billion)
By Type, End User, and Region
By End User
Fortune Business Insights says that the global market stood at USD 488.98 billion in 2021 and is projected to reach USD 718.92 billion by 2029.
In 2021, the North American market size stood at USD 188.14 billion.
The market will exhibit steady growth at a CAGR of 5.5% during the forecast period.
Among types, the others segment will lead the market.
The rising prevalence of chronic disorders and the growing awareness among the general population are the key drivers of the market.
Medtronic, Johnson & Johnson Services, Inc., Abbott, and Stryker are the markets top players.
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