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 & ASC’s, Clinics, and Others), and Regional Forecast, 2021-2028

The global medical devices market size was USD 432.23 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with medical devices witnessing a negative impact on the adoption rate across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 3.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 455.34 billion in 2021 to USD 657.98 billion in 2028 at a CAGR of 5.4% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The growing prevalence of chronic diseases, and the increasing emphasis of healthcare agencies towards early diagnosis and treatment, is leading to an increasing number of patients undergoing diagnostic and surgical procedures. According to the American Hospital Association (AHA), there were an estimated 36.2 million inpatient admissions in the U.S. in 2019. 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.

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This is further augmented by the increasing investments by 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, Johnson & Johnson Services, Inc. invested an estimated USD 12.15 billion in R&D in 2020. Another leading medical device manufacturer, Medtronic, reported an investment of USD 2.33 billion in R&D 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 this industry in the forecast period. For instance, according to the U.S FDA database, around 59 devices were approved by the FDA during the 2019-2020 period.

Deferral of Elective Procedures to Dwindle Market amid Coronavirus

Leading players operating in the global market witnessed a significant impact on demand for various medical devices, where some segments witnessed a sharp increase in demand while others witnessed a significant decline. Companies focusing on market segments, including in-vitro diagnostic devices, nephrology, and diabetes, witnessed comparatively higher demand for their products and devices during 2020.

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

• For instance, Johnson & Johnson Services, Inc. generated a revenue of USD 23.0 billion in 2020, which was a decline of 11.6% as compared to 2019. Medtronic, another leading player, registered a decline in revenues by 5.4% in FY 2020 and a significant decline of 26% in Q4 2020, as compared to 2019, primarily attributed to the covid-19 impact. 

LATEST TRENDS

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Growing Customer Preference for Wearable Devices is a Prominent Trend

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

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. This demand has been further fueled by the outbreak of COVID-19 and the introduction of advanced models by market players, with new features, at competitive pricing, which has attracted customers. 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 Boost the 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. This has led to a significant rise in the economic burden of treatment of these diseases on the healthcare systems of various countries.

• For instance, according to the International Diabetes Federation (IDF), an estimated 463 million people in 2019 suffered from diabetes, which translates to an estimated 9.3% of the global population. This figure is projected to reach 10.2% by 2030


• According to the National Cancer Institute, the incidence rate of cancer in the U.S. was estimated to be around 442 per 100,000 people in 2020. A few countries, including Australia (468 per 100,000), and New Zealand (438 per 100,000), were among the top-5 countries with the highest incidence of cancer.

Also, a rapid rise in the geriatric population is supplementing ophthalmic and orthopedic devices' growth due to the increasing incidence of impaired vision and hip fractures in the elderly population. For instance, an estimated 303 million people in the world were suffering from osteoarthritis of the knee, according to various national and regional databases.

Healthcare agencies of various countries are focusing on increasing the diagnosis and treatment rates through the growing number of awareness programs. This, along with growing per capita healthcare expenditure in developed and emerging countries, is leading to the rising number of patients undergoing diagnosis and treatment. This is fuelling the growing demand for medical devices in these countries.

Shift towards Homecare Settings is Boosting the Demand for Portable Devices

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

• For instance, according to the Centers for Disease Control and Prevention (CDC), the economic burden of treatment of diabetic foot ulcers in the U.S. was approximately USD 13 billion to USD 15 billion each year. 

Citing the efforts by healthcare agencies to shift patients towards home care settings, market players are actively investing in research and development of advanced and easy-to-use medical equipment for the treatment of chronic disorders. Their efforts have resulted in the introduction of portable and wearable devices that can be easily used by patients at home without the need of professional assistance.

RESTRAINING FACTORS

High Cost of Medical Devices to Restrict the Market Growth

The medical device industry has witnessed noteworthy developments in the past decade regarding new technologies being implemented and new design modifications, among others. 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, 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, syringes, etc., 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 these type of devices in emerging countries.

SEGMENTATION

By Type Analysis

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In-vitro Diagnostics (IVD) Segment to Grow at a Faster Pace during 2021-2028 Period

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, HIV/AIDS, etc. The other segment held a dominating share in 2020 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's 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 medical devices market growth during the forecast period.

By End-User Analysis

Hospitals & ASC Segment Held a Dominant Share in 2020

Based on end-users, the market includes hospitals & ASC’s, clinics, and others. The hospitals & ASC segment held a dominating share in 2020 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 towards a routine diagnosis of patients and their timely treatment have resulted in raising awareness among the general population and is subsequently propelling the market's 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 medical devices market size in North America stood at USD 168.76 billion in 2020. 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 towards 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, etc., 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.

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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 few countries such as Saudi Arabia, Brazil, etc., 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 like Medtronic, Johnson & Johnson Services, Inc., Abbott, Stryker accounting for a major share in 2020. 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 December 2020, Koninklijke Philips N.V. acquired the U.S. based cardiac diagnostics and monitoring company, i.e., BioTelemetry, to expand its offerings of remote care products

Johnson & Johnson Services, Inc. captured a significant medical devices market share in 2020 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 Siemens Healthineers AG, F. Hoffmann-La Roche Ltd, GE Healthcare, BD, Fresenius SE & Co. KGaA, and Boston Scientific Corporation, and Baxter, among others.

LIST OF KEY COMPANIES PROFILED:

• Medtronic (Dublin, Ireland)


• Stryker (Kalamazoo, United States)


• Fresenius SE & Co. KGaA (Bad Homburg, Germany)


• Koninklijke Philips N.V. (Amsterdam, Netherlands)


• F. Hoffmann-La Roche Ltd (Basel, Switzerland)


• General Electric Company (Chicago, United States)


• Siemens Healthineers AG (Munich, Germany)


• BD (Franklin Lakes, United States)


• Boston Scientific Corporation (Marlborough, United States)


• Johnson & Johnson Services, Inc. (New Brunswick, United States)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• January 2021 – Smith & Nephew partnered with Movemedical, a U.S based company, to expand its inventory automation solutions and improve customer experience.


• January 2021 – Koninklijke Philips N.V. launched the abdominal aortic aneurysm (AAA) model, providing physicians a more patient-friendly solution compared to the current standard of care for managing AAA patients.

REPORT COVERAGE

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's growth in recent years.

Report Scope & Segmentation