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Current location: Home » Medical Devices Market
A medical device is any instrument, apparatus, appliance, material or other article, whether used alone or in combination, including the software necessary for its proper application intended by the manufacturer to be used on human beings for the purpose of:
- diagnosis, prevention, monitoring, treatment or alleviation of disease
- diagnosis, prevention, monitoring, treatment or alleviation of or compensation for an injury or handicap
- investigation, replacement or modification of the anatomy or of a physiological process control of conception
And which does not achieve its principal intended action in or on the human body by pharmacological, immunological or metabolic means but which may be assisted in its function by such means.
Source: European Union Medical Device Definition
The Medical Devices Market
The Medical Devices sector of the healthcare industry encompasses a wide range of technologies from the simplest wound dressing to highly sophisticated diagnostic and therapeutic equipment.
Major device companies do not typically invest heavily in internal, early stage, R&D. Instead they tend to grow their product portfolio by licensing and acquisition of "near market" opportunities. Typically, therefore, device ideas are originated by individual clinicians or academics. A successful minority of these innovations are then developed through small companies, who then licence-on or sell their products to be marketed through larger conglomerates.
In 1998 the total worldwide market for medical devices was $145bn. The US market is growing at an annual compound rate of 9%, whilst non-US markets have also grown significantly during the last two decades and now represent 60% of the total. The fastest growing markets are Latin America and Asia (excl. Japan), with rates averaging 15%. This trend will continue with the expectation that the world's emerging markets will account for 25% of sales by 2005. The total device market in 2006 is expected to be $260bn.
Key Characteristics of the Medical Device Industry
- Rapid Innovation
- Short product life cycles
- Competitors leap-frogging each other with more advanced, user friendly technology
Geographical split of Worldwide Medical Devices Market
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Country
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Market Size
(2000) Billion €
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% of World Market
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Health Expenditure
% GDP
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per capita Spend on Medical Devices (€)
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Growth Rate
(2000)
|
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USA
|
60
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37.5
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13.9
|
125
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7%
|
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EU
|
41
|
25.6
|
5.7
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66
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5.5%
|
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Japan
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24.5
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15.3
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7.1
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116
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4%
|
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Rest of World
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34.5
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21.6
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-
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-
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15%
|
|
Total
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160
|
100
|
-
|
-
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6%
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Sources: EUCOMED, AdvaMED 2000, World Bank 2000 World Development Indicators (In vitro diagnostic devices have been excluded from these market data)
Key device market segments ranked by 2001 sales revenues are illustrated below
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Rank
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Category |
2001 Sales
(€ billion)
|
|
1
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In vitro diagnostic devices |
23.77
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|
2
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Minimally invasive surgery devices
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19.02
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3
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Orthopaedic devices
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17.05
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|
4
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Wound care products
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15.08
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5
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Cardiovascular devices
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14.50
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|
6
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Ophthalmic devices |
14.04
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Calculated from data in Source 1: Currency conversion rate $1= €1.16
Key Medical Device Market Segments and 2001 Sales
The worldwide devices market is expected to grow by an average of 7% per annum to reach a value of €341 billion in 2010.
Source: Medical & Healthcare Marketplace Guide 2001-2002, Dorland Healthcare Information calculated from data in Source 1: Currency conversion rate $1= €1.16
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