Medical devices are instruments and equipment used for medical purposes such as diagnose, prevention, monitoring or treatment of diseases. Some examples of medical devices include oxygen masks, hospital beds, surgical equipment, thermometers, blood pressure monitors and glucose meters. The use of such devices helps in improved medical treatment and patient care. There is an increasing need for medical devices across the world due to rising healthcare costs and demand for self-care at home.
The global Medical Devices Market is estimated to be valued at US$ 3,253.3 Mn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Home healthcare offers immense growth opportunity to the medical devices market. Growing geriatric population, rising prevalence of chronic diseases and need for cost-effective treatment options are fueling demand for home-based healthcare services globally. Medical devices play a crucial role in enabling home healthcare by allowing remote monitoring of vital health parameters and facilitating self-administration of treatment. This reduces healthcare costs significantly by avoiding expenses related to hospital visits and stays. With growing preference for home treatment, the demand for related medical devices is expected to increase substantially over the coming years.
Porter's Analysis
Threat of new entrants: Moderate to high capital requirements and stringent regulatory approvals present barriers for new entrants. However, opportunities exist in niche segments.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products and need for innovation.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as raw materials are commonly available and pricing is competitive.
Threat of new substitutes: Threat is moderate to high as new technologies enable development of novel products that provide comparable outcomes.
Competitive rivalry: Intense due to the presence of global players and need to continuously innovate.
SWOT Analysis
Strengths: Growing aging population and chronic diseases drive demand. Established distribution networks and brand recognition of key players.
Weaknesses: High R&D costs and stringent regulatory pathways. Dependence on reimbursement policies and healthcare reforms.
Opportunities: Expanding into emerging markets. Personalized and preventive care open new avenues.
Threats: Price controls and healthcare cuts affect profitability. Shift to low-cost alternatives and generics.
Key Takeaways
The global medical devices market is expected to witness high growth driven by rising incidence of target diseases and improving access. The market size is projected to reach US$ 3,253.3 Mn by 2024.
North America currently dominates driven by superior healthcare infrastructure and spending. However, Asia Pacific is poised to grow at the fastest pace led by China, India, and other developing nations due to increasing healthcare expenditures, westernization, and large patient pools.
Key players operating in the medical devices market are Medtronic Plc, Johnson & Johnson, General Electric Co., Fresenius Medical Care AG & Co. KGaA, Philips Healthcare, Siemens AG, Becton, Dickinson and Co., Cardinal Health Inc., Stryker Corp., and Baxter International Inc. Players are focusing on new product launches, acquisitions, and geographical expansions to strengthen their market presence.
