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Medical Device Industry Trends To Watch

Medical Device Industry Trends To Watch
Medical Device Industry Trends To Watch
Each year new medical technologies enter the market to deliver accurate and efficient clinical results. The industry offers growth opportunities to medical developers in major medical device categories including:

● Surgical Implants And Instruments

● Electro-Medical Equipment

● In-Vitro Diagnostic Equipment And Reagents

● Dental Goods

● Irradiation Apparatuses

● Medical Supplies

A medical device developer’s profitability depends on innovation, demand, supply and competition. Medical device consulting firms play a key role in the company’s growth with market research, competitive analysis consulting, exit strategy, medical technology commercialization strategy and other key consulting services.

The Consulting Firms Consider The Following Five Factors And Trends That Can Influence A Medical Device Devloper’s Profitability.

1. Demographics

2. Healthcare Spending

3. Third-Party Coverage And Reimbursement

4. Regulatory Regime And Competitive Factors

5. Emerging Global Markets


The following factors drive major medical device demand:

● Aging Population

● Increasing Life Expectancy

● Declining Fertility Rate 

In 2060, the US elderly population will be 95 million. In 2014, this population segment had $19,000 per person in healthcare consumption. It was nearly one third of the national healthcare consumption. Europe will be the world’s oldest region with 29% elderly population. This population segment has and will have high healthcare consumption. 

Healthcare Spending

In 2017, total US healthcare spending was $3.5 trillion. In 2027, the total US healthcare expenditure will be $6.0 trillion. In 2017, 17.9% of the GDP was healthcare spending. National health expenditure will increase in coming decades. In 2027, it will be 19.4% of the GDP.

Increasing healthcare consumption will have a significant, positive influence on medical device development companies. Medical device developers delivering innovative medical technologies to deliver accurate and efficient patient outcomes at reduced cost will drive increased revenue. The legislative developments will also have influence on healthcare spending, demand and medical device pricing.

Third-Party Coverage And Reimbursement

Physicians are the primary customers of medical device developers after the device is approved by the medical device value analysis committee. Physicians select medical devices for clinical use and their patients. Typically, customers do not interact with manufacturers. Insurers reimburse healthcare providers. Private and government programs and other third-party payers are attempting to constrain healthcare costs by reevaluating their payment policies. Several accountable care organizations will limit hospital reimbursement growth.

As a result, hospitals will scrutinize their healthcare purchases and adopt:

● Higher Medical Device/Procedure Benefits Evaluation Standards

● Disciplined Bargaining Stance.

This will offer new opportunities to medical device companies developing affordable medical technologies. 

Regulatory Regime And Competitive Factors

Through continual product innovations drive growth, competitive analysis consulting for competitive landscape evaluation delivers current and future market understanding. Medical device competitive analysis helps in identifying competing technology’s limitations, technology improvement opportunities, unmet needs and underserved market segments. Competitive analysis consulting also helps in pricing and increasing market penetration and market share. Continual product innovations require significant research and development.

Government regulations foster innovative environment in the following two ways:

● Firms With A New Medical Innovation Can Secure A Competitive Advantage With Patents And Intellectual Property Protection. This Further Secures The Highest Return On Investment.

● These Regulations Govern:

                ○ Design And Development

                ○ Testing

                ○ Approval Or Premarket Clearance

                ○ Registration And Listing     

                ○ Medical Device Manufacturing

                ○ Labeling And Storage

                ○ Marketing

                ○ Export And Import

                ○ Sales And Distribution

                ○ Post Market Surveillance

Emerging Global Markets

With increasing global healthcare spending, more opportunities are available in the domestic market and countries outside the US. According to the World Bank, all regions have increased healthcare spending. The US medical device companies are projected to remain the largest contributor to the industry in terms of innovation, revenue and volume.

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