Despite global challenges and escalating consolidation, the medical device and technology market will eclipse $500 billion in sales by 2021, according to a new analysis.
The optimistic outlook comes despite the economic slowdown in China and various financial challenges in the European Union like Brexit and, most recently, the troubles of banking powerhouse Deutsche Bank. Meanwhile, large device makers have consolidated amid a downturn of medical device sales.
But a new report by market research firm Evaluate expects global medical device and technology growth to be 5% or more annually until 2022, reaching nearly $530 billion. “The sector is already seeing a resurgence of smaller acquisitions on which start-ups, a significant source of disruptive new technologies, depend,” Ian Strickland, EvaluateMedTech product manager said of the report, released at the Advanced Medical Technology Association (AdvaMed) annual MedTech meeting this week in Minneapolis.
In recent years, large medical device makers have largely seen flat or falling sales. From 2014 to 2015, Evaluate said 12 of the 20 largest companies in the “medtech” space had negative growth, contributing to investor pressure to merge and cut costs as health insurers and government health programs squeeze payments for devices.