The medical technology (medtech) market is forecasted to grow at 4.4 percent per year between 2011 and 2018, to reach $440 billion, according to a new report from EvaluatePharma, the EvaluateMedTech World Preview 2018. This growth will outpace the global pharmaceutical Industry, which has long over shadowed the medtech sector. This report finds that medtech is expected to grow 2.5 percent per year between 2011 and 2018.
EvaluateMedTech World Preview 2018 forecast that the fastest growing segment among the top device sectors is neurology, which is set to grow at 6.1 percent per year to $7.3 billion. However, the in-vitro diagnostics sector is expected to be the world's largest medical technology segment, with sales of $54.5 billion. While Orthopedics is forecast to be the slowest growing segment, expanding 3.1 percent per year between 2011 and 2018.
In an interview in the Burrill Report (Burrill), Anthony Raeside, head of research for EvaluatePharma said "The medtech sector is diverse but tends to have clearer value propositions than the pharmaceutical sector when it comes to convincing payers to part with their cash…Medtech will continue to benefit from emerging market investments that are lifting standards of care, while cost conscious developed markets will continue to invest in more efficient machines, systems and procedures, which offer less hospital time and better patient outcomes."
In addition to assessing the overall growth of the medical technology market, the report also looked at key growth areas, performance of market leaders by segments and the performance of marketed and pipeline products by segments. Some of the interesting results of this report are:
- When it comes to global medtech sales, Johnson & Johnson will hold the top spot as the number one medtech company in 2018, with forecasted global medtech sales of $37.8 billion representing an 8.6 percent global market share. The company will also remain the top medtech R&D spender in 2018, with R&D expenditure forecast to reach $2.1 billion.
- Roche looks to be the clear market leader within the in vitro diagnostics sector in 2018 with sales of $9.9 billion and an 18 percent market share.
- Medtronic will remain the number one cardiology company with global sales of $10.4 billion in 2018 and a market share of 21 percent.
- Johnson and Johnson's acquisition of Synthes in June 2012 will allow the company to command a 30 percent market share of the Orthopedics market by 2018.
- Medtech M&A deal value slumped 46 percent in the first half of 2012 compared to the first half of 2011. However, investors see potential within the medtech market as the total deal value of medtech venture financing increased by 9 percent to $1.9 billion in the first half of 2012.