Medtech industry’s revenue will grow faster in the next decade than it did in the previous decade.
Conclusions from a new Frost & Sullivan survey should ease the device industry’s handwringing over what they believe is a dismal future wrought by regulatory uncertainty, governmental meddling and a changing business landscape.
The 2013 Search for Growth survey predicts that the medical device industry will garner $509.25 billion in the next 10 years, up from $271.55 billion in the current decade. That’s a 87.5% upward spike. Compare that to the 77% revenue growth in the previous decade in which the industry raked in $153.40 billion.
In other words, the industry is due to grow faster in the next 10 years despite all the doomsday scenarios presented by opponents of the medical device tax.
Yes, granted the conclusions of the Frost and Sullivan survey are based on responses that include executives who are from other countries, – but the majority of responses in the healthcare industry came from North America – 32% and Europe,Israel and Afrcica – 36% confirmed a Frost & Sullivan spokeswoman.
The survey also showed what percent of executives are interested in some of the megatrends that affect all industries.
- 60% of healthcare industry respondents are interested in new business models where the goal is to create value for many people
- A whopping 81% are interested in health, wellness and wellbeing
- 38% are interested to identify promising overseas markets beyond the BRIC (Brazil, Russia, India, China) nations.
Specifically, in healthcare, executives considered the following to be hot topics:
- 51% said mhealth or mobility in healthcare is the hottest topic
- 45% nominated issues related to the healthcare cloud in the same category.
- 44% said regulatory environments were what they were most interested in
- 39% responded that cancer market outlook was the biggest driver of interest for them
As healthcare is geared towards a personalized medicine model, companion diagnostics will alter drug development and the commercialization process of drug candidates. Combining biomarkers and drugs will result in enhanced therapeutic efficacy and safety.Based on the survey responses, Frost & Sullivan have formulated three predictions for the global healthcare market going forward.
- The healthcare and life sciences industry will consolidate further in this decade, with many big pharma companies seeking alternatives to the blockbuster model.
- The rise of new technologies capable of integrating medical devices into a connected platform will enhance the functionality of devices, reduce the manpower burden and minimize errors.
By Arundhati Parmar, Senior Editor, MD+DI