Medical Sales. key facts. Key Statistics: Medical Device Industry. medical device industry
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1 Medical Sales key facts Key Statistics: Medical Device Industry medical device industry
2 breakdown of healthcare expenditure in Europe 2013 Inpatient & outpatient care, other 75.5% Pharmaceuticals & other medical non-durables 17% Medical technology 7.5% Medical technology of 7.5% is represented by: Medical devices (including imaging) 6.7% In vitro diagnostics 0.8% The Medical Device market is forecast to grow, from $12 billion in 2013 to $17.5 billion by 2020, at a CAGR of 4.8%. In 2012, the major market shares were ophthalmic devices ($1.4 billion), wound care management ($1.1 billion), cardiovascular devices ($1.1 billion) and drug delivery devices ($1 billion). A medical device, in European regulatory terms, is defined as any instrument, apparatus, appliance, material or other article, whether used alone or in combination, including the software necessary for its proper application intended by the manufacturer to be used for human beings for the purpose of diagnosis, prevention, monitoring, treatment or alleviation of disease, handicap or bodily process. The UK has a strong medical device industry base, employing nearly 50,000 people and supporting the employment of many more. The medical technology sector in the UK is widely dispersed across the country; concentrations of economic activity based on turnover and employment are identifiable in the West Midlands, East of England and the South East. The West Midlands continues to be home to the highest number of medical technology companies and the UK presently has 3113 medical technology companies.
3 medical technology key statistics based upon manufacturer prices World medical technology market by region, based upon manufacturer prices European medical technology market by region, based upon manufacturer prices USA 39% Europe 28% Japan 10% China 5% Russia 2% Canada 2% Brazil 2% Other 12% Germany 27% France 16% UK 11% Italy 10% Spain 5% Netherlands 4% Switzerland Sweden Belgium Austria Other 14%
4 world s top 20 medical device manufacturers revenue in billions, July 2013 company name revenue rank # company name revenue 1 Johnson & Johnson $27.43 billion 11 Danaher $8.51 billion 2 GE Healthcare $18.29 billion 12 BD $7.70 billion 3 Siemens Healthcare $17.54 billion 13 Boston Scientific $7.25 billion 4 Medtronic $16.20 billion 14 B Braun $6.67 billion 5 Baxter International $14.20 billion 15 Essilor $6.59 billion 6 Philips Healthcare $13.19 billion 16 St Jude Medical $5.50 billion 7 Covidien $9.85 billion 17 Novartis (Alcon) $5.48 billion 8 Abbott Labs $9.79 billion 18 3M Healthcare $5.16 billion 9 Cardinal Health $9.60 billion 19 Zimmer $4.47 billion 10 Stryker $8.66 billion 20 Terumo $4.27 billion
5 relevance of medical technology in society Patients must receive the most appropriate medical technology for them in the long term; as a patient s safety is the industry s main concern. Nevertheless, risk must be objectively balanced with the potential advantages of launching new and innovative technology, but, of course, all medical devices must be adequately assessed. pharamaceuticals The pharmaceutical market in the UK was estimated at $24.1 billion in 2012 and is expected to reach approximately $31.7 billion by 2020 with a projected Compound Annual Growth Rate (CAGR) of 3.5%. medical devices The medical devices market size was approximately $12 billion in 2012 and is expected to reach approximately $17.5 billion by 2020 with a projected CAGR of 4.8%. prospects for leading countries in the medical device industry USA Japan Germany, France, UK, Italy and Spain (EU5 nations) BRIC nations - Brazil, Russia, India, and China Regulatory, demographic and commercial developments worldwide will influence the market, especially fast-rising demand in emerging markets. China is the third largest world market for medical devices, set to rise to second, (China s medical devices market is expected to grow to US$53.7 billion by next year, 2015,) while Mexico and Brazil are rapidly expanding too, as is India; these are the markets that medical device manufacturers will need to bear in mind. Europe s medical device industry presently demonstrates that more innovative talent strategies are needed in order to deliver solutions which not just merely improve patients health but in addition lessen in general healthcare costs. A proactive talent strategy is therefore crucial, for example, companies should endeavour to glance outside of their own business to improve their leadership bench-strength and to remain competitive while coping with high-levels of change. The USA currently accounts for about 40% of the global spend on medical equipment. Germany, Japan, France and Italy all account for more than the UK spend which is around of the total global spend, taking into account NHS, private health and home spend. Globally, the leading manufacturers reflect this market pattern with the majority of leading firms being US based. Important firms globally are also based in Japan, Germany and Switzerland.
6 issues affecting the manufacturing & selling of medical devices Strong government support across major international markets - driving growth Market driven by an aging population Market susceptibility to economic pressures International expansion - targeting emerging national markets Comparative effectiveness research as an added expense social drivers Social drivers help determine which technologies may be required and play a role in the success or failure of a medical device. The perception of any product is critical to its acceptance by the medical and patient communities. social factors include: Ageing population Improved life expectancy increases the demand for health technologies and increases the potential market for medical devices; the ratio of health and social care staff available to care for older patients will decrease. A demand for equipment that is easier to use by older staff/carers may also arise. Large number of participating companies - increasing rivalry among competitors. Many new UK-based medical device companies initially focus on the UK market. The NHS is not only the majority provider in the UK market (supplying around 80% of UK health needs) but is also reputed to be the world s largest healthcare supplier. 80%
7 Cordant Medical Sales Be Specialised
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