Growth Optimism is Evident in the Global Medical Devices Industry, but the Unique Character of Developed and Developing Markets Precipitate Different Growth Drivers

Wednesday 3 July 2013, Amsterdam

A slim majority of respondents across the global medical devices industry have claimed to be ‘more optimistic’ about revenue growth for their company during 2013, according to this recently released report: Global Medical Devices Survey 2013-2014: Market Trends, Buyer Spend and Procurement Strategies in the Global Medical Devices Industry. However, as a result of the currently volatile state of the market, different rates of growth are anticipated between developed markets in the US and Western Europe, and the emerging markets of Asia-Pacific and Latin American countries.

       

Emerging Markets
Respondents in extensive survey identified China, India and China as offering the highest opportunities for growth among emerging markets. This will primarily be driven by the expansion of business activities in these markets, together with stronger economic growth than other regions of the world. Furthermore, changing consumer lifestyles, increased penetration of medical insurance products, and a rise in disposable income have increased the demand for quality healthcare services, which in turn is expected to increase the demand for medical equipment and other support services.
 
Developed Markets
Singapore, Taiwan and Hong Kong, the US, the UK, Germany, and South Korea have been identified as the most important regions for growth amongst developed markets. Although concern over the implementation of healthcare reforms in 2013 has reduced growth optimism in the US, growth prospects are still high amongst developed countries. With an increase in the aging population, high unmet medical needs, and increased incidence of lifestyle diseases (including cardiovascular diseases, diabetes, hypertension, and obesity), the US medical device industry continues to grow at a brisk pace.


This report is the result of an extensive survey drawn from an exclusive panel of leading companies from the medical devices industry. It provides the reader with a definitive analysis of the industry outlook, and explores how opportunities and demand are expected to change in 2013-2014. It examines:

• Revenue growth expectations: projects revenue growth expectations of key industry stakeholders.
• Market-specific growth opportunities: identifies top growth regions so that companies can allocate their marketing activities and budgets effectively.
• Mergers and acquisitions: expectations surrounding merger and acquisition activity, and core influencing factors.
• Capital expenditure: identifies the change in capital expenditure of a medical devices industry buyer or supplier company to provide balanced future growth with capital returns.
• Leading business concerns: identifies leading business concerns and subsequent efforts to negate them.
• Procurement expenditure trends: tracks the procurement budgets of buyer companies and forecasts the possible change in spend.
• Factors for supplier selection: illustrates the critical factors influencing supplier selection.  

This will facilitate:

• Informed business decisions through the understanding of business confidence
• The driving of revenues through proper understanding of future product investment areas and key growth regions
• The identification of the key actions required to maintain and win buyer business
• The formulation of effective sales and marketing strategies through the identification of changes in buyer budgets and the direction of future spending
• Improved promotion of your business by aligning your capabilities and business practices with customers’ changing needs

Uniquely positioned to provide compelling, actionable market intelligence thanks to its rigorous research methodology – which encompasses internal resources, extensive desk research, market modelling, and the input of its panel of leading industry executives – ICD is able to combine research on general industry drivers and trends with experts’ attitudes and behaviours, making Global Medical Devices Survey 2013-2014: Market Trends, Buyer Spend and Procurement Strategies in the Global Medical Devices Industry required reading for those serious about reacting to market trends and capitalizing on opportunities in the global medical devices market.

Further insights include:

• The top three key changes expected for 2013 include: the introduction of ‘new products and services’, ‘expansion in the current market and abroad’, and ‘improvement in operational efficiency’.
• Overall, medical device industry respondents consider ‘focus sales efforts on generating new business’, ‘trail of new products in the market’, and ‘adapt product portfolio and positioning’ as important strategies for 2013.
• In general, executives from the medical devices industry expect to see increased levels of consolidation, whilst 55% of respondents anticipate at least an increase in M&A activity in 2013.
• A total of 44% of respondents from global medical devices manufacturer companies, and 49% from supplier companies, anticipate a minimum of a 2% increase of their current workforce.