Medtech sales projected to surpass $500 billion by 2022

Anecdotal evidence that I have gathered in speaking with suppliers to the medical technology sector attest to its robust financial health. Steady, reliable growth has been a hallmark of the medtech industry over the years and is a key reason that so many plastics processors seek a foothold in medical when attempting to diversify their customer base. A new market report from EvaluateMedTech (London) confirms that the industry is in a solid position into the next decade.

The total value of the global medtech market is expected to reach $529.8 billion by 2022, growing at an annual rate of 5.2% over the next seven years, according to EvaluateMedTech World Preview 2016, Outlook to 2022. The report also found that worldwide medtech R&D expenditure is forecast to grow 4.3% annually to reach $34 billion by 2022.

Commenting on the report in Forbes, Bruce Jansen notes that “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.”

In the first half of the year, Evaluate said merger and acquisition activity dropped nearly 80% to $17 billion, adds Jansen. Nevertheless, the calming of the M&A scene does not pose a problem for expected continued growth, according to EvaluateMedTech’s Ian Strickland, speaking at the annual AdvaMed meeting in Minneapolis this week, reports Jansen. AdvaMed is a trade association that represents approximately 80% of medical technology firms in the United States.

The report is available as a free download (registration required) from EvaluateMedtech.