Medical Devices Market

Global Medical Devices Market Size (2022 to 2027)

The size of the global medical devices market was valued at USD 465.55 billion in 2022. This value is further estimated to be growing at a CAGR of 4.9% from 2023 to 2028 and will be worth USD 625.32 billion by 2028 from USD 488.36 billion in 2023.

Global Medical Devices Market Share Insights:

• Based on type, the orthopedic devices segment had 6.75% of the global market share in 2021.
• Based on end-user, the hospital and ASCs segment accounted for the largest share of the global market in 2021.
• North America held 41.8% of the global market share in 2021.
• The European region is expected to be valued at USD 171.2 billion by 2027.
• The APAC region is anticipated to grow at a CAGR of 6.8% from 2022 to 2027.

A medical device can be an instrument, an implant, or another device used to diagnose, treat, or prevent disease or other medical conditions. Surgical instruments, artificial heart valves, pacemakers, joint replacements, diagnostic imaging equipment, such as X-rays and ultrasounds, and PPE, such as masks and gloves, are examples of medical devices. These devices play a vital role in treatment procedures and in saving patients' lives. Depending on the risk level they can showcase on the patients, these medical devices are classified into two types: Class I medical devices and Class II medical devices. Class II devices are considered higher risk than Class I medical devices. Implantable pacemakers and prosthetic heart valves are examples of Class II medical devices, and bandages and examination gloves are examples of Class I devices. Medical devices must follow the regulatory authorities' instructions and be approved to get eligible for marketing and selling. Regulatory authorities such as U.S. FDA strictly monitor and evaluate medical devices to approve them for commercialization.

MARKET DRIVERS:

The growing patient population suffering from chronic diseases propels the global medical devices market growth.

WHO says an estimated 41 million people die from chronic diseases every year. Approximately 71% of the deaths worldwide are linked to chronic diseases every year, and out of these, the majority of the deaths are due to diseases such as cardiovascular diseases, cancer, and diabetes. The chronic disease population has been growing significantly in the last few years. The trend is expected to grow further in the coming years due to the growing aging population and increasing adoption of sedentary lifestyles. The growing chronic disease patient population is expected to increase the need for medical devices to manage the growing disease burden. Medical devices are vital in managing various chronic diseases such as CVD, cancer, and diabetes. For instance, medical devices such as glucose monitoring devices, insulin pumps, and inhalers are used aggressively to treat chronic diseases such as diabetes and respiratory diseases. Likewise, medical devices such as pacemakers, stents, and prosthetics are used to treat cardiovascular diseases.

Technological developments are further fuelling the medical devices market’s growth rate.

By using the latest technological developments, the manufacturers of medical devices have created manufactured medical devices that are cost-effective, efficient, accurate, and can provide improved patient outcomes. For instance, digital health technologies such as mHealth applications, telemedicine, and wearable medical devices have brought several changes to healthcare delivery in recent years. Using these developments, patients take treatment from the comfort of home by communicating with healthcare providers, and this has resulted in effective healthcare delivery at reduced healthcare costs. In addition, technological developments such as 3D printing, artificial intelligence, machine learning, big data, robotics, and others have helped the medical devices market to pose a healthy CAGR in recent years.

The growing healthcare expenditure is favoring the growth rate of the global medical devices market.

According to the data published by the Centers for Medicare and Medicaid Services, the U.S. healthcare expenditure is expected to reach USD 6.2 Trillion by 2028. The growing aging population, increasing healthcare coverage, and rising number of technological developments in the medical devices industry are resulting in increasing healthcare expenditure and favoring the growth of the medical devices market. The growth in healthcare expenditure is leading to innovative solutions for patients to offer effective healthcare delivery.

In addition, factors such as the growing demand for minimally invasive surgeries, the growing global aging population, the rising need for medical devices to address the growing burden of various diseases, and the increasing demand for home healthcare devices are propelling the medical devices market growth. Furthermore, an increasing number of initiatives and growing support by various governments in favor of medical devices, growing adoption of medical tourism in developing countries, and rising usage of wearable medical devices are promoting the growth rate of the medical devices market.

MARKET RESTRAINTS:

High costs associated with medical devices are majorly hampering the global medical devices market growth. Due to these costs, medical devices are unaffordable to many patients and small and medium-sized healthcare facilities, which are limiting the adoption and accessibility of medical devices in underdeveloped and developing countries. The stringent regulatory requirements and approval process of medical devices are further hindering the medical devices market growth. Issues associated with product recalls and safety concerns are impeding the growth of the medical devices market. Poor reimbursement policies for medical devices in some countries are diluting the growth rate of the overall market. The scarcity of skilled medical professionals in some countries is impacting the medical devices market growth negatively. Issues with the shortage of raw materials and supply chain disruptions for the manufacturing and distribution of medical devices are showcasing a negative impact on global market growth slightly. Furthermore, the presence of alternative therapies to medical devices and difficulties in the adoption of advanced medical technologies are limiting the growth rate of the medical devices market.

Impact of COVID-19 on the global medical devices market:

The COVID-19 pandemic had a mixed impact on the global medical devices market. The sudden surge in the number of people diagnosed with coronavirus worldwide has promoted the need for medical devices such as respiratory devices, ventilators, masks, PPE kits, and others. In addition, during the COVID-19 pandemic, the usage of digital health technologies such as telemedicine and remote patient monitoring has grown significantly. The growth rate of the medical devices market has seen an acceleration. On the other hand, during the peak days of COVID-19, priority has been given to elective surgical procedures; all non-essential surgical procedures were kept on hold, which negatively resulted in the companies that manufacture medical devices for essential surgical procedures. In addition, to curb the spread of the virus, many governments have announced lockdowns, travel bans, and temporary shutdowns of manufacturing plans, which resulted in supply chain disruption and reduced production of medical devices, hampering the market's growth rate. Likewise, COVID-19 had a mixed impact on the global medical devices market. However, considering the growing habituation towards the new normalization, uplifting of the restrictions, and reducing the impact of COVID-19, the global medical devices market is anticipated to pose significant growth during the forecast period.

REPORT COVERAGE:

This research report on global medical device market has been segmented and sub-segmented based on type, end-user, and region.

Global Medical Devices Market – By Type:

• Orthopedic Devices
• Cardiovascular Devices
• Diagnostic Imaging
• IVD
• MIS
• Wound Management
• Diabetes Care
• Ophthalmic
• Dental
• Nephrology
• General Surgery
• Others

Based on type, the orthopedic devices segment accounted for a considerable share of the global medical devices market in 2022. The growing patient population suffering from orthopedic conditions and increasing R&D efforts by manufacturers to develop effective medical devices to treat associated diseases have contributed to the segment's growth.

On the other hand, the IVD segment is anticipated to showcase the highest CAGR among all the segments in the global market for the forecast period. The growing incidence of chronic and infectious diseases is one of the major factors propelling segmental growth.

The MIS segment is another lucrative segment in the global medical devices market and is predicted to witness a healthy CAGR during the forecast period. The growing preference for minimally invasive surgeries from healthcare professionals and the rising adoption of technological developments drive the segment's growth.

Global Medical Devices Market – By End-User:

• Hospitals & ASCs
• Clinics
• Others

Based on the end-user, the hospitals and ambulatory surgical centers segment captured the major share of the global medical devices market in 2022, and the domination of the segment is likely to continue during the forecast period. YOY growth in the number of hospitals being constructed worldwide is fuelling the demand for medical devices and resulting in segmental growth. In addition, the growing support that hospitals are receiving from governments is promoting the growth of the hospitals and ASCs segment.

Global Medical Devices Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Geographically, the North American medical devices market occupied the largest share of the worldwide market in 2022. The domination of the North American region is expected to continue throughout the forecast period, and the regional market growth is majorly driven by the presence of well-established healthcare infrastructure, the presence of key market participants, and a growing number of R&D activities toward medical devices. The U.S. led the North American regional market in 2022, followed by Canada. The growing adoption of technological developments in the manufacturing of medical devices and an increasing number of people suffering from life-threatening diseases favor the medical devices market in the United States.

The European medical devices market is one of the potential regions for medical devices worldwide. The usage of medical devices is growing significantly in European countries such as Germany, the U.K., and France. The manufacturers of medical devices, such as Siemens Healthineers, Philips, and Medtronic, are putting significant efforts into meeting the growing demand for medical devices. In addition, factors such as growing technology penetration in the manufacturing of medical devices, growing incidence of various diseases among the European population, and rising focus on preventive healthcare are contributing to the growth of the European medical devices market. However, Europe has a stringent regulatory framework, one of the major challenges to the European medical devices market. Regulatory authorities include European Medicines Agency (EMA), Medical Devices Directive (MDD), the in-vitro Diagn Directive (IVDD), and General Product Safety Directive (GPSD) have issued guidelines, and each medical device has to comply with the guidelines to get eligibility for the commercialization.

The Asia-Pacific medical devices market is anticipated to grow the fastest worldwide during the forecast period. The healthcare infrastructure in the Asia-Pacific is witnessing numerous developments, which are expected to promote the market for medical devices in this region. In addition, the growing incidence of various diseases among the aging population in the Asia-Pacific region is fuelling the need for medical devices, which is expected to result in regional market growth. Japan, China, and South Korea have recently played a notable role in the APAC medical devices market and are expected to hold a major share of the regional market during the forecast period. Japan is home to hi-tech medical devices and healthcare innovation. The medical devices market in China is growing considerably owing to the growing aging population and increasing middle-class population. South Korea is expected to showcase a healthy CAGR in the coming years due to the growing R&D activities around precision medicine, genomics, and regenerative medicine.

The Latin American medical devices market is anticipated to hold a considerable share of the global market during the forecast period.

The medical devices market in MEA is expected to grow at a moderate CAGR in the coming years.  

KEY MARKET PARTICIPANTS:

Medtronic, Stryker, Fresenius SE & Co. KGaA, Koninklijke Philips N.V., F. Hoffmann-La Roche Ltd, General Electric Company, Siemens Healthineers AG, BD, Boston Scientific Corporation, Johnson & Johnson Services, Inc. are a few of the leading companies operating in the global medical devices market.

RECENT MARKET DEVELOPMENTS:

• In July 2021, Abbott announced the launch of a pea-sized, life-saving device for babies with hole-in-the-heart defects. The device was first introduced in India, focusing on hospitals with a functioning neonatal critical care unit (NICU).
• In January 2021, Smith & Nephew partnered with Movemedical to expand its inventory automation solutions and improve customer experience.
• In April 2021, the Indian government made it simpler to import critical medical devices like nebulizers, oxygen concentrators, and oxygen canisters by lowering the procedures for clearance under the Legal Metrology Act (Packaging Rules 2011).
• In January 2021, the abdominal aortic aneurysm (AAA) model was developed by Koninklijke Philips N.V., offering clinicians a more patient-friendly option than the existing standard of care for managing AAA patients.