BCC Research Blog | Industry Analysis and Business Consulting

The Impact of Covid-19 On Medical Devices Industry

Written by Olivia Lowden | Sep 4, 2023 1:00:00 PM

The far-reaching effects of COVID-19 have introduced the world to a new normal, but the biggest impact has undoubtedly been in healthcare. In the long term, it has permanently shaped the future of healthcare delivery. In the short term, medical technology was rapidly shifted to become digitalized, allowing for a more collaborative product development process and remote patient care.

The impact of the pandemic will be studied and evaluated for years to come, particularly in the medical device industry. Strategies were developed to overcome the issue of remote healthcare, including a temporary waiver of premarket notification conditions under section 510(k) of the Food, Drug, and Cosmetic Act, issued by the FDA in the USA.

Despite the challenging conditions, the global market for medical device technologies reached $639.0 million in 2021. BCC Research expects considerable market growth to continue, with forecasts predicting a compound annual growth rate (CAGR) of 7.1% to reach $953.5 million by 2027.

Impact of Coronavirus

COVID-19 has caused a humanitarian crisis unlike any other. Due to the virus's incredible demand for ventilators, diagnostic tests, personal protective equipment (PPE), and other essential medical supplies, the MedTech sector took center stage. In addition to the steps taken to quickly increase manufacturing capacity and capabilities, MedTech leaders were forced to look outside their typical sector boundaries to investigate innovative solutions to shortages. These solutions include partnerships with businesses outside of the sector, open-source equipment design, and the deployment of medically trained staff to support public health needs.

The pandemic emphasized the need for medical devices and protective equipment, with PPE and ventilators feeling the biggest squeeze. Product companies began switching to manufacturing these devices to help ease demand pressures. In vitro diagnostics emerged as another crucial component of the medical device as health authorities across the globe concentrated efforts on testing to control the spread of novel coronaviruses. And now that COVID-19 vaccines are widespread, syringes are also in demand.

Some companies have found significant success, their coffers bolstered by the unpredicted revenue stream afforded by medical devices. However, other firms still struggle to adapt. The lesson here is that agility and adaptability are vital to taking full advantage of such an opportunity for innovation.