It’s one of the fastest-growing, most complex, and most challenging industries out there. The last decade brought unprecedented growth through state-of-the-art equipment and an innovation-fuelled landscape. According to BCC Research estimates, the North American market alone is expected to reach 344.9 billion by 2027. The medical device industry is an intimidating battlefield, but it’s one that it pays to know about.
Competition is fierce, but getting ahead of the curve can make all the difference. That’s why we’re breaking down the medical devices landscape, analyzing the key trends and top companies within the field.
Emerging trends within the medical devices industry
Interoperability
Interoperability is the future of technology – which, consequently, makes it the future of medical devices. Sharing data, particularly within healthcare settings, is key to improving functionality and efficiency. Interoperability reduces the time and money spent on expensive devices or data transfers, helping cut costs for struggling hospitals. Medical workers can track a patient’s history, ensuring care that is informed by a patient’s complete and individual medical history. It’s a win-win for all.
The medical device plug-and-play interoperability program is an important step toward integrating medical devices and IT systems in clinical environments. The International Organization for Standardization (ISO) and the Institute of Electrical and Electronics Engineers (IEEE) are also working to make interoperability standard practice in healthcare. Devices that can operate seamlessly within a larger IT network will be the future of MedTech.
Affordability
It’s no secret that healthcare systems are strapped for cash. As populations increase in both size and age, one thing is certain: healthcare must be affordable. New technology should make systems more efficient as well as reduce the cost of providing healthcare. With emerging countries making up a huge portion of the target market, cost-effective innovations have gained newfound importance. EvoCam, a product designed for emerging markets, costs only $2,500, a fraction of the cost of clinical-grade endoscopes used in the US.
Multifunctionality
Gone are the days of highly specialized technical devices. Not only are they costly to maintain and limited in the number of conditions they can treat, but they also take up precious space within hospitals. This is giving rise to multifunctional devices, which pass the cost-savings on to the patient. Even patients who depend on remote self-care prefer multi-purpose devices, that can treat numerous ailments.
Top 10 medical device companies
The medical devices market is intense. As companies vie to increase their market share and reach the growing demand in Asia-Pacific, tighter regulations emerge that make product development trickier. The landscape is undergoing intense changes as the Affordable Care Act comes to fruition, but who are the leading companies within the medical devices industry?
Abbott has the second-largest medical device revenue of all companies profiled by BCC Research. The company has a strong patient monitoring product portfolio that includes wireless patient monitors, remote patient monitors and blood glucose monitoring systems for personal use. The company invests significant amounts in R&D of novel medical devices. As of December 2021, Abbott had 135,000 employees.
Becton Dickinson, or BD, is a major player in the global medical device market. BD has operations in around 190 countries across the globe, with a strong market presence in the U.S. In 2021, BD reported an annual revenue of $20.25 billion. Revenue jumped by 18.3% compared to the previous year ($17.117 billion).
Stryker is a leading medical device company that operates its business through two core segments: orthopedic and spine, and MedSurg and neurotechnology. Some of its major endoscopy products include passport robotic trocars, HD 3 chip cameras, and single-portal arthroscopy systems. This expanding firm completed its acquisition of Vocera Communications Inc as recently as 2022.
Johnson & Johnson is a globally recognized healthcare company with three core business segments: consumer, pharmaceutical, and medical devices. Recording net revenues of $93,775.0 million in 2021, Johnson is one of the largest medical device companies around today and recorded the third highest revenues of the medical devices companies profiled.
Medtronic recorded the highest amount of revenue for medical devices in 2021, making it one of the most profitable companies profiled. Medtronic focuses on niche areas of telehealth services and telemonitoring devices with an aim to integrate health management solutions focused on innovation.
In April 2021, the company employed more than 95,000 full-time employees. In FY22, the company invested $2,493.0 million.
Siemens Healthcare GmbH is a leading global healthcare company that manufacture medical technology. The company focuses on delivering high-quality and affordable patient care.
Siemens has a global network and is a pioneer in technological innovation. Operations in more than 180 countries, joint ventures with international companies and major acquisitions have contributed to its brand power. However, strict government policies and economic fluctuations lead to slow progress, especially in operations. Despite this, it’s still one of the strongest medical device companies in the world.
Roche was founded in 1896 and is engaged in the manufacture of devices and chemicals for medical research and diagnostics. As of December 2021, the company had 100,920 employees worldwide. In FY2021, the company invested $16,191.5 million in R&D.
General Electric, through its subsidiary GE Healthcare, is a leading provider of medical imaging equipment and information technologies. Technology innovation, demand for productivity-based technology, services and IT/cloud-based solutions are strengthening the presence of GE Healthcare in the market.
Cardinal Health manufactures or sources nearly 400,000 unique products to support patients across the continuum of care. As of December 2021, the company had 46,500 employees worldwide. Continued policy debates around cost, quality and access offer both substantial challenges and exciting opportunities to Cardinal Health. Innovative advertising solutions have improved its value in the revenue segment.
Supreme quality, operational excellence, and innovation are the key strengths of Philips Healthcare. As leaders in diagnostic imaging, image-guided therapy, patient monitoring, health informatics, consumer health and home care, the company earns its place as one of the top businesses within the medical devices space. The year-on-year increase in sales is largely driven by the image-guided therapy and diagnostic imaging divisions of the company.
Medical Devices Industry: Competitive Landscape
BCC Research provides unmatched insight into the healthcare sector. We cover the broad spectrum of the industry, from pulmonary drug delivery systems to green hospitals, helping to deliver actionable insight to those with stakes in the sector.
Our 2023 update on the medical devices competitive landscape provides businesses and organizations with an invaluable guide for navigating this cut-throat space. Download your complimentary overview to gain an insight into the report’s contents or purchase it in full here.
Alternatively, consider becoming a member of the BCC Research library to gain access to our entire catalogue of reports on healthcare. Enquire below today.