The medical device and diagnostics market is set to grow at 4.5 percent per year (CAGR) between 2012 and 2018, totalling $455 billion in 2018, according to the newly-released EvaluateMedTech World Preview 2013, Outlook to 2018: The Future of Medtech report from market intelligence firm Evaluate Ltd. The report predicts that in vitro diagnostics (IVD) will retain its position as the world’s largest medtech segment in 2018, with global sales totaling $58.8 billion, followed by cardiology and then diagnostic imaging.
The second edition EvaluateMedTech World Preview report provides top-level insight from the world’s financial markets into the expected performance of the medical device and diagnostic industry between now and 2018. The report was released today at AdvaMed 2013 in Washington, D.C., and is available as a free download at www.evaluategroup.com/MedTechWP2013.
While the IVD category holds the greatest market share, neurology has set the pace as the fastest-growing of the top 15 device areas, with an annual growth rate of 6.9 percent between 2012 and 2018. Meanwhile, the diabetic care and orthopedics categories are expected to be the slowest growing of the top 15 device areas, expanding by only 3.4 percent per year (CAGR) between 2012 and 2018.
“Despite the medtech industry having a tough first half of 2013, with M&A deal values and PMA approvals declining, consensus forecasts predict healthy growth in the months and years ahead resulting in a $455 billion market by 2018,” said Ian Strickland, Product Manager of EvaluateMedtech and author of the report. “Within the industry, the leading segment of in vitro diagnostics continues to grow more strongly than the medtech market as a whole, thanks to advances in molecular diagnostics and drugs becoming increasingly linked to diagnostic tests.” In addition to forecasting medtech segment growth and overall worldwide sales, the report also examines key topics including R&D spending, company performance by segment, FDA approvals, M&A deal values and venture financing. Among the key findings: Sales growth in the medtech industry is set to outperform the prescription drug market between 2012 and 2018, with a CAGR of 4.5 percent compared with pharma’s more modest 3.8 percent. Of the top medtech companies, Johnson & Johnson is expected to take home the market-leading spot in 2018 with $33.4 billion in worldwide medtech sales. Global medtech R&D spending is set to grow by 3.9 percent per year to reach $26.7 billion by 2018; Siemens is seen to be the top R&D spender with its investment in new medtech programs forecast to reach $2 billion by 2018. First-time premarket approvals (PMAs) decreased 5 percent to 41 in 2012. So far, the FDA has approved 14 new PMAs in 2013 to the end of August, representing a 42 percent decline over the same period last year. M&A deal value fell by a startling 79 percent in the first half of 2013 compared with the same period in 2012. Deal counts dropped 15 percent. Venture financing fell 14 percent in 2012 to $3.8 billion but expanded 6 percent in the first half of 2013, reaching $2.5 billion. For more information on the 2013 Edition of the EvaluateMedTech World Preview, visit Evaluate Booth 414 at AdvaMed.
The executive summary and full report are available for download at www.evaluategroup.com/MedTechWP2013.