The medical industry is one of the most vital and rapidly growing sectors in the world today. It plays a crucial role in the overall health and well-being of individuals and populations around the globe. The global medical devices market, valued at US$ 550 billion in 2021 and expected to reach US$ 850 billion by 2030 with a compound annual growth rate (CAGR) of 5.5% during the forecast period 2022 to 2030, is driven by a number of factors including an aging population, increasing rates of chronic diseases, and technological advancements.
One of the main drivers of growth in the medical industry is an aging population. As people live longer, the demand for healthcare services and medical devices increases. According to the World Health Organization (WHO), the number of people aged 60 or over is projected to double by 2050, reaching 2 billion. This demographic shift is expected to lead to a significant increase in the incidence of chronic diseases such as diabetes, cardiovascular disease, and cancer.
Another major factor driving growth in the medical industry is the increasing incidence of chronic diseases. Chronic diseases are the leading cause of death and disability globally and account for more than 70% of deaths worldwide. The WHO estimates that chronic diseases will account for almost three-quarters of all deaths by 2020. The increasing incidence of chronic diseases is expected to lead to a significant increase in demand for medical devices and healthcare services.
Technological advancements are also playing a major role in driving growth in the medical industry. The development of new technologies such as telemedicine, artificial intelligence, and 3D printing is transforming the way healthcare is delivered. For example, telemedicine allows patients to receive medical care remotely, which can help to improve access to healthcare in remote or underserved areas. Artificial intelligence and machine learning are also being used to improve the accuracy of diagnostic tests and to develop new drugs and therapies.
The medical devices market is expected to experience strong growth in the coming years, presenting opportunities for companies operating in the medical industry and investors looking to capitalize on the sector's strong growth prospects. The global medical devices market is segmented into diagnostic and monitoring devices, therapeutic devices, and surgical instruments. The diagnostic and monitoring devices segment is expected to account for the largest share of the global medical devices market in 2023. This segment includes devices such as glucose monitoring devices, blood pressure monitors, and diagnostic imaging equipment.
The therapeutic devices segment is expected to grow at the highest CAGR during the forecast period. This segment includes devices such as pacemakers, implantable cardioverter defibrillators (ICDs), and drug delivery devices. The increasing incidence of chronic diseases and the growing geriatric population are expected to drive the growth of this segment.
The surgical instruments segment is expected to grow at a moderate CAGR during the forecast period. This segment includes devices such as surgical instruments, surgical energy devices, and surgical navigation systems. The increasing number of surgeries and the growing demand for minimally invasive procedures are expected to drive the growth of this segment.
The global medical devices market is highly fragmented and competitive, with a large number of small and large players operating in the market. Some of the key players in the global medical devices market include Medtronic, Philips, GE Healthcare, Siemens Healthineers, and Stryker. These companies are focusing on strategies such as mergers and acquisitions, partnerships, and collaborations to expand their market presence and increase their share of the global medical devices market.
In addition to the market trends, the medical device industry is also heavily regulated by governments around the world. In the U.S., the Food and Drug Administration (FDA) oversees the regulation and approval of medical devices. Similarly, in Europe, the European Medicines Agency (EMA) plays a similar role. These regulations ensure the safety and efficacy of medical devices for patients.