The global medical devices market is expected to post a CAGR of over 5% during the period 2018-2022, according to the latest market research report by Technavio, a market research company with global coverage.
A key factor driving the growth of the market is the increasing prevalence of diseases. The global prevalence of acute and chronic diseases, including cardiovascular, neurological, orthopedic, and respiratory diseases, is increasing significantly. The prevalence of these chronic diseases increases significantly with age. Globally, the aging population is also growing rapidly due to an increase in the average life expectancy. In 2017, approximately 650 million people around the world were aged 65 and above, and the number is expected to increase to around 810 million by 2025. Thus, the increasing prevalence of diseases will drive the global medical devices market growth.
According to Technavio’s report, the increasing market penetration of medical devices in emerging countries will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global medical devices market research report also analyzes other important trends and market drivers that will affect market growth over 2018-2022.
The medical device market has been growing rapidly in emerging countries. By 2022, more than 30% of the global healthcare expenditure is expected to arise from emerging economies. The medical devices market in emerging economies offers opportunities due to significantly high operating margins across the various industry sub sectors. This is primarily due to the large, growing, and increasingly wealthy middle class willing to pay for high-quality medical services that governments have not managed to deliver in the past.
Moreover, medical device companies in emerging markets leverage the low manufacturing and labor costs and generate significant profit margins for investors. In addition, unlike developed economies that are governed by strong government and payor actions in terms of competitive pricing and regulation, emerging markets are fairly benign for healthcare companies. Several emerging economies have an increasing geriatric population and are also struggling with an increase in the prevalence of chronic diseases, which will lead to an increase in the demand for medical devices.
The Americas led the market in 2017 with a market share of close to 49%, followed by EMEA and APAC respectively. However, during the forecast period, the APAC region is expected to witness the highest incremental growth followed by the EMEA region.