GLOBAL MEDICAL DEVICE MARKET OUTLOOK, 2018 - PRESENTED AT AUSMEDTECH MAY 2018 - SQUARESPACE
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Global Medical Device Market
Outlook, 2018
Presented at AusMedTech
May 2018
Global Healthcare Revenue by Sector in 2017 and 2018
Total Healthcare Industry: Revenue Forecast by Sector, Global, 2017 and 2018
2017
1,500
1,246 2018
1,195
Revenue ($ Billion)
1,000
500 371 390
65 72 108 115
29 31
0
Pharma and Medical Medical Imaging In-Vitro Healthcare IT
Sector
Biotech Technologies Equipment Diagnostics
Growth Rate
4.3% 5.2% 4.4% 10.0% 6.4%
(2017–2018)
2017 2018 Growth Rate
Total Healthcare Industry
1,768.61 1,853.83 4.82%
($ Billion)
Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
Global Healthcare Revenue by Region in 2017 and 2018
Total Healthcare Industry: Revenue Forecast by Region, Global, 2017–2018
North Asia-Pacific
Europe
America 22.8% (excluding Japan)
38.5% 18.5%
714.52 Bn 422.04 Bn
1.0% 342.39 Bn
3.1% 11.1%
Japan
9.4%
Latin
174.40 Bn
America
7.4% 2.3%
Row
137.08 Bn 3.4%
10.9% 63.40 Bn
13.8%
2018 Percent of total global share Projected 2018 market size in $Billion 2018 Projected Growth Rate
Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
Global Medical Device Industry Market Snapshot, 2017–
2018
Medical Device Industry: Revenue Forecast, Global, Medical Device Industry: Percent Sales by Segment, Global,
2017–2018 2018Aesthetics, 1.9%
Neuro,
Respiratory - Anesthesia, Uro-Gyno, 1.9% Robotics-Navigation, 1.9%
Growth Rate: 5.2% 2.8%
4.7%
Audiology, 4.7%
Revenue ($
Others*, 28.1%
Billion)
$370.8 B $390.1 B Patient Monitoring, 5.5%
Wound Care, 5.7%
Ortho, 13.2%
Ophthalmology, 8.5%
Cardio, 9.5%
Minimally Invasive, 11.6%
Medical Device Industry: Percent Sales by Region, Global,
Brazil India
ROW 2018
19.8% United States
1.1% 1.2%
39.0%
Spain
2017 2018 2.0%
Russia
2.1% France
4.0%
UK China
4.0% 8.1% Germany Japan
*Others include durable medical equipment, hospital supplies, consumables, and 9.9% 8.9%
sterilization and decontamination equipment. Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
4
Global Medical Device Industry—Top 3 Segments
Snapshot, 2017–2018
Medical Device Industry: Top 3 Segments Revenue and Growth Medical Device Industry: Revenue Split by Segments and
Forecast, Global, 2017–2018 Growth Potential, 2018
80.0
Equipment/ Consumables/Acc
60.0
Revenue ($
Services
Implants essories
Billion)
40.0 Revenue Split 60% 35% >5%
20.0 Growth Rate 2-5% 4-8% 10-15%
49.0 51.3 42.0 45.3 35.0 36.9
0.0
Orthopedic Endoscopy Cardiac
2017 2018
Services Analytics
Medical Device Industry: Top 3 Segments Revenue Share By Region,
Global, 2018 Incremen Data
tal Management
Orthopaedic Endoscopy Cardiac Products
United States 62.5% 44.7% 40.1%
Product Product Product Product
Europe 22.5% 23.8% 28.1%
Asia Pacific 11.0% 19.5% 24.0%
Rest of World 4.0% 12.0% 7.8% Product Service Product Solution
Supplier Provider Supplier Provider
Note: All figures are rounded. The base year is 2017. Source: Frost & Sullivan
5
Analysis of M&A Deals in Global Medical Device Industry,
2017
Where are Companies Placing Their Bets?
• Business expansion, increasing market share, market consolidation, and technology expansion to leverage first-mover
advantage are the main reasons driving the acquisitions for tier-1 companies.
• Growth by acquisition is still a medical device company’s go-to strategy, one trend that is expected to remain stable over the
next 3 to 5 years. In-house R&D investments have declined in 2017, globally.
Notable Consolidation Mega Merger Notable Company
In the recent years five M&A in 2017 in Top 10 medical Most notable is Essilor's merger
out of the top 30 device companies was driven by with Luxottica Group, owner of
companies have been Product portfolio strengthening. the Ray-Ban and Oakley brands,
acquired hence Abbott acquiring St Jude medical to in a $49 billion deal that would
consolidating the top 10 strengthen its Cardiac portfolio and create a giant in the eyewear
players with 30- 40 percent Medtronic acquiring Crospon to industry
of the global medical strengthen its Endoscopy portfolio
device market.
Transformation in the Medical Device Industry Ecosystem—2018
Growth Stars
Key Areas of Activity in 2018
On Body In-Home Community In-Clinic In-Hospital
Home Medical Mobility Lab-on-a Chip Connected
Wearables
Devices Equipment
Smart Consulting/ Supply Chain Ambulatory Smart OR
Devices Coaching Logistics Therapies
Activity Emergency Handheld Real-time
Peripherals
Monitoring Response Medical Location System
Intelligence Technologies
Next Digital Automated Care Co- Patient
generation Assistants Kiosks ordination Surveillance
Implants Technologies
Storage/
Analytics/ Database Cyber- Machine Inter- Decision
Informatics Management Security Learning operability Support
Source: Frost & Sullivan
Key Trends Driving MedTech Business Model Shift
Factors Driving Business
From To Objective
Model Transformation
Growing importance of performance metrics tied to reimbursement
Fee for Service Outcome Based • Opportunities to support providers in extending care across the continuum and
Contract Model
(Volume) (Value) population health management (PHM)
• Increased focus on patient/consumer and patient satisfaction
Increasing centralization of hospital purchasing process
Physician-led GPOs
Physician • Hospital consolidation - Shift to fewer decision makers
Target Customer (Clinical and Economic
(Clinical Value) • More standardization and increasing importance of administrators and economic
Value)
buyers
Increasing demand for solutions versus stand-alone products
Portfolio Strategy Diversified Targeted • Growing provider desire for fewer and deeper partnerships
• Shifting market focus from medical devices to end-to-end digital health solutions
Shifting patient mix from inpatient to outpatient
• Technologies (e.g. mHealth, RPM, Homecare) and reimbursement promoting lower
Inpatient Outpatient
Care Delivery acuity care settings
Care (Pre and Post Care)
• Providers and payers need to manage cost and justify value across the care
continuum
Source: Frost & Sullivan
Medical Technologies Market—Key Growth
Opportunities
Connected Devices Hospital Patient Monitoring Digitizing Cancer Intervention
• Connected devices and those • Analytics and real-time monitoring • "Precision in Care" would be the
enabling healthy living and aging are capabilities would be the value focus for cancer therapy
set for double digit growth and proposition of patient monitoring manufacturers with investments in
increased global adoption in 2018. companies, moving forward. digitization of therapies, improving
visualization and surgical
• The cardiac sector will lead the way • Hospital-centric patient monitoring
techniques, and workflow
in the adoption of connected devices will be driven by the shift to wireless
integration solutions.
to support the care continuum. real-time monitoring, enabling the
clinical community to drive greater
efficiencies.
Image Source: Thinkstock, Frost Database Source: Frost & Sullivan
Medical Imaging Equipment Market—Key Growth
Opportunities
AI in Portable and Handheld Digital
Imaging Ultrasound Tomosynthesis
• AI will move mainstream in the • High growth opportunities in the • Digital Tomosynthesis continues to
imaging diagnostics segment, ultrasound imaging category with evolve as a more effective diagnostic tool
leveraging advanced/ deep learning capabilities beyond established in breast imaging and digital x-ray
capabilities to improve screening clinical segments. technologies, and is expected to spur
market growth in the next 2-3 years.
outcomes. • Key areas of growth include: POC,
• With x-ray technologies, Digital Chest
• Operationalizing AI platforms across primary care, musculoskeletal,
Tomosynthesis (DCT) is also proving to
medical imaging workflows would emergency medicine, anesthesia, be more effective at guiding clinical
result in 10–15% productivity gains pain management, and fusion decision making around detecting lung
for radiologists in the next 2-3 years. imaging. nodules.
Image Source: Thinkstock, Frost Database Source: Frost & Sullivan2018 Healthcare IT Market—Key Growth Opportunities
Cloud Solutions for Cognitive Care
Healthcare Computing Management
• Increasing volume and complexity of • Meaningful cognitive solutions have an • Solutions that allow management,
healthcare data underscore the potential estimated revenue potential of over $40 integration and analytics of genomics,
to develop new and innovative solutions billion by 2025. While the benefits medical records and population health
that leverage cloud platforms. accrued by various healthcare industry data will enable Precision Medicine.
stakeholders through cognitive
• Adoption of cloud-based clinical • Precision Medicine solutions will play a
computing could be well over $150
applications including EMRs, HIE, PHM pivotal role in not just drug discovery
billion by that time.
solutions and teleradiology will peak in but, also, improvements in care quality,
the next 3-5 years but the game- • The data deluge in healthcare is paving outcomes and chronic disease
changer will be real-world data. the way towards analyzing information management.
collaborations. and deriving “value” for stakeholders.
Note: EMR—Electronic Medical Record, HIE—Health Information Exchange, PHM—Population Health Management.
Image Source: Thinkstock, Frost Database Source: Frost & SullivanMedical Technologies Sector Companies to Watch—
2018
Abbott Laboratories Abiomed
Continuous Glucose Monitoring Miniaturized Circulatory Digital Wound Management
Support Devices Solution
Brief Summary: Brief Summary: Brief Summary:
Provides a continuous flash glucose With the FDA approval of Impella RP® for The company’s advanced wound care
monitoring system called Libre, at 1/4 the Right Heart Failure in 2017 and with its business, comprising 26% of its 2016
cost of existing systems, FDA approved in Impella series of heart pumps, Abiomed is revenue of $4.7 billion, has been stagnating
September 2017 and received the only solution provider of percutaneous over the last 5 years. Smith & Nephew
reimbursement approval in most European temporary ventricular support devices for acquired worldwide distribution rights for
countries and Japan at the end of 2016 right heart failure and cardiogenic shock MolecuLight i:X, an innovative digital wound
and 2017. therapy. assessment device.
Unique Value Proposition:
Unique Value Proposition: MolecuLight i:X expands the company’s
Approval in CE and Japan generated Unique Value Proposition: footprint from wound therapeutics into the
hundred thousands of unit sales, primarily With the expansion of product sales to digital wound imaging and diagnostics space.
with out-of-pocket expenditure. FDA international markets, the company is Unmatched product synergies across the
approval and reimbursement coverage expected to grow at a higher rate and wound care continuum offers healthcare cost
across many countries is likely to double FY2018 revenues are projected to grow by savings and high topline growth opportunities.
unit sales in the next 2 years. more than 25%, making it one of the fastest It is a win-win value proposition, offering
growing cardiovascular device companies in significant scale and faster growth potential for
the last 5 years. MolecuLight.
Source: Frost & SullivanMedical Imaging Sector Companies to Watch—2018
Artificial Intelligence Portable/Hand-held Ultrasound Digital Tomosynthesis
Brief Summary: Brief Summary: Brief Summary:
Arterys uses deep learning in it’s cardio AI, lung AI Butterfly Networks ushers in a new era of high- As an OEM dedicated to women’s care, Hologic
and liver AI platforms in order to improve the performance, hand-held ultrasound systems. It continues to build on its product portfolio to address
imaging accuracy of its cardiac MRI scans, provide has developed the world's first Ultrasound-on- the continuum of breast care through early
single click automated volumetric segmentation of a-Chip based imaging system (Butterfly iQ® for detection, diagnosis, surgical treatment planning,
lung nodules and automated segmentation of liver iPhone) by combining almost 10,000 sensors, and image-guided procedures.
lesions. Arterys received FDA approval for its covering across 13 clinical applications, with a In ECR’17, Hologic introduced its new dedicated
cloud-based Cardio DL platform in January 2017. single transducer probe. prone stereotactic biopsy system, ‘Affirm’ which
delivers the capability of performing both 2D and 3D
tomosynthesis-guided procedures on a single
Unique Value Proposition:
Unique Value Proposition: platform.
GE Healthcare’s Vios Works solution is powered
by Arterys. The company has also entered into a A unique blend of affordability (at less than $2k),
partnership with Siemens Healthineers. In diagnostic versatility, and assistive intelligence Unique Value Proposition: Transformation from
November 2017, the company raised USD 30 makes the Butterfly iQ® the next ‘in’ stethoscope product-centric to ‘customer-centric’, together with
million in Series B funding. Artery’s portfolio also in daily practices. It is expected to play a pivotal an established sales and distribution network for
includes the FDA approved MICA platform, an AI role in the diagnosis of pneumonia and women’s women's health, as well as extensive relationships
platform for medical imaging analytics, which health during child birth. with clinical labs and OB/GYN channels, will
includes Arterys’ PHI Service for data security. accelerate Hologic’s customer penetration and
retention.
Source: Frost & SullivanHealthcare IT Sector Companies to Watch—2018
IBM Watson
Technology Platforms & Services Cognitive Intelligence Platform Internet Conglomerate
Brief Summary: The online retail Brief Summary: Despite some negative Brief Summary: In Dec 2017, Alphabet
and services giant announced a publicity, IBM Watson continued to see growth announced a number of
$14 billion acquisition of Whole in revenues and client base from the healthcare new services from various subsidiaries
Foods and a partnership with Cerner to enter industry. Watson for Oncology is expected to (DeepMind, Verily and Google) to be launched in
the PHM market, while Amazon Web end the year with over 120 hospital clients, the near future. Combined with recent
services continues to be a leader in the while partnerships with other market investments in start-ups throughout 2017, the
healthcare cloud computing market. participants like Sanofi, Medtronic and CDC company promises to expand its play in
developed further. healthcare in 2018.
Unique Value Proposition: Amazon’s products
and technologies have a strong consumer- Unique Value Proposition: Google’s consumer
centric market presence. Its cloud platforms Unique Value Proposition: Cloud+Cognitive is penetration of over a billion users globally and
and e-commerce business models have the an integrated value proposition that IBM is Alphabet’s technical brilliance across all its
potential to create truly patient-centric clinical bringing to every client engagement. The businesses has the power to create disruptive
and non-clinical health services, ranging from powerful combination promises to deliver healthcare IT solutions such as, for instance, the
wellness advisory and disease management to optimum ROIs on the latest technologies, highly accurate, open source platform for gene
retail sales and clinical intervention. including IoT and blockchain for clients. sequencing, DeepVariant.
Source: Frost & SullivanTop 6 Transformational Shifts Impacting the Medical Device Industry
in 2018
“Patient Centricity” will be the key driving force for the growth of medical devices in 2018 and beyond.
6 1 6 out of 10 new products
Risk sharing, ecommerce and positioned today to hospitals
product digitization are business are a solution that improves
model to drive double digit outcomes or efficiency
growth in 2018
80% of the Top 25
Medical Device 2 Fem tech and Women’s
companies have some 5 Health would witness
form of service portfolio great investments and
and have strengthened open markets in the US
the same to grow and Europe.
significantly from 2018.
2018 will witness immense
growth in the secondary
Increase in corporate portfolios of the top 10 Med
wellness is likely to provide 4 3 tech companies, due to
newer opportunities for stabilization and successful
Payors and OEMs integration of their M&As
since 2016.
Source: ORC International, Frost & SullivanConcluding Thoughts
What opportunities lie within the incorporation of advanced technologies,
such as artificial intelligence, Big Data analytics, and cloud computing?
How do Smart Hospitals affect traditional healthcare vendors? What is
the size of the growth opportunities for vendors until 2025?
2018 Global
Healthcare What are the keys to monetizing unmet healthcare needs? What
Market are the opportunities tied to X-as-a-Service business models?
Outlook
What are the current trends related to cybersecurity for medical
technologies? Which devices and systems are most vulnerable?
How does the new ecosystem of digital solution providers look like for remote
or virtual clinical trials?
Source: Frost & SullivanYou can also read
