The European Medical Technology Industry in figures 2021

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The European Medical Technology Industry in figures 2021
The European
Medical Technology
Industry in figures
2021
The European Medical Technology Industry in figures 2021
Table of contents

What is Medical Technology?					3

Regulations								7

Innovation						        			11

Employment					         			15

Companies						         			19
The European Medical Technology Industry in figures 2021
Expenditure on Medical Technology 				   21

MedTech Market in Europe		   				        25

Trade in Europe					           			       33

About MedTech Europe			        			       39
The European Medical Technology Industry in figures 2021
What is Medical
Technology?
The European Medical Technology Industry in figures 2021
Medical technologies are products, services or solutions used to save and improve people’s lives.

In their many forms, they are with you all the time, from prevention to diagnosis and cure.

There are three main categories of medical technologies:

  • Medical devices (MDs) are products, services or solutions that prevent, diagnose, monitor, treat and
    care for human beings by physical means.

  • In vitro diagnostics medical devices (IVDs) are non-invasive tests used on biological samples (for
    example blood, urine or tissues) to determine the status of a person’s health.

  • Digital health refer to tools and services that use information and communication technologies (ICTs) to
    improve prevention, diagnosis, treatment, monitoring and management of health and lifestyle.

For the sake of this document, medical technology includes only medical devices and in vitro diagnostic
medical devices.

                                                                                                               4
The European Medical Technology Industry in figures 2021
There are more than 500,000 medical technologies available in hospitals, community care settings and at home.

    Medical technology can be everyday objects such as sticking plasters, syringes, surgical masks, or latex
    gloves. It could also be spectacles, wheelchairs, COVID-19 tests or medical apps.

    Medical technologies also include total body scanners, gene mutation tests, implantable devices such as
    heart valves and pacemakers, and replacement joints for knees and hips.

    You may not always notice medical technologies, but they are always there for you.

    Medical technologies provide value in different ways. They allow people to live longer and better lives, thus
    empowering them to contribute to society for longer. At the same time, medical technologies improve the
    quality of care and the efficacy and sustainability of healthcare systems.

5
The European Medical Technology Industry in figures 2021
Medical technologies provide value in different ways. They allow people to live longer and better lives, thus
empowering them to contribute to society for longer. At the same time, medical technologies improve the
quality of care, and the efficiency and sustainability of healthcare systems.

                                                                                                                6
The European Medical Technology Industry in figures 2021
Regulations
The European Medical Technology Industry in figures 2021
In the European Union, medical technologies are tightly regulated by laws that govern the safety and
performance of devices across their lifetime, pre- and post-market. Over the next few years, the European
medical technology sector will transition from being regulated under the current medical devices directives
to two new regulations.

                                                                                                              8
The European Medical Technology Industry in figures 2021
Classification of In Vitro Diagnostic Medical Devices

    Today, the in vitro diagnostic (IVD) sector is regulated by Directive 98/79/EC. From 26 May 2022, the new
    Regulation 2017/746/EU will fully apply. Until this date, manufacturers can choose to comply with either the
    Directive or the Regulation.

    Classification of IVDs is important as it determines the level of involvement by a third party (the “notified
    body”) in assessing IVDs both pre- and post-market. This level of control is generally relative to the risk of an
    erroneous result from the assay.

    Under the IVD Directive, IVDs are classified into four classes following a positive list approach:

                    Annex II                  Annex II              Devices for             Self-declared
                     List A                    List B               self-testing               devices

                (e.g. ABO blood-         (e.g. blood glucose       (e.g. pregnancy           (e.g. clinical
                      typing)                monitoring)                 tests)           chemistry analyser)

    Under the IVD Regulation, all IVDs will be classified under a new risk-based classification system according
    to the risk the device poses to the health of the public and or an individual as result of an incorrect test result.
    All IVDs will be classified under class A, B, C or D, with class D being the highest risk class.

9
Classification of Medical Devices

Since 26 May 2021, the medical device (MD) sector is regulated by Regulation (EU) 2017/745, the so-called
‘Medical Devices Regulation’ (MDR), which has come into full application. The MDR replaces Directives 93/42/EC
and 90/385/EEC and from 26 May 2021 on, no medical device can be certified under the old Directives anymore.

Classification of medical devices drives many pre- and post-market requirements. Due to the large variety of
products, the level of control made by a third-party (the “notified body”) before placing them in the market
depends on the level of impact on the human body that their use might imply. The same notified body is
involved post-market to ensure the continued safety and performance of medical devices.

Under the MD Directive, MDs were classified into 4 classes following a risk-based classification system:

                Class I                  Class IIa                 Class IIb                 Class III
            (e.g. simple             (e.g. syringes for        (e.g. anaesthesia        (e.g. pacemakers)
         bandages or wound            pump infusion)               machines)
           care products)

Under the new MD Regulation, the risk-based classification system contained in the current Directives has been
maintained, although some changes have been introduced. The principle is the same: to link the class of the de-
vice to the potential risk posed to the health of the public and an individual as result of fault in the functioning.
All MDs are classified under class I, IIA, IIB or III, with class III being the highest risk class.

                                                                                                                        10
Innovation
Medical technology is characterised by a constant flow of innovations, which are the results of a high level of
research and development within the industry, and of close co-operation with the users. The average global R&D
investment rate (R&D spend as a percentage of sales) is estimated to be around 8% in the medical technology
sector1. Products typically have a lifecycle of only 18-24 months before an improved product becomes available.

In 2020, more than 14,200 patent applications were filed with the European Patent Office (EPO) in the field of
medical technology representing a 2.6% growth in patent applications compared to the previous year2. The medical
technology field accounts for 8% of the total number of applications, the highest among all the sectors in Europe.
38% of these patent applications were filed from EPO countries (including EU27, UK, Norway and Switzerland) and
62% from other countries, out of which with the majority of applications filed from the US (39%).

In comparison, around 8,500 applications were filed in the pharmaceutical field and around 7,200 in the field
of biotechnology. While over the last decade the number of EPO filings in the field of medical technology
has doubled, pharma and biotech patent applications remained relatively stagnant. Furthermore, the ratio of
granted patents to patent applications has been steadily growing in the past years reaching 73% in 2020. In
contrast, the same ratio is less than 50% in the pharmaceutical and biotechnology field (Graph 2).

Patent application in medical technology field filed with EPO in 2020

                            62%                       38%
                           Other countries             EPO countries
                                              (including EU27, NO, CH, UK)
                                                                                                                     12
Graph 1 – Top 10 technical fields in patent applications
Number of patent applications filed with EPO, 2020 (ref. 2)

          Medical technology                                                                   14.295

          Digital communication                                                            14.122

          Computer technology                                                         13.097

          Electrical machinery, apparatus, energy                            11.346

          Transport                                               9.020

          Pharmaceuticals                                       8.589

          Measurement                                           8.582

          Biotechnology                                7.246

          Other special machines               6.261

          Organic fine chemistry             5.905

      0            2,000       4,000       6,000        8,000       10,000   12,000    14,000       16,000
Graph 2 – Evolution of European patent applications and granted patents by
               technical field
               2020 (ref 2.)

               16,000                                                                                                            80%

               14,000                                                                                                            70%

               12,000                                                                                                            60%

               10,000                                                                                                            50%

                                                                                                                                       Granted Patents
Applications

                8,000                                                                                                            40%

                6,000                                                                                                            30%

                4,000                                                                                                            20%

                2,000                                                                                                            10%

                   0                                                                                                             0%

                        2010   2011        2012      2013    2014      2015        2016         2017        2018   2019   2020

                                      MedTech Applications   Pharma Applications          BioTech Applications

                                      MedTech Granted        Pharma Granted               BioTech Granted
Employment
The European medical technology industry employs directly more than 760,000 people3. Germany had the
highest absolute number of people employed in the medical technology sector, while the number of medical
technology employees per capita is highest in Ireland and Switzerland. In comparison, the European pharma-
ceutical industry employs around 795,000 people4.

The jobs created by the medical technology industry account for around 0.3% of total employment in Euro-
pe.5 These jobs are also highly productive, as the value added per employee is estimated to reach €184,000
per employee. These indicators show that the medical technology industry has an important economic and
societal impact in Europe.

               760,000+
               employees3

                                                                                                             16
Graph 3 – Top 10 countries in Europe with highest direct employment in
the medical technology industry
2020, or latest year available (ref. 3)

                                                        Sweden
                                    Belgium             27,000
                                     17,800   Austria            Germany
   United Kingdom
                                                                 210,000
                                               26,767

   102,800
          Ireland
                                                                           Switzerland
          40,000
                                                                           63,000

    France
    89,130

          Spain
         27,800

                                                                            Italy
                                                                            94,153
Graph 4 – Number of people directly employed in the medical technology
industry per 10,000 inhabitants
2020 or latest year available (ref. 3)
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  83     74        30         29      27       25      16         16    15   13       12        9        9         7       6   5   4      3    3
Companies
33,000
              medical technology
              companies in Europe

                  95%SMEs

There are more than 33,000 medical technology companies in Europe. The highest number of them are
based in Germany, followed by Italy, the UK, France and Switzerland. Small and medium-sized companies
(SMEs) make up around 95% of the medical technology industry, the majority of which employ less than 50
people (small and micro-sized companies)3.

                                                                                                          20
Expenditure on
Medical Technology
€265                                         11%of GDP
                 expenditure on medical
                                                                         spent on healthcare
                 technology per capita
                 in Europe

In Europe, an average of approximately 11% of gross domestic product (GDP) is spent on healthcare. Of this
figure, around 7.6% is attributed to medical technologies, i.e. less than 1% of GDP. The spending on medical
technology is estimated to vary significantly across European countries, ranging from around 5% to 12% of
the total healthcare expenditure. Expenditure on medical technology per capita in Europe is at around €265
(weighted average).*

* Medtech Europe calculation based on sources 4-8.

                                                                                                               22
Graph 5 – Breakdown of total healthcare expenditure in Europe
2020 (ref. 4–8)

                                                 14.9%* Pharmaceuticals &
                                                 other medical non-durables

                                                                        7.6%
                                                                        Medical Technology

                                      0.8% In vitro diagnostics

                                      6.9% Medical devices
                                      (incl. imaging)

*2019 Pharmaceutical expenditure
 is used for the calculation due to            77.6% Inpatient &
 a lack of 2020 value                          outpatient care, other
24
MedTech Market
in Europe
€140
               billion market
                                                                        27.6%
                                                                        of the world
                                                                        market

                                                                                        2nd
                                                                                   largest market
                                                                                       after US

The European medical technology market is estimated at roughly €140 billion in 2020.7,8 The biggest medical
device markets in Europe are Germany, France, the United Kingdom, Italy and Spain. The same group of countries
forms the top 5 IVD markets in Europe. (Graphs 6 and 7)

Based upon manufacturer prices the European medical device market is estimated to make up 27.6% of the world
market. It is the second largest medical device market after the US (41.6%).8

                                                                                                                 26
Graph 6 – European medical device market by country
2020 (ref. 8)

           25.6% Germany

           14.7% France

           12.1% UK

           9.1% Italy

           6.3% Spain

           4.4% Switzerland

           3.9% Netherlands

           3.3% Belgium

           2.7% Sweden

           2.6% Austria

           15.2% Others
Graph 7 – European IVD market by country
2019 (ref. 7)

                19% Germany

                14% France

                14% Italy

                9% Spain

                9% UK

                4% Switzerland

                4% Poland

                4% Belgium

                3% Netherlands

                2% Austria

                18% Other
Graph 8 – Europe in the world medical device market
2020 (ref. 8)

          41.6% US

          27.6% Europe

          7.4% China

          7.2% Japan

          1.8% Canada

          1.6% South Korea

          1.3% India

          11.6% Others
Graph 9 – European medical device market growth rates
2009-2020 (ref. 8)

 15%

 10%

                USA                  Europe                       Japan                     China
                43%                      27%                       7%                       6%
  5%

 0%
         2009  2010       2011    2012     2013    2014    2015   2016       2017    2018  2019      2020
            Canada                       Brazil                Russia                   Others
                2%                        1%                       1%                       13%
  -5%

The European medical device market has been growing on average by 2% per year over the past 10 years.
Demand fell in 2009 due to the economic crisis, resulting in a growth rate of only 1% (lowest in 12 years). The
market regained its pace in 2010, and since then the annual growth rate has varied between 2.6% (2013) and
9.3% (2015), being 8.5% in 2020.8

                                                                                                                  30
Graph 10 – European IVD market growth rates
2009-2019 (ref. 7)

  5%

  4%

  3%

  2%

  1%

  0%
                                               2013       2014      2015       2016      2017       2018      2019
 -1%

 -2%

 -3%

 -4%

The European medical device market has been growing on average by 2% per annum over the past 10 years.
Demand
The      fell inIVD
    European      2009  due growth
                    market   to the economic
                                     has been crisis,
                                              slowing resulting in a 2013
                                                        down until   growth rate
                                                                          with   of only
                                                                               annual    1%. The
                                                                                       growth ratesmarket  recovered
                                                                                                    at around  2-4%.
in 2010,
The      since
    average      then the
              growth   rateannual  growth
                            since 2013  hasrate
                                            beenhas   varied
                                                   0.9%      between
                                                          while        2.6 annual
                                                                 the 2019  and 9.3%  7
                                                                                  growth  rate for the European IVD
market was 1.5%.
Graph 11 - European medical technology growth rates by sectors
2016-2020 (ref. 8)

40%

30%

20%

10%

  0%
                2016                 2017                2018                 2019                2020
-10%

-20%

-30%

       Orthopaedics & prosthetics growth       Dental products growth            Consumables growth
       Patient aids growth                     Other medical devices growth      Diagnostic imaging growth

COVID-19 affected the medical technology industry in different ways. Postponement of elective surgeries
across EU countries led to deferred patient care within the Orthopaedics and Dental fields.

On the other end of the spectrum, sales of IVD (e.g. PCR tests), consumables (e.g. nasal cannulae, syringes,
surgical gloves) and patient aids (artificial respiration apparatus such as ventilators) products skyrocketed as
these medical technologies provided the special care severe COVID-19 patients require.
Trade in Europe
€8.7billion
             Estimation of Europe's
             trade surplus in 2020

Europe has a positive medical devices trade balance of €8.7 billion (2020). Compared to the previous years, the
main European medical device trade partners remain the same: the US, China, Japan and Mexico.9

                                                                                                                  34
Graph 12 - Top European medical technology export destinations
 2020 (ref. 9)

                                                            Russia
      Canada                                                4.6%
      2.2%

                                                                        Japan
    USA                                                                 6.2%
                                                                             South Korea
39.7%                                           Turkey
                                                  1.8%
                                                                     China
                                                                             2.4%
                                 Saudi Arabia
                                        1.8%                         11.8%
                                                    India
                                                    1.6%

                                                            Australia
                                                            3.1%
Graph 13 – Top import suppliers to the European medical devices market
 2020 (ref. 9)

    USA                                                              Japan
                                                                     4.9%
41.2%                                                                 South Korea

    Mexico
                                    Israel                    China 1.5%
       8.2%
                                    1.9%
                                                              19.5%
          Costa Rica                          Malaysia
                 2.6%
                                                  4.5%
                                                Singapore
                                                     3.5%

                                                         Australia
                                                             1.7%
Graph 14 – Export and import of medical devices by country
Including intra-community trade, million euros, 2020 (ref. 9)

         GERMANY                                                                                                        28,096
                                                                                                19,166

                                                                                                             25,403
     NETHERLANDS                                                                       17,834

          IRELAND                                               10,383
                             2,471

         BELGIUM                                                 10,033
                                                              9,116

     SWITZERLAND                                               9,622
                                       4,362

           FRANCE                                    7,373
                                                                 10,667

                                             5,919
               UK
                                                             8,841

             ITALY                   4,141
                                               6,065

          POLAND                   2,968
                                 2,564

          AUSTRIA             2,171
                             2,286

         DENMARK           1,894
                          1,554

          FINLAND          1,730
                         1,030

             SPAIN        1,608
                                           4,873

                         1,531
          SWEDEN
                          1,832

    CZECH REPUBLIC       1,194
                         1,195

                     0               5,000              10,000                15,000       20,000        25,000       30,000
                                                                     Export       Import
Graph 15 – Medical devices trade balance by country
Including intra-community trade, million euros, 2020 (ref. 9)

                                     GERMANY                                                                8,930
                                      IRELAND                                                       7,912
                                 NETHERLANDS                                                      7,569
                                 SWITZERLAND                                             5,260
                                      BELGIUM                      917

                                      FINLAND                  700
                                       POLAND                404
                                     DENMARK            340
                                     LITHUANIA          53
                                        MALTA           12
                                      ESTONIA           4
                                               -1            CZECH REPUBLIC

                                              -15            BULGARIA

                                              -47            LATVIA

                                             -59             SLOVENIA

                                            -74              CYPRUS

                                         -100                LUXEMBOURG

                                         -115                AUSTRIA

                                            -216             SLOVAKIA

                                            -219             HUNGARY

                                        -248                 CROATIA

                                        -301                 SWEDEN

                                       -489                  ROMANIA

                                      -615                   GREECE

                                      -686                   PORTUGAL

                                     -886                    NORWAY

                        -1,924                               ITALY

               -2,922                                        UK

            -3,265                                           SPAIN

            -3,294                                           FRANCE

           -4,000           -2,000                  0                    2,000   4,000   6,000   8,000       10,000
About MedTech Europe
MedTech Europe is the European trade association representing the medical technology industries, from
diagnosis to cure.

We represent diagnostics and medical devices manufacturers operating in Europe.

MedTech Europe’s mission is to make innovative medical technology available to more people while helping
healthcare systems move towards a sustainable path. MedTech Europe encourages policies that help the
medical technology industry meet Europe’s growing healthcare needs and expectations. It also promotes
medical technology’s value for Europe focusing on innovation and stakeholder relations, using economic
research and data, communications, industry events and training sessions.

MedTech Europe’s Facts & Figures publication is an annually updated report with robust industry data
compiled from multiple sources. The publication is used as the quintessential source of data by international
stakeholders seeking an up-to-date view of industry innovation and employment, SME activity, expenditure
on medical technology, trade and market size in Europe.

                                                                                                                40
Scope of this report
     • In this report Europe refers to EU27, Norway, Switzerland and the United Kingdom, unless specified otherwise.

     • The Innovation chapter defines medical technology following the methodology of the World Intellectual
       Property Organization (based on the WIPO IPC-Technology concordance as revised in August 2014).
       Patents are attributed by the country of residence of the applicant. EPO countries refer to the 38 member
       states of the European Patent Organisation.

     • The Employment and Companies chapters are based on data from the 2020 survey carried out among
       MedTech Europe’s National Associations. Figures refer to the latest year available. An enterprise is considered
       to be a SME if it employs fewer than 250 persons and has an annual turnover not exceeding € 50 million (small
       and micro-sized companies employ fewer than 50 persons and have a turnover of less than € 10 million).

     • The Expenditures on Medical Technology chapter is based on MedTech Europe calculations using healthcare
       statistics from the following sources: EFPIA, Eurostat, Fitch Solutions, WHO.

     • The MedTech Market in Europe chapter is based on manufacturers’ sales (revenue) not including margins, such
       as value added in the wholesaling and retailing, transportation costs, some taxes included in the final price, etc.

     • The Trade chapter data refers to the medical technology products in the following categories, excluding
       in vitro diagnostics: orthopaedics & prosthetics, patient aids, dental products, diagnostics imaging,
       consumables, other medical devices (incl. wheelchairs, ophthalmic instruments, hospital furniture, medical
       & surgical sterilisers, ultra-violet or infra-red ray apparatus, blood pressure monitors, endoscopy apparatus,
       dialysis apparatus, transfusion apparatus, anaesthetic apparatus & instruments).

41
References
1 Evaluate MedTech, 2018, World Preview 2018, Outlook to 2024.

2 European Patent Office (EPO), 2021, Patent Index 2020.

3 MedTech Europe, 2020, National Associations Survey.

4 EFPIA, 2020, The Pharmaceutical Industry in figures.

5 Eurostat, 2021, Employment and Population Statistics.

6 WHO, 2019, Global Health Expenditure Database.

7 MedTech Europe, 2020, European IVD Market Statistics Report 2020. 2020 IVD market size data is
 preliminary and is based on MedTech Europe Statistics Programmes

8 Fitch Solutions, 2021, Worldwide Medical Devices Market Factbook 2020.

9 International Trade Centre, 2021, International Trade Statistics – MedTech Europe calculations.

                                                                                                    42
www.medtecheurope.org
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