The State of the Medical Device Market


Technology has revolutionized medicine in ways we couldn't have foreseen. The variety of medical devices available to health care professionals and consumers stands out as a major example of how much these advances offer today's world. When recognizing their worth, though, it's also important to take notice of the underlying parts that keep such devices running at peak performance levels - quite a few of which AMETEK ECP has designed and manufactured for decades.

In this article, we'll delve into the financial state of the medical device industry - both generally and in terms of major subcategories like implantable devices - and also look more closely at the components from AMETEK ECP that make up a robust and vital part of the health care field.

US in the driver's seat for medical device trade

According to data from the Department of Commerce, the U.S. alone represented about 40 percent of worldwide medical device sales in 2017, accounting for a market worth approximately $156 billion and also producing $41 billion in export sales. Many of the companies involved spend a great deal on research and development, which partially impedes their short term profitability but is an investment in future growth.

The medical device field relies on complementary sectors that American firms dominate, including software development, telecommunications, microelectronics firms such as AMETEK and others. Because of this, producers of medical technology can be secure that they'll have the raw materials and components to create their goods.

In April 2018, Research and Markets released Lucintel's latest findings on the field, "Medical Device Market Report: Trends, Forecast and Competitive Analysis," which came to positive conclusions. Specifically, the global market for medical devices will continue to expand at a compound annual growth rate of 4.5 percent between 2018 and 2023, reaching a net worth of approximately $410 billion by the end of that five-year period.

The surge of implantable

It's no secret that implantable technologies have been a major positive for the overall medical device market. As recently as 2013, implantable accounted for nearly 6 percent of 2013's $2.3 trillion total of American medical expenses. Data from the AARP Public Policy Institute found that this category of the market, which includes pacemakers, joint implants, nerve simulators for chronic pain and neurological disorders, implantable Cardioverter defibrillators and more, may be worth up to $74 billion on its own by 2018's end.

implantable medical device

Even when narrowed down to active implantable - meaning all devices operating continuously within the body, as opposed to inert items like joint reinforcements - Market Research Engine projected these alone could account for as much as $26.75 billion by 2022, experiencing a 7.8 percent CAGR between 2018 and 2022. Given the possibility of further advancements within implantable during the next several years, we may eventually look back on estimated numbers as big as those and consider them conservative.

Potential drawbacks

On a general level, the future is bright on the medical device horizon. The expanding population of senior citizens in the U.S. and worldwide, plus the likelihood of improvements in manufacturers' methods and tools, make growth almost a given, as Lucintel noted.

When only looking at implantable, however, certain problematic possibilities emerge. Cost is arguably the biggest of these, in terms of what patients and insurance payers will expect or demand for such devices, according to Market Research Engine. Regulatory measures passed in countries to which America sells these products could also limit export sales. But the positives may ultimately outweigh the impact of any negatives.

AMETEK ECP parts provide essential power

In life-or-death emergencies where doctors need a patient's CT scans, for example, mistakes aren't an option. Imaging technology must operate swiftly and effectively. AMETEK ECP components including battery end-seals, MicroStampings, solder preforms and glass-to-metal seals help power promptly pass through appropriate conduits, so the scanner produces the best possible image for accurate diagnosis and treatment.

medical device solder preform
 
But that just scratches the surface of AMETEK's importance to medical devices. Our products are also used in implantable devices including pacemakers, ICDs and cochlear implants for the hearing impaired, among others. Numerous lasers for accurate surgical marking - as well as hardware like drills and saws - incorporate AMETEK parts as well. Take a look at our medical devices page to learn more about our industry-leading work in support of the health care industry.

 


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