The MedTECH INDUSTRY

Over the past few years, the MedTech industry has witnessed significant growth and development. An aging population, rising burden of chronic diseases and increased trust in medical devices by clinicians and consumers have resulted in greater alliances between pharmaceutical companies and the MedTech sector.

The U.S. and EU are two of the largest MedTech markets, with an estimated revenue of $162 billion USD and $134 billion USD, respectively. Despite their market strength, developed regions are facing numerous market drivers and barriers that are restricting opportunities for growth1.

In 2017, in vitro diagnostics (IVD) held the top position among all therapeutic segments of medical technology products, followed by cardiology, with market sizes of around $62 billion USD and $50 billion USD, respectively. Increased incidence of chronic disease, expansion of insurance coverage and increasing affordability of MedTech products have propelled growth of these medical device segments.

At VRAI Medical Technologies we are dedicated to the evolution of healthcare through simplified medical devices that provide physicians tools to diagnose and treat various medical conditions. And to provide patients a better understanding of their disease state with direct engagement in their own healthcare management.

One of the biggest market trends has been the rise of artificial intelligence (AI). MedTech companies are investing heavily in the R&D of AI-based technologies, such as cloud-based software and healthcare applications. These technologies have the potential to change the face of the MedTech market, aiding clinical decision-making and early diagnosis of disease. AI-based technologies enable self-testing by patients and point-of-care (POC) diagnosis, resulting in fewer visits to hospitals and individualized treatment. It’s not without its challenges, however, as cybersecurity issues have negatively impacted progress of AI development.2 

Even though there are challenges, the global MedTech industry will continue to expand due to the rising burden of disease, aging population and greater awareness of healthcare.

Despite changing and increasingly complex reimbursement and regulatory processes, the global MedTech market is expected to grow at a steady rate.

This increased growth is mainly driven by M&A, increase in R&D expenditure, development of AI-based technologies and rising demand for MedTech products in emerging geographies such as Latin America (LATAM), Asia Pacific (APAC) and Middle East and Africa (MEA), as well as pre-established markets such as North America, Europe and Japan.