The global Medical Devices market size is expected to increase to USD 612.7 bn by 2025, compared to USD 425.5 bn in 2018 (Fortune Business Insights). The United States remains the largest medical device market in the world making up to 40% (USD 156 bn) of the global market in 2017 and its market size is expected to grow to USD 208 billion by 2023. According to Market Data Forecast, Europe is estimated to be worth USD 145.8 bn in 2023.
Source: Bergos, IQVIA, 2Xideas
Medical device companies faced labor and supply chain headwinds as the macroeconomic environment negatively impacted the sector for much of 2022. These headwinds showed signs of easing in 2023 as companies reported a stronger labor market and a return of elective procedure volumes. In 2024, Medtech firms could face opposing earnings forces as new product launches should help organic revenue growth. We see innovative new advancements in the space, particularly in diagnostics & monitoring as well as a recent wave of industry innovation that is continuing as many surgical procedures move to robotic platforms or less-invasive techniques. Moreover, robust surgical volumes potentially offset higher cost of goods. In our view, companies that are able to bring to market cost-effective solutions that improve patients’ outcomes are well positioned to benefit from sustainable growth over the longer term. Another supportive factor for continued growth in surgical procedures is the US employment rate, which has remained resilient despite higher interest rates. Until 2025, rising interest of medical technology companies for the investment in the R&D of new generation medical devices, and green signal by regulatory authorities for their approval are likely to boost the medical device industry.