The healthcare industry, specifically the medical-devices sector, in the United States and the rest of the world shows no signs of stopping, making it a viable industry for businesses planning to pivot.
Here’s the Outlook
The market value of US medical devices reached over $150 billion in 2017, according to Grand View Research. From that point to 2023, the compound annual growth rate (CAGR) will grow by 5%. By the end of the forecast period, the market size will achieve $208 billion.
This report isn’t the only one that projects a positive outlook for the medical-devices industry in the US. Select USA considers the country as the biggest market for these products today. In 2017 alone, the market value reached $156 billion — about 40% of the world’s demand. By 2023, this figure will increase to over $200 billion.
Also, the US will be a significant exporter of medical devices. In 2018, the total value of exports was $43 billion.
The increasing demand for medical devices also boosts job creation. In the US, the healthcare industry accounts for the employment of around two million people. Over 250,000 of them work in medical technology.
Additionally, it drives the sales and needs for industrial products, such as cartridge heaters. The same tool used to make aircraft can also help in assembling parts of medical supplies.
Factors that Promote Growth
The growth of the medical-devices market isn’t confined in the US. For example, the market share of Canadian medical products could increase by 5% until 2026, according to the Global Market Insights report.
So, what factors make medical devices a sought-after commodity?
1. Rise of the Geriatric Population
Many countries have a growing senior population, and these include the United States. In 2018, people 65 years old and above comprised only 16% of Americans. By 2030, this figure will increase to 20.6%. Within the next 20 years, it will balloon to 22%.
Migration isn’t the only reason behind these numbers. In general, Americans are living longer. However, age remains a risk factor for many chronic diseases, including cancer, heart disorders, diabetes, and hypertension.
2. Growth of Healthcare in the Asia-Pacific Region
Although healthcare spending in the United States continues to increase, it’s not the fastest-growing. That “title” belongs to the Asia-Pacific region. Market growth in Europe and the United States is only 10% while it’s nearly double in Asia.
The demand is because of many factors, particularly population and disposable income. About 59% of the world lives in Asia, and data showed it would continue to increase until 2050.
Although the wealthiest countries are still in North America and Europe, Asia has the fastest rise in the gross domestic product (GDP). According to the World Economic Forum, it will comprise 60% of the global growth by 2030. (Note, though, that numbers may change because of the pandemic.)
Creating medical devices isn’t easy. The industry is subject to many regulations and scrutiny. It needs precise production processes and stringent company policies. But the rapidly growing demand globally can be worth the trouble.