An industrial sector has become the basis of the healthcare system.
The Covid-19 pandemic has clearly shown us all how important a functioning, state-of-the-art healthcare system is since the start of 2020. An important basis of the healthcare system is the medical technology industry, which produces the corresponding hardware - often with a lot of electronics and software. We want to focus on this at the start of 2022.
EU 99 billion market volume
The market volume of the medical technology industry in the EU amounted to around €99 billion in 2019, excluding Ireland. In addition, the strong Swiss medical technology sector accounted for € 14.7 billion and the United Kingdom, which has also been reported separately since Brexit, accounted for € 6.8 billion.
Fig. 2: Top 10 EU medical technology industry by country in 2019 in € billion
In the EU, Germany leads the medical technology industry by a wide margin with a turnover share of € 36.6 billion (37%). France and Italy follow at a considerable distance with € 12.8 billion (13% each). Denmark has a 4% share and Spain, the Netherlands, Belgium, Austria and Sweden are in the 2% league(Fig. 2).
Germany market leader in the EU
With its sales volume, German medical technology is the third largest in the world. Exports accounted for € 24 billion (66 %), while € 12.6 billion (34 %) was generated on the German market. The industry consists of 1375 companies, which are primarily structured as medium-sized companies. It comprises 149,000 employees.
Fig. 3: Top 5 target countries for German medical technology exports in 2019 in € billion
The USA is the leading destination for German medical technology exports with 37%. Exports from Germany to China account for 17%, to France and the Netherlands around 13% each and to Italy 10%(Fig. 3)
Strongly growing global market
With growth of 5.6% in 2019, the medical technology market is one of the fastest-growing economic segments. An ageing society in the old economic nations and new demand for basic care in developing countries will continue to drive growth in the future. The total global market for medical technology amounted to USD 446 billion (2019). While Europe and Asia-Pacific each account for around a quarter of the market volume, the USA has the largest demand at 39%(Fig. 4).
Fig. 4: Global market for medical technology in 2019 according to a study by Frost & Sullivan
Going into more detail, Germany follows with a 9.9% global market share in 2017, Japan achieved 8.9% of the global sales volume and China 8.1%. France follows in fifth place with 4.0%(Fig. 5).
Fig. 5: Medical Technology Production World 2017 by country in percent
Fig. 6: Global medical technology market by medical specialty in percent with a global market of USD 445.5 billion in 2019
The five medical specialties with the highest sales are orthopaedics with 12.2%, followed by minimally invasive medicine with 10.3%(Fig. 6) Cardiology is in third place with 9.4%, followed by ophthalmology with 8.4%, i.e. ophthalmology (laser systems, etc.). In fifth place are imaging procedures such as MRI, MRI with 7.1 % (Fig. 1).
In a nutshell
Fig. 7: Sophisticated electronics from Dyconex AG, MST - Evity 8 dual-chamber pacemaker with a volume of just 11 cm3 and a weight of 23.2 g The global market for medical technology products is a growth market with a volume of USD 445.5 billion (2019).- With a global market share of 27%, Europe is the second-largest manufacturer after the USA with 39%.
- Demand in the specialist areas of orthopaedics, minimally invasive medicine, cardiology, ophthalmology and imaging processes covers almost 50% of the global market.
According to a Prismark analysis, global demand for printed circuit boards for medical technology products amounts to around USD 1.3 billion and is expected to grow to USD 1.6 billion by 2025. One growth area is automated care with service robots. Japan is a first mover or pioneer here. But here too, the shortage of nursing staff will create innovative solutions. The ageing society is also creating additional demand for imaging diagnostics, dialysis systems and wearable monitoring.
The medical technology market is extremely demanding in terms of quality and reliability, but also in terms of technology - for example in the case of pacemakers or in-ear hearing aids.
I wish you a healthy
and successful year 2022
With best regards
Yours
Hans-Joachim Friedrichkeit
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