The global medical device industry comprises a vast number of manufacturers. However, a small group of large companies hold a majority share of the market and it is these firms that will lead the sector in the post-Covid era.
While the momentum of the global medical device manufacturing market and many of its companies was checked by the coronavirus pandemic, largely as a result of the disruption caused to supply chains, the industry, worth almost $500 billion, and its top tier of manufacturers remain in good health.
The world’s leading medical device manufacturers include Medtronic, Johnson & Johnson, Philips Healthcare, GE Healthcare and Siemens Healthineers. Here we take a look at who they are and what their specialisms are:
- Medtronic is an established powerhouse in the medical device manufacturing world. It has four principal product areas: cardiac and vascular, restorative therapies, diabetes and minimally invasive therapies.
- Johnson & Johnson is a household name and the pharma giant’s medical device company is a global leader in a number of therapeutic fields, including orthopaedic, cardiovascular, diabetes, vision care and surgery.
- Philips Healthcare is another familiar brand name and the company is renowned for its health technology solutions and advanced medical devices. Its main business segments are diagnosis and treatment, connected care and health informatics, and personal health.
- GE Healthcare is part of the GE Electric Company and is one of the world’s leading healthcare solutions and medical device firms. It specialises in manufacturing imaging, ultrasound and other advanced medical equipment.
- Siemens Healthineers is part of the Siemens group and one of the world’s leading medical device developers and producers. Its activity includes the manufacture of medical imaging devices and diagnostic equipment.
Other principal medical device manufacturers are Fresenius Medical Care, Abbott Laboratories, Becton Dickinson, Cardinal Health and Stryker.
Key growth segments in the post-Covid medical device market
The resilience of the medical device market is based on the impact of a number of underlying long-term growth drivers, namely a rising aging population with chronic diseases, increasing healthcare expenditure and technology development.
These factors are set to help the market bounce back quickly and assertively, with annual growth of around 6% forecast to 2023. Several key growth areas are expected to drive this recovery, including urology devices, ophthalmology devices, brain monitoring devices, cardiac monitoring and therapy devices, and orthopaedic medical imaging devices.
Another key medical device market growth area is wearable medical devices. The global wearable medical devices market was worth $19.3 billion in 2019 and spending on these products is expected to increase sharply to $79.9 billion by 2027.
Achieving growth goals and the role of outsourcing production
The composition of the top tier of medical device manufacturers is unlikely to change significantly in the short term as these companies work to fortify their market positions, both in terms of investment in organic-led growth and merger and acquisition activity.
Across the board, integral to achieving growth targets will be ensuring the continuation of manufacturing excellence and efficiency, and the resilience of a comprehensive supply chain, with outsourcing manufacturing partners an increasingly important resource.
What companies need to know about medical device outsourcing
On the subject of the outsourcing of medical device manufacturing, partnering with a contract manufacturer has many benefits for large medical companies, and more and more firms are adopting this strategy.
However, it is imperative that medical device companies choose the right partner. With competition getting ever fiercer and the pressure on margins unrelenting, it is crucial that companies work with a partner that has the specialist experience and expertise and the range of services to meet increasingly sophisticated and varied product demands.
As the market stabilises and new opportunities arise, whatever the size and scope of medical device companies, choosing the right contract manufacturer is a key decision.
Meridian Medical is an established and experienced contract medical equipment manufacturer specialising in a wide range of medical device design, development and supply services.
To find out more about how Meridian Medical can help you with your medical product design and manufacture, get in touch today by filling out our online form or contacting us on 01903 732344 or firstname.lastname@example.org.