BBC Research is out with a few reports that look at the medical device sector — and make hopeful predictions.
One, “The Global Market for Pain Management Drugs and Devices,” says devices account for only a small sliver of the pain-management pie — $1.87 billion in 2007, compared with $29 billion for pharmaceuticals. Devices, though, are expected to grow at a compound annual growth rate (CAGR) of 6.5% to reach $2.6 billion by 2012. That compares to a CAGR of 5.63% for the entire pain-management sector and 5.6% for pharmaceuticals that address pain. The driver? BBC Research says it’s devices’ lack of side effects and their success at treating pain that is not successfully being addressed by drugs.
A second report, “The Medical Equipment Market in China,” also predicts growth. China sold approximately $9.2 billion worth of medical equipment in 2006, an increase of 12.2% over 2005, according to the report. Commitments by government to healthcare, an aging population and a rising standard of living in China are driving growth. The country’s medical equipment market has a CAGR of 9.2% and is projected to grow from $10 billion in 2007 to $15.5 billion by 2012.
The report singles out imaging diagnostic equipment (e.g., CT, MRI, color ultrasound diagnostic apparatus and digital x-ray systems) and clinical diagnostic laboratory instrument as especially hot areas, expected to grow at even faster rates from 2007 to 2012 — CAGRs of 12.9% and 13.3%, respectively.
The final report, “Microelectronic Medical Implants: Products, Technologies & Opportunities,” says the global market for microelectronic medical implants is projected to grow to $12.6 billion in 2007 (up from $11.7 billion in 2006) and $22.1 billion by 2012, at a CAGR of 11.9%.
Cardiac implants accounted for more than three-quarters of total implant sales in 2006, while neurostimulators captured 9%. Going forward, though, the market for neurostimulators is projected to grow over twice as fast as that for cardiac implants, which are predicted to lose market share to under 70% by 2012. Spinal fusion stimulators, with a CAGR of 9%, are also projected to lose share and become one of the slowest growing segments of the microelectronic sector. Neurostimulators are expected to be the biggest gainers, with total market share increasing from 9% to 14% between 2006 and 2012.