In 2020 medical device sales in the U.S. are estimated to be $457 billion increasing at a CAGR of 5.6% through 2024 or increasing sales to $595 billion. The growth in medical device sales to emerging economies is having a significant impact on the industry accounting for 30% of all sales. Where is the growth in medical device sales coming from outside of emerging economies?
The Internet of Medical Things (IoMT) is allowing medical device manufacturers to become a healthcare partner with their customers. MedTech is considered a value based partner rather than just a developer and supplier of devices. The key for successful IoMT is the accuracy and fluid transfer of the data that provides an analysis of health conditions for healthcare systems and patients, which in turn improves patient outcomes while reducing costs.
Nemaura Medical, Inc. recently announced the launch of their product SugarBEAT under the wellness category. SugarBEAT allows adults with different lifestyle, dietary and health and well being factors to impact their sugar levels. Data will be gathered on a large scale, from a diverse patient demographic, allowing Nemaura to develop artificial intelligence-based predictive algorithms that are scalable and could define new opportunities for the prevention and management of diabetes.
IoMT combined with data as a source of revenue is creating a new infrastructure for the medical device industry. According to Deloitte’s Research2Guidance, 31% of medical device companies are offering data distribution channels as a service, 39% are incorporating data as an added value to justify pricing and 43% are using data to drive business decisions.
Baxter International recently had a metabolic monitoring device utilizing indirect calorimetry technology (IC) receive U.S. FDA clearance. IC is considered the gold standard for measuring a patient’s calorie needs or resting energy expenditure. In turn these readings (data) inform prescription and nutrition therapy.
All of this exchange of information and accessibility between healthcare providers and patients means manufacturers and suppliers need to create safeguards against cybercrime. Security is strong at the initial design and development stage but it has be extended throughout the product’s lifecycle.
Other promising growth segments within the medical device industry include surgical and infection control devices, general medical devices, cardiovascular devices, orthopedic devices and wearable monitoring healthcare technologies.
Interested in a career in medical device sales, or hiring to take advantage of the growth in medical device sales? Contact Smith Hanley Associates‘ Executive Recruiter in Medical Device Sales, Gary Cavanagh at [email protected].