With the New Year upon us, it’s a good time to speculate about the medical device market in 2014. As a director of business development, I always try to understand market prospects and ran across this article in Healthcare Finance News.
If you’re looking for a robust medical device market in 2014, it’s not looking very promising. “We believe the outlook for 2014 is not much improved over 2013 – we expect low, single-digit growth overall,” said Cheryl Richer, director of corporate healthcare for Standard & Poor’s. Richer did indicate that market performance will vary across product segments.
She indicated that spine and drug eluting stents remain weak, while endovascular arterial fibrillation and neuromodulation will show stronger growth. Demand in Asia looks strong, but will be flat in the U.S. and Europe. For example, according to RnR Market Research, China’s medical device market will grow from $20 billion in 2012 to a projected $53.5 billion in 2020.
The article also indicates the industry will continue to face pricing pressures. Continued global weakness and employment issues in the United States are slowing demand. The Affordable Care Act will help drive greater access to insurance which could help alleviate some of the effects according to Randy Vogenberg, PhD, principal of the Institute for Integrated Healthcare.
Vogenberg also believes 2014 will be an active year for mergers and acquisitions. ““Big device companies in the U.S. are finding opportunities for partnerships with startups and established players both in the U.S. and worldwide,”
What is your outlook for the medical device market in 2014? Do you agree that 2014
will be very much like 2013? Share your thoughts below.
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