The global medical devices outsourcing market size was valued at USD 115.9 Bn in 2020 and is expected to reach USD 231.2 Bn at a growth rate of 10.4%. The boost in sales during the forecast period is due to the rising geriatric population, the growing prevalence of chronic conditions, the growth in surgical procedures, and complex surgeries.
Medical devices help healthcare providers treat and diagnose patients and improve quality of life. We have seen a surge in medical device exports to Asia. While the U.S. and Europe markets are growing at 7-8% a year, Indian and Chinese markets grow at 25% a year.
Why is the Industry Growing?
More people are resorting to diagnosis and treatment of specific diseases at home using self-medication and home-based treatment. We see growing funding into healthcare startups that provide these services, and big players are funding their healthcare and medical devices ventures.
People are using more sophisticated devices like glucose monitors, insulin delivery devices, nebulizers, and oxygen concentrators. This trend is due to increasing awareness of lifestyle disorders and familiarity with new technologies through the internet and consumer devices.
Remote communication technology allows healthcare professionals to support patients at home, further aiding the preference for home and self-care, which means two things.
- It is convenient in time and travel, reducing healthcare costs for consumers.
- Doctors can efficiently and effectively deliver quality healthcare to patients who take greater responsibility for their health.
The 2020-21 COVID-19 pandemic is now boosting demand resulting in an upward projection of our healthcare expenditure forecasts. Different countries are reacting differently due to the variation in their healthcare systems, government policies, and cultural norms.
The government lockdowns impacted the supply resulting in decreased sales, the manufacturing and the supply of ventilators increased. As the virus is spreading, healthcare providers are shifting their practice and purchasing priorities to meet the demands. There are two changes we will see –
- There is an increased deployment of medical staff and equipment to fight the virus and its complications.
- More hospital rooms, diagnostic labs, and capital equipment will be moved from traditional uses to screen and treat COVID-19 patients.
Looking at Trends Attributed to Tech Advances
Competition in the market has forced companies to look for technology to provide superior care. The tech advances have presented new opportunities to answer challenges. Let us look at some trends helping tech advances.
Internet of Medical Things (IoMT)
IoMT is vital to the digital transformation in the medical device industry. It has revolutionized medical devices with top-notch innovations like smart devices, lightweight communication devices, and smart sensors.
With its ability to diagnose disease autonomously and monitor biomedical signals effectively, IoMT will reduce costs, enhance efficiency, and improve patient outcomes.
With a CAGR of 28%, the IoMT market is expected to grow up to USD 285.5 Bn by 2029. Manufacturers can improve data collection and its utilization to help healthcare providers make informed decisions by integrating IoMT with critical medical devices.
Robotics
We have seen a rise of non-invasive and minimally invasive robotic systems like the Cyberknife, Gamma knife, and the da Vinci surgical robot in surgical procedures, propelling the demand for minimally invasive robotic surgery (MIRS).
While surgeons enjoy the precision, efficiency control, and better ergonomics robots provide, patients favor these procedures for their smaller incisions, shorter recovery periods, decreased blood loss, and reduced hospital stay they offer.
Robots can assist in post-surgical rehabilitation, research lab automation, and disinfect hospitals and clinics – critical for designated COVID-19 hospitals—accelerated growth and demand call for enterprises to boost their research and development efforts in MIRS.
Artificial intelligence (A.I.) & Machine Learning (M.L.)
A familiar concept for medical device companies, A.I. and M.L. solutions are frequently used in building efficient diagnosis methodologies and increasing operational efficiency.
Two key drivers in digital transformation in the sector, the U.S. Food and Drug Administrators (F.D.A.) and regulatory bodies in other countries recognized its potential. A.I and M.L.-based medical devices will prioritize targeted treatments and personalized medicines.
Key Medical Capabilities
Some key capabilities AI and ML facilitates in the medical devices sector are
Medical Imaging – a technique of creating images of various parts of the human body for diagnostic and treatment purposes. It involves measurement and recording techniques that don’t create ‘images’ but produce data represented as graphs or maps. Let us look at some important applications:
- Echocardiography – it shows detailed structures of the heart, including chamber size, heart function, the valves of the heart and the pericardium.
- M.R.I. scanning – shows two-dimensional images of the body and brain.
- Projectional radiographs – to identify pathological changes in the lungs, certain types of colon cancer, and bone fractures, and
- Positron Emission Topography (P.E.T.) – treats various pathologies using certain isotope properties and the energetic particles emitted from the radioactive material.
Therapeutic Devices – They are of two categories – those that assist a patient in their daily activities like visual aids, canes, hearing aids, etc. The second category is those that help medical personnel in delivering therapeutic services. Examples for this category are –
- Catheters – They are used to deliver medications into the body and remove specific fluids from the body.
- Intravenous lines – A soft and flexible tube placed inside a vein to deliver fluids and medicines.
- Oxygen delivery systems – there are various delivery methods like face mask, nasal prongs, tracheostomy mask, among others.
Patient Monitoring – Electronic monitors collect and display physiological data, including patient parameters like heart rate and rhythm, blood pressure, blood oxygen saturation, among others.
- Blood pressure monitor – They take readings from the heart and report daily averages. It could assist in early diagnosis of kidney dysfunctions and diabetes.
- Electrocardiography (ECG) devices – This machine can catch symptoms of arrhythmia, myocardial ischemia, and ST depression. They may also alert clinicians to cardiac chamber abnormalities and drug toxicities.
Regulatory compliance service involves implementing quality systems, compliance systems, risk assessment, and mitigation.
Clinical trial management services – Clinical trial management system is a set of essential tools to plan, manage, and track clinical study portfolios.
The Shift to Meet Demands
Diagnostic, monitoring, therapeutic, and surgical are the major segments in the medical device market due to the growing aging population and increasing incidence of chronic diseases.
North America is still the largest region due to a large patient pool and high adoption rates of advanced treatment protocols. Close on its heels in Europe. The Asia Pacific is now witnessing the highest growth over the forecast period due to growing awareness about health, increasing per capita income, and improving healthcare infrastructure.
The emerging trends that directly impact the industry include AI-optimized medical devices, increasing use of miniaturized wearable medical devices, and growing 3-D printing in medical devices.
Key Players in the Market
We have studied major players providing outsourcing and consulting services in this area.
The list of companies profiled:
- Capgemini
- Tata Consultancy Services (T.C.S.)
- Wipro
- Infosys
- H.C.L.
- Cognizant
- Accenture
Our study includes outsourcing workloads of these companies in remote patient monitoring, therapeutic devices, manufacturing, R&D, care management, quality management, etc., across service lines, namely, Design & Development, Testing & Automation, Sustenance & Maintenance, and Regulatory Compliance & Support Services.
The clients involved in distributing these medical devices include Medtronic, Boston Scientific, Hitachi, Cochlear, Phillips, Johnson & Johnson, Abbott, and G.E. Healthcare, to name a few.
This research report will help you understand the global medical devices market to make confident business decisions in this competitive market. Draup provides real-time sales signals that empowers sales teams with the right insights to help them close deals. The proprietary AI-powered sales intelligence platform is powered by data from over 4,000+ sources.
