The medical technology industry is a renowned part of the overall healthcare sector. In an online and interconnected world, health information technology (HIT) is an increasingly important part of the medtech branch. HIT involves the sharing and analysis of health data through electronic health records which should enable more coordinated and accurate care, although privacy concerns remain among some patients.
The overall industry has an annual size of over 500 billion U.S. dollars and will continue to grow over the next years. The largest segments within the industry, by revenue, are in vitro diagnostics (IVD), cardiology, medical imaging, and orthopedics. The area of digital health and telemedicine should continue its rise in use and importance, after seeing a huge increase in use and interest in response to the COVID-19 pandemic. These solutions have been marketed as a route to more efficient experiences for both the patient and the healthcare provider.
The global medtech industry’s revenue stood at approximately 536 billion euros in 2021. This represented a 63 percent increase since 2010, and the market was forecast to increase to around 633 billion euros by 2024. Research and development plays a significant role in the progress of medtech as companies continually pursue the most cutting-edge technologies in healthcare. Over 17 billion U.S. dollars was spent on R&D by the largest 10 medical technology companies in 2021.
In vitro diagnostics (IVD) was the leading segment of medical technology globally with a market share of 18 percent. In vitro refers to any tests that diagnose and detect diseases, infections, and other conditions. IVD can range from very simple devices which a person could use in their own homes to very complex instruments used in a laboratory. The IVD market was forecast to increase to over 188 billion U.S. dollars by 2030.
Digital health has become a more prominent presence in recent years, and the segment was forecast to continue growing. The market for telemedicine was projected to increase from 45 billion U.S. dollars globally in 2019 to nearly 180 billion U.S. dollars by 2026. Telemedicine has been particularly important since the beginning of the COVID-19 pandemic, with patients hesitant to travel for non-urgent appointments.
In 2021, Medtronic Inc. was the leading medical technology company in the world, with a revenue of over 31 billion U.S. dollars. Founded in 1949, Medtronic is a U.S. company currently headquartered in Minnesota but with executive offices in Ireland. Abbott Laboratories, also a U.S. company, had the second-highest revenue at 30 billion U.S. dollars. Medtronic were forecast to continue to be the largest medtech company until at least 2028.
The U.S. and Western Europe are the most established hubs of the medtech industry, generating the largest share of the global revenue. Consequently, most of the top medtech companies come from these two regions. Asia, and particularly China, are expected to become more prominent within the global industry in the future. In the past 10 years, the medtech industry China has increased very significantly in value.
The medical technology category offers data on the products and services used in the healthcare sector. Encompassed within this division are assistive devices, digital health, implantable devices, and overall medical equipment that functions to prevent, diagnose, or treat diseases and illnesses. Among the most prominent medical technology products are, but not limited to, pacemakers, imaging instruments, dialysis machines and implants. Medtech is a multi-billion dollar industry for the companies involved in the industry, with operations taking place on a global scale.