Displaying more robust vitals than most business sectors, the U.S. medical device industry has remained very healthy despite a feeble economy. In fact, the industry is growing at an estimated compound annual rate of about 8%. And the country has been able to sustain a trade surplus of $4-5 billion every year from medical device sales to foreign markets.

Consulting company Frost & Sullivan predicts strong growth for several sectors of the industry, including cardiovascular products, orthopedics and devices that enable less invasive medical procedures.

Cardiovascular products still represent the biggest single sector of the device industry, says Charlie Whelan, industry manager for Frost & Sullivan, who was a presenter during the company's February Webcast outlining a 10-year forecast for the industry. The cardiovascular market is "one of the most competitive and rapidly changing in the industry, and is expected to grow significantly in coming years," Whelan notes.

Additionally, "orthopedics will remain one of the largest and fastest growing device sectors," he asserts. "Reconstructive implants are the largest segment of that market and it will continue to grow," he says, although not quite as rapidly as the spinal and biologics segments, which are expected to surge much more dramatically.

Representing another dynamic industry sector, devices that allow minimally invasive surgery in all forms of medicine are expected to show substantial growth, says Whelan, particularly as these procedures become the norm for more treatments.

Several factors are influencing the device market that will take form in 2013, and these issues include shifting disease patterns and an aging population. "Certainly, as the number of aging Americans continues to grow, cost-containment and the ability to maintain adequate staffing and facility capabilities will remain a priority," explains Whelan.

According to Frost & Sullivan's analysts, medical research and technology will place less emphasis on infectious diseases and acute ailments and will more seriously address the costly and incapacitating effects of chronic disease. Manufacturers will likely "respond in kind with better technology to reduce costs and improve the lives of these patients," says Whelan. "We are likely to see greater advances in the development of restorative or implantable devices that allow patients with chronic conditions to regain more of their original health." As illustrations of this restorative trend, he points to Medtronic's artificial pancreas and AbioCor's artificial heart.

Another development to watch out for, analysts say, is the growing collaboration among the fields of information technology, medical imaging, pharmaceuticals and medical devices because such synergies could produce therapies with unprecedented clinical benefits. "Drug eluting stents and telemedicine are two examples of this growing trend," notes Whelan.

Cosmetic procedures are also thriving, climbing from about two million procedures in the U.S. in 1997 to over 9 million last year. "As patients continue to make their own quality of life an important healthcare priority and are willing to invest their own money in these treatments, manufacturers of associated devices will experience significant growth," says Whelan.

Businesses seeking to introduce new products, secure market share and drive long-term growth should consider several strategies, says Whelan. One such tact is using continuum-based methods for evaluating the potential of pursuing a new technology. "By examining the context in which treatment for a patient's condition is delivered, manufacturers can spot ways to improve treatment with new technology," he explains.

For example, "manufacturers should use continuum-based strategies to identify where there are significant labor limitations in care delivery because of shortages of nurses and doctors," says Whelan. "After identifying these needs, manufacturers will be able to successfully launch technologies such as remote patient monitoring, minimally invasive products that allow for outpatient procedures, and products that allow patients to care for themselves in a market eager for ways to save time, effort and money."

Indeed, the fact that nurses and doctors will be in short supply provides a tremendous opportunity for medical technology. "The United States faces a serious shortage of nurses and primary-care physicians that will continue to have serious consequences on our healthcare infrastructure and ultimately lead to higher healthcare costs because of a lack of sufficient preventative care," notes Whelan. In fact, according to the American Association of Critical-Care Nurses, over one million nursing positions will be unoccupied by 2008. Additionally, only a third of the country's practicing doctors are dedicated to primary care, in sharp contrast to other countries where most physicians are primary care providers.

Medical device companies that respond to the needs that arise from these labor shortages can tap into robust markets. By employing such continuum-based strategies and taking note of what sectors are the most dynamic, they can capture more market share, successfully launch new products and keep growing in this vital industry.

Source: Hot Medical Sectors to Watch in Coming Years
Gregg Nighswonger
Medical Device & Diagnostic Industry, April 2003
http://www.devicelink.com

Primer Links

Organizations

Advanced Medical Technology Association http://www.advamed.org/

Association for the Advancement of Medical Instrumentation http://www.aami.org/

U.S. Food and Drug Administration http://www.fda.gov/

Publications

Bioscience Technology http://www.biomedicalproducts.com/scripts/currentissue.asp

Medical Design News http://www.medicaldesignnews.com/

Medical Design Technology http://www.mdtmag.com/scripts/default.asp

Medical Devicelink http://www.devicelink.com/