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Global Medical Equipment Market | Overview and Segmentation

Since 2001, the medical equipment market has shown stable growth with an annual multibillion-dollar increase in the trade volume.

The only exception was the year of 2015, when the world sales volume reduced, experiencing the pressure of sharp currency fluctuations against the backdrop of an excessively strengthened US dollar. As a consequence, the medical equipment sales declined from $196 billion in 2014 to $189 billion in 2015. “The rising US dollar is the villain behind 2015 results,” says John-David Lovelock, Gartner research vice-president. However, these difficulties have moved aside in 2016. The medical equipment market reached the pre-crisis level, rose to $196 billion, and set a new historical maximum in 2017, hitting the $207 billion mark. Analysts predict a long-term rising trend with an at least 5% increase in sales in 2022.

Such a rapid increase is caused by the growing demand, first of all, for the most voluminous market segment which includes the following product groups:

Blood pressure measuring instruments and equipment, endoscopes, hemodialysis equipment (artificial kidneys, artificial kidney machines, and dialyzers), diathermic equipment, blood transfusion equipment, anesthesia equipment and devices, nerve stimulation equipment.

Their market share equals 25.4%, and the world sales turnover reached almost $53 billion, amounting to $52.539 billion in 2017.

Global Medical Equipment Market | Overview and Segmentation

A similar trend is shown by the second in-demand group of healthcare products, which includes catheters, cannulas, and similar instruments (except needles and syringes). The year 2015 brought a slight slowdown in the growth rates. However, in 2016, the situation not just improved but also broke another record: sales turnover increased by almost $2 billion if compared to 2015. Therefore, in 2017, the sales volume in this segment amounted to $26.133 billion or 12.6%, of the world’s volume.

Global Medical Equipment Market | Overview and Segmentation

The third leader in the medical equipment market is a vast segment which includes products used in orthopedics and fracture treatment, with crutches, surgical belts, and bandages among them; splints and other aids and appliances carried along, worn on the body, or implanted in the body to compensate for a defect in an organ or its malfunction (except for artificial body parts, hearing aids, and cardiac pacemakers). In 2016, their total sales volume surpassed the pre-crisis amount and reached the $20.881 billion mark, and in 2017, it amounted to $22.58 billion or 10.9% of the total market volume.

Global Medical Equipment Market | Overview and Segmentation

According to analysts, the growing medical equipment market does not utilize its full potential. Unused resources availability gives the green light to both new enterprises, looking for opportunities to enter the market, and vested market players, wishing to increase production and sales volumes on the sub-regional domain. To assess the expected prospects, we have included the “export potential” indicator in this analysis. That is the indicator of the potential capability to produce and sell the necessary quantity of competitive products for the external market.

Based on the 2017 results, such potential export volumes are estimated for the following product groups:

“Blood pressure measuring instruments and equipment, endoscopes, hemodialysis equipment (artificial kidneys, artificial kidney machines and dialyzers), diathermic equipment, blood transfusion equipment, anesthesia equipment and devices, nerve stimulation equipment”: the export potential is at least $18.7 billion, which is more than 35.6% of the sales volume in this market segment.

With catheters, cannulas, and similar instruments (except needles and syringes), the export potential is $10.2 billion or 39%.

“Products used in orthopedics and fracture treatment, with crutches, surgical belts, and bandages among them; splints and other aids and appliances carried along, worn on the body, or implanted in the body to compensate for a defect in an organ or its malfunction (except for artificial body parts, hearing aids, and cardiac pacemakers): the export potential equals $7.9 billion or 35%.

As you see, the total export potential of these product groups is estimated at $36.8 billion, which creates additional (potential) growth opportunities and, in combination with stable demand, lays the foundation for an upward trend in these market segments in the long run.

The product groups of the mentioned three “winner” segments cover more than 48.9% of the world’s market volume, and their growth dynamics is absolutely identical. Therefore, they are the “driving force” of the industry and set the general trend on the market.

The rest of the market segments are inferior to those mentioned above in terms of imports volume expressed in monetary terms and show multidirectional dynamics. Nevertheless, considering that the capacity of any of them is hundreds of millions and billions of USD (which is comparable to the gross national income of small nations), they are no less appealing. We will overview these segments in our following article in more detail:

  • Ozone, oxygen, and aerosol therapy machines, artificial lung ventilation or other therapeutic breathing equipment.This equipment category is characterized by a steadily positive growth dynamics throughout the study period. Even in the most difficult years for the world economy, multibillion-dollar turnovers were confidently increasing and a new historical maximum was attained. The annual sales amounted to $7.64 billion or 3.7% of the total market volume. Besides, as of 2017, the export potential of this product group is estimated at $2.9 billion. This means that the market uses just 62% of its trading capacity, even though it experiences an increasing demand. Consequently, it will be able to find resources to maintain the trend, continuing to pick up the pace.

Global Medical Equipment Market | Overview and Segmentation

  • Mechanotherapy devices; massage machines; psychological tests equipment used to determine abilities. Like with the above-described case, the situation is completely opposite to the overall market trends. In contrast to the past negative picture of the world economic arena, an unprecedented growth in sales volumes was registered. The annual product turnover amounted to $5.272 billion or 2.5% of the market volume. In 2017, the segment export potential is estimated at $1.8 billion or approximately 34% of this market segment volume over the past year, which is the signal for the possible continuous growth in the long term.

Global Medical Equipment Market | Overview and Segmentation

  • Artificial body parts (except for dentures, dental connective parts, and artificial joints): as it turned out, this equipment category is highly subjected to currency fluctuations, which resulted in the half a billion drawdown in 2016. Fortunately, this massive financial pressure could not continuously hold back the growing demand for this group of merchandise. In 2017, the product turnover broke its own record and amounted to $12.458 billion, which constitutes about 6% of the total market. The significant market export potential, which is estimated at $4.0 billion or 32% of this market segment volume as of 2017, can be the signal for further turnover growth.

Global Medical Equipment Market | Overview and Segmentation

  • Artificial joints used in orthopedics. The decline in sales volume changed into fairly positive dynamics and record growth in 2016. These economic difficulties turned out to be a temporary phenomenon. As of today, this category appears at the peak of sales once more and is in massive demand: the annual imports volume amounted to $9.697 billion or 4.7% of the market volume. The market export potential is exploited only by ⅔ of the possible volume as of 2017 and is estimated at $3.1 billion. As a consequence, new growth spurts are expected.

Global Medical Equipment Market | Overview and Segmentation

  • Dental drills, discs, tips, and brushes to use in dental drilling machines. The product group shows a rather optimistic trend. The economic problems in 2015 made the market players, engaged in international medical equipment sales, wait for a more favorable time to enter the market. And when such a moment came in 2016, the market rapidly rushed up at once. In 2017, the annual import volume equaled $4.686 billion or 2.3% of the market volume. According to analysts, this trend will steadily persist in the future due to a significant export potential, which is estimated at $1.6 billion or 34% of the market in 2017.

Global Medical Equipment Market | Overview and Segmentation

  • Hearing aids: annual imports amounted to $4.336 billion or 2.1% of the market volume. Comparing the situation in the hearing aids market with other segments in the medical equipment market, it would not be correct to call it the market drawdown because the events were not the same as it was observed in other cases. The decline in sales occurred a year before the shocking events for the economy in 2015. In addition, the difference between the years 2013 and 2014 constituted only $0.138 billion. We can rather call the situation a market adjustment, after which, as it is expected, the trend diverted in the direction of growth. We should not forget about the export potential which is $1.6 billion or almost 37% of sales for this product group in 2017.

Global Medical Equipment Market | Overview and Segmentation

  • Ophthalmic instruments and devices, non-optical and optical. This product group completely restored its lost positions and set a new record in terms of sales volumes. In 2017, the product turnover amounted to $4,164 billion or 2% of the total market volume. In all probability, the market is not going to rest on its laurels due to the positive growth dynamics and a significant export potential amounting to $1.6 billion which is more than 38% of sales in 2017.

Global Medical Equipment Market | Overview and Segmentation

  • Dental connective parts, except for dentures. As the technical analysis of the growth diagram for this market shows, this specific market was buying time. However, in 2016, it reacted with rapid growth, having felt substantial support. Annual sales volumes amounted to $2.937 billion or 1.4% of the market volume. Besides, there is an additional handicap for further growth in the form of export potential, which constituted $0.963 billion or 32.7% for this market in 2017.

Global Medical Equipment Market | Overview and Segmentation

  • Tubular metal needles and needles for sutures. This market segment did not experience any significant shock from the currency rate fluctuations in 2015. The negative trend resulted just in a slowdown in growth from 2014 to 2015 with a tiny drawdown of $20 million. In 2016, a new sales volume record was hit. In 2017, the growth trend persisted and amounted to $2.96 billion or 1.4% of the market volume at the end of the year. The export potential for this group equals $1.2 billion or 40.5%, which is a very considerable value and precursor of growth in the long term.

Global Medical Equipment Market | Overview and Segmentation

  • X-ray tubes. In this medical equipment market segment, no significant progress in trade was observable: until 2016 this group of products successfully traded with average annual sales amounting to $1.740 billion per year. The year 2016 was a real breakthrough, bringing the increase in product turnover by $0.156 billion. In 2017, the upward trend maintained its direction and the annual sales volume amounted to $2.028 billion (or 1% of the market volume). The export potential was of a sufficient level reaching $0.737 billion (more than 36%) and preventing the upward trend of rates from slowing down.

Global Medical Equipment Market | Overview and Segmentation

  • Other respiratory equipment and gas masks, except for protective masks without mechanical parts and replaceable filters. This particular market segment did not experience significant fluctuations. Respiratory equipment was successfully traded until 2016 with an average annual sales volume of $1.4 billion per year. However, in 2017, the situation significantly improved and the product group reached a new historic maximum equal to $1.606 billion or 0.8% of the market volume. The export potential is also worth noting reaching the $0.625 billion mark or almost 39%, which will allow continuing the trade volume increase.

Global Medical Equipment Market | Overview and Segmentation

  • Electrocardiographs. This medical equipment market segment shows enviable growth rates: for the past 2 years the product turnover value expression grew 1.62 times, and in 2017, it amounted to $1.173 billion or 0.6% of the market volume. When compared to other market segments, its export potential is not so high, equaling $0.350 billion or 29.8% as of this market segment condition in 2017. However, it is sufficient to provide near and medium-term growth and show new sales record figures.

Global Medical Equipment Market | Overview and Segmentation

  • Dentures. Though this market segment set a new historic maximum, receiving $0,651 billion or 0.3% of the market volume in 2017, we, however, are talking about the fact that the product group of dentures got steady at the level of the $6 billion mark and successfully trades above it, trying to force its way up and rapidly grow. Judging by the export potential level, which amounted to $0.312 billion (being practically 48% of the annual product turnover in this market segment) in 2017, such a scenario is quite feasible.

Global Medical Equipment Market | Overview and Segmentation

  • Equipment operating based on ultraviolet or infrared radiation. The decline in imports volume was replaced by positive dynamics and record growth in 2017. The economic difficulties proved to be a temporary phenomenon. As of today, this medical equipment market segment is at the peak of sales once more and is in great demand. The annual import volume amounted to $0.375 billion or 0.2% of the market volume. The export potential is also high and constitutes $0.165 billion or 44% of the annual sales volume.

Global Medical Equipment Market | Overview and Segmentation

The upward trend for imports volume gradual recovery is observed in the following product groups:

Global Medical Equipment Market | Overview and Segmentation

Global Medical Equipment Market | Overview and Segmentation

  • Syringes: annual sales volume amounted to $5,035 billion or 2.4% of the market. As we can see from the commercial statistics, the overall picture is quite good. All the more so because the market in the nearest future may develop, exploiting its export potential to amount to at least $2.3 billion or 45.6% of the market volume in 2017.

Global Medical Equipment Market | Overview and Segmentation

  • Ultrasound scanning equipment: annual sales volume amounted to $4.767 billion or 2.3% of the market volume. After a slowdown in growth against the backdrop of global economic instability in 2015, the market is taking a recovery path. As of 2017, experts estimate the powerful export potential of this industry, equaling to at least $2.3 billion, which is more than 48% of the market volume in 2017. Evidently, the next year will preserve the positive development dynamics and bring the ultrasound devices market to a whole new level of economic growth.

Global Medical Equipment Market | Overview and Segmentation

  • Computed tomographs: the annual import volume amounted to $3.36 billion or 1.6% of the market volume. The year 2017 did not bring this market segment to its previous heights when compared with the pre-crisis index level. However, the computed tomographs market moves towards recovery, and the growth rates acceleration, combined with a strong export potential equaling $1.5 billion or 45% of the market situation in 2017, bring hope that the old limits will be broken in the nearest future.

Global Medical Equipment Market | Overview and Segmentation

  • Equipment operating based on X-rays, intended for the utilization in dentistry.The product group did not experience any particular difficulties in 2015. Over the past 2 years, it successfully enhanced its standing and trades in the range of $0.886 to 0.887 billion. The annual import volume in 2017 was $0.886 billion or 0.4% of the market volume. The significant export potential should not be ignored either. According to experts, it equals $0.355 billion or more than 40% of the sales volume in 2017. The market segment is waiting for favorable market conditions to continue its growth.

Global Medical Equipment Market | Overview and Segmentation

  • Dental drills combined or not combined on a single base with other dental equipment: annual imports volume amounted to $0.449 billion or 0.2% of the market volume. The years of 2015 and 2016 were the time of adjustments or the so-called market “setback” when the prices move in the opposite direction of the current trend. In 2017, the trade dynamics returned to its usual level, which, combined with a $0.213 billion export potential (or 47.4% of sales in 2017), signals about the persisting growth in the near and medium perspective.

Global Medical Equipment Market | Overview and Segmentation

  • Scintigraphic equipment. A year before the events in 2015, when the excessively strong US dollar shuddered the world trade, this product group had experienced a powerful readjustment and a decline in the imports volume in value terms. However, further on, the spring effect takes place. The forcefully compressed “spring” could not be held in position for long. The market segment made a drastic upswing and almost regained its lost positions in 2017. The annual imports volume constituted $0.367 billion or 0.2% of the market volume. It is worth noting in this case, however, that a (so far) relatively small import product group of scintigraphic equipment possesses the most powerful export potential on the medical equipment market, equaling to $0.97 billion. This is 264% more than the result received in 2017. Consequently, the next year may become a record one, and the growth trend may become long-term.

Global Medical Equipment Market | Overview and Segmentation

Global Medical Equipment Market | Overview and Segmentation

  • Cardiac pacemakers: the annual import volume amounted to $4.916 billion or 2.4% of the market volume. The year 2015 brought the market down. The difference between the sales volumes in 2014 and in 2017 constituted just under $1.5 billion. However, with comparatively reduced sales volumes, analysts note the growing export potential, which equaled $3.0 billion in 2017. Practically, this may indicate the possibility to reverse course for recovery and additional market commoditization by more than 61%.

Global Medical Equipment Market | Overview and Segmentation

  • Magnetic resonance imaging scanners: the annual imports volume amounted to $4.415 billion or 2.1% of the market volume. The difference in the imports volumes between the best one ($4.857 billion in 2014) and the worst one ($4.415 billion in 2017) over the study period is $0.442 billion. In spite of the market drawdown, it would be premature to speak about a slowdown in growth. Magnetic resonance imaging scanners are more likely to “settle” above the mark of $4.4 billion per year and are safely traded with an average annual product turnover of $4.584 billion. The export potential indicator, which amounted to $2.0 billion for the MRI scanners market in 2017, also shows 45% of the market’s undisclosed resources and the possibility to change to the growth in the near and medium perspective.

Global Medical Equipment Market | Overview and Segmentation

  • Equipment operating based on alpha, beta, or gamma radiation, intended for the medical, surgical, dental, or veterinary utilization. In this market segment, negative dynamics prevails. Since 2013, sales volumes have decreased almost 2 times reaching $0.293 billion or 0.1% of the market volume in 2017. The growth rates slowdown had started long before the 2015 crisis, which, nevertheless, significantly slowed down the sales decline pace. At the same time, we observe an increase in export potential, which reached $0.221 billion or 75.4% of the product turnover in 2017. Let us hope for a substantial situation improvement in the course of the next year...

Global Medical Equipment Market | Overview and Segmentation
12.07.2018
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