DRIVING FACTORS FOR THE MEDICAL DEVICE INDUSTRY

Rising Prevalence of Chronic Diseases to Boost Demand for Medical Devices

There is a growing prevalence of chronic disorders, including diabetes, cancer, and other infectious diseases, owing to the adoption of sedentary lifestyles and other factors. Also, healthcare agencies of various countries are focusing on increasing the diagnosis and treatment rates through the growing number of awareness programs. With the rising prevalence and awareness of such conditions among the population, the patient population requiring diagnostic procedures and tests is also increasing.

For instance, according to the International Diabetes Federation (IDF), an estimated 537 million people in 2021 suffered from diabetes, which is projected to rise to 643 million by 2030 and 783 million by 2045.

Also, a rapid rise in the geriatric population is increasing the demand for ophthalmic and orthopedic procedures due to increasing incidence of impaired vision and joint fractures in the elderly population.

For instance, according to a 2021 data published by Osteoarthritis Action Alliance, annual incidence of knee osteoarthritis is highest between the age group of 45-65 years and 45% of the people with osteoarthritis are aged 65 or above.

This is fueling the growing demand for medical devices in these countries.


Shift towards Homecare Settings is Boosting Demand for Portable Devices

For instance, according to a 2021 article published by the American Journal of Managed Care (AJMC), in a recent randomized trial evaluating patients treated in a hospital setting and patients treated in a hospital-at-home setting, there was 19% cost reduction in home care management.

Due to increasing economic burden and rising population aged above 60, there is a paradigm shift of preference toward home healthcare services among the population. Additionally, with increasing efforts of key players and healthcare agencies to develop and launch new and easy-to-use medical equipment, such as portable and wearable devices for the treatment of chronic diseases, the adoption of home healthcare services is rapidly rising in developed countries.

In March 2021, Shimmer Research, a global leader in wearable technology applications, launched Verisense Pulse+, a new sensor for the Verisense platform providing photoplethysmogram, galvanic skin response, and an inertial measurement unit. The device can measure clinical trials patients’ heart rate, oxygen saturation, and emotional responses in addition to their activity and sleep levels.

The market players offering devices that were prominently used for procedures that were considered elective, such as orthopaedic, dental procedures, and other surgeries along with diagnostic imaging equipment witnessed a significant decline in revenues in 2020 as compared to 2019.

Similarly, Johnson & Johnson Services, Inc. generated a net revenue of USD 22.96 billion in the financial year 2020 witnessing a decline of 11.6% as compared to 2019, wherein the company generated a net revenue of USD 25.96 billion.

Import and Export Trend in Indian Medical Device Market

 The import of medical devices has grown from USD 2.46 bn (INR 15,990 crores) in FY12 to USD 2.87 bn (INR 18,655 crores) in FY16. The export of medical devices has grown from USD 0.78 bn (INR 5,070 crores) in FY12 to USD 0.98 bn (INR 6,370 crores) in FY16. Between FY12 to FY16, the import trade of medical devices has increased by 16.8 per cent, whereas export trade has increased by 25.7 per cent.

Diagnostic imaging (e.g. CT scan, X-Ray, MRI, USG, X ray-tubes etc.), IV Diagnostic (lab equipment and reagents, etc.) and Other Medical Device (ECG, opthal equipment, heart lung machine, etc.) form 70% of total import in India in FY16. USA, Germany, China, Japan, and Singapore constitute the five largest exporters of high technology medical equipment to India.

Diagnostic imaging, consumables and other medical devices form 86 per cent of total export trade in India in FY16. Amongst the exporters’ portfolio, USA was the chief destination for export and contributes close to 15 per cent of the export trade. Singapore, Germany and China were the other leading export destinations with shares of 7.0 per cent, 6.7 per cent and 6.4 per cent respectively.




Foreign Direct Investment and Other Investment in Indian Medical Device Sector

In January 2015, Government of India modified the FDI regulations allowing 100 per cent FDI under automatic route in Greenfield and brownfield projects in medical device sector. USA, Europe and Japan are the key source countries for FDI in medical devices. The equipment and instruments, consumables and implants segments have attracted the most FDI.












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