The medical device and biotechnology sectors are hotbeds of innovation. Since 2007, The Prix Galien is an annual award ceremony that celebrates the most innovative products emerging from the industry. In 2019, companies like Spark Therapeutics, GlaxoSmithKline, and Abbot received awards for their efforts to improve human health using unique medical products.
Advances in medical technologies continue to drive the market. The latest solutions range from glucose monitoring patches to in vitro diagnostic devices. To qualify for The Prix Galien awards, the product should have FDA approval (granted within the last five years) and must present a great potential for improving healthcare. Considering that the healthcare industry grows by 3.5% annually and total revenue in 2019 exceeded $1 trillion, it’s no wonder that the healthcare technology sector has many startups.
According to Fortune Business Insights, the global medical device and technology market will grow from $424.5 billion in 2018 to $612.7 billion by 2025. That’s a compound annual growth rate of 5.8% year over year. As these devices help healthcare practitioners treat and diagnose ailments, they are vital for providing better quality care for patients. Combined with the benefits, the main contributors to the industry’s growth are aging populations and the rise of chronic disease, as well as more complex surgical procedures.
Of these devices, in vitro diagnostic (IVD) devices maintain the largest share, accounting for 12.9% of the market in 2018. Orthopedic, cardiovascular, and diagnostic imaging devices make up the bulk of the remaining market, with less than 50% shared between other technologies. The biggest purchasers of the technologies were hospitals and ambulatory surgical centers. Rising healthcare expenditures, lucrative reimbursement policies, and a focus on better patient outcomes will continue to drive the market until 2025.
Although the U.S. medical device market totaled $169.3 billion in 2018, the manufacturing of devices will only account for $41.6 billion in 2020. This is a steady increase from 2016, but only amounts to a 0.3% increase of annualized market growth in the U.S.
Compared to other industries, the U.S. medical device manufacturing sector is yet to mature. Currently, the U.S. sector ranks 42nd globally and 246th compared to other US manufacturing industries. This is due to stiff competition from other global manufacturers. But the U.S.’s aging populations and an expected increase in physician visits may serve manufacturers better in the future.
The health industry in the U.S. employs almost 2 million people, with well over 300,000 of these directly involved in medical technologies. However, more than 80% of U.S. medical device companies employ 50 or fewer employees and many have little to no sales. This indicates they’re still in the startup phase of their operations.
Sonic Manufacturing is a medical device contract manufacturing company headquartered in Fremont, California. With extensive engineering support, a quality-certified manufacturing process, and more than 20 years of experience, we can help bring your next innovative product to market.
We work with teams in San Jose, Silicon Valley, Sunnyvale, Palo Alto, Burlingame, and Mountain View. For medical device product teams that need access to manufacturing capabilities that ensure the quality of their products, Sonic can assist with prototyping, manufacturing instructions, supply chain logistics, and complete turnkey solutions.
To find out more about our medical device contract manufacturing services, get in touch with Sonic Manufacturing today.