Global Medical Device Industry Outlook Survey 2011â€“2012
Increased levels of consolidation in the industry is expected, with 70% of respondents predicting there will be an increase in merger and acquisition activity over the upcoming 12 months. There are many factors which have contributed to the switches to inorganic growth, including, high operating and R&D costs, rising competitions, stringent government regulations and business competence to name a few.
Johnson & Johnson lead the global medical device industry, with the top 10 companies collectively covering 45% of the market making it highly fragmented. A department head of a medical device industry supplier company based in Asia-Pacific states:
â€œThe current medical equipment market is highly fragmented and unstructured in this region, and is likely to witness a number of acquisitions to improve growth through collaborative efforts in technology, R&D and innovation.â€
Future development expectations for companies include enhancing their operational efficiency through software and technology upgrades, increasing capacity utilization and expanding capacities and production levels. Sikorsky Aerospace Services launched its new LUH Helotrac 2X maintenance management software system in March 2011. The software will support the US Army's UH-72A Lakota light utility helicopter (LUH) program. A manager from an aerospace industry supplier operating in Asia-Pacific states:
â€œWe plan to scale up our operations to enhance capacity and increase operational efficiency.â€
China, Brazil and India have been identified by respondents as offering the most growth among the emerging markets. It is expected that there will be an increase in demand for medical equipment and other support services due to the expansion of business activities, stronger economic growth compared to other regions in the world, government funding and reforms, changing consumer lifestyles.....Among the developed regions US, Singapore, Taiwan, Hong Kong, South Korea, Germany and Canada have been identified as the most important regions for growth.
On average the marketing budgets of medical device industry suppliers are expected to increase over the next 12 months. It is estimated there will be a minimum 10% rise in marketing budgets, indicating a period of recovery and restoration of confidences following the global economic crisis. In 2011 there has been a rise in the global annual marketing budget for the medical device industry supplier companies since 2010. However, 79% of companies intend to keep budgets low, spending less time and money on marketing strategies.
ICD Research is a full-service global market research agency and premium business information brand specializing in industry analysis in a wide set of B2B and B2C markets. ICD Research has access to over 400 in-house analysts and journalists and a global media presence in over 30 professional markets enabling us to conduct unique and insightful research via our trusted business communities.
Through its unique B2B and B2C research panels and access to key industry bodies, ICD Research delivers insightful and actionable analysis. The ICD Research survey capabilities grant readers access to the opinions and strategies of key business decision makers, industry experts and competitors as well as examining their actions surrounding business priorities.
To purchase ICD Research pharmaceutical and medical devices industry reports, please click here.