A Frost and Sullivan analysis, providing an outlook for the medical devices market into 2018, advised device manufacturers from pinning their hopes on a “build it and they will come” strategy to gain emerging market share.
The analysis explains that a variety of pressures is forcing medical device makers to rely on emerging markets to grow revenue, but strategies for these markets need to be fine-tuned to consider variations within each market, said Venkat Rajan, industry manager, medical devices, in a multimedia presentation.
Historically, the strong growth, profitability and more importantly, the predictability of certain developed markets minimized the necessity for globalization. However spending caps and reimbursement cuts in the U.S., austerity measures in Europe and a recession in Japan have companies depending on their emerging market strategies like never before. Unfortunately, this is not a market where the adage “Build it and they will come” applies.
Due to the variations within each country and even in regions within those countries, gaining traction and adoption is no simple task. As many other industries have come to realize, simply selling the same device from the U.S. as is does not always resonate with the needs and requirements of many emerging markets Those needs go beyond simple price and most take into account the healthcare infrastructure and skill set of its practitioners.
AdvertisementThe market has also seen a significant rise in competition from local manufacturers establishing spheres of influence in various parts of the globe. In the minds of many, these competitors represent a long term threat to the market leaders than the current roster of players that they currently jockey for share with.
The 2012 United States Medical Devices Outlook also forecast that the U.S. market will grow to $156.8 billion in 2018, representing a 6.3 percent compounded annual growth rate from $102.1 billion in 2011.
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By Arundhati Parmar
Arundhati Parmar is the Medical Devices Reporter at MedCity News. She has covered medical technology since 2008 and specialized in business journalism since 2001. Parmar has three degrees from three continents - a Bachelor of Arts in English from Jadavpur University, Kolkata, India; a Masters in English Literature from the University of Sydney, Australia and a Masters in Journalism from Northwestern University in Chicago. She has sworn never to enter a classroom again.More posts by Author
@imarcresearch Thanks!