Frost: Demand for Better Therapies Maintains Growth of Medical Device Manufacturing
April 26, 2008 // Published as a news service by IHS
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According to Frost & Sullivan, this trend, coupled with surgeons' willingness to adopt innovative technologies, has considerably benefited the U.S. medical devices market.
Recent analysis from Frost & Sullivan of the U.S. medical devices market found earned revenues of $75.57 billion in 2006, with estimates to reach $138.99 billion in 2013.
The medical device market's R&D efforts have to match the pace of innovations across all segments of treatment, analysts said, as hospitals are looking to reduce surgery and recovery times and offer surgeons better treatment options.
Analysts said the spate of inventions has had a huge impact on the entire health care industry, making the medial device segment a leader in the U.S. economy.
"The medical device industry has witnessed dramatic shifts, from highly invasive surgical procedures to minimally invasive surgical techniques," said Frost & Sullivan research analyst Archana Swathy. "These methods offer patients reduced pain and discomfort, easing the burden on the health care setting."
This shift has also helped decrease the number of inpatient procedures and wait for surgeries wherever applicable, analysts said. Even segments involving invasive approaches are likely to witness transition toward minimal invasiveness.
Despite the sophistication of technology and the expertise that goes into product development, there have been extensive product recalls and reports of device-related deaths. Analysts said these incidents have cost the market, since eroding customer confidence and disinterest in a therapy have impeded device penetration and market expansion.
"Using the most cost-efficient materials is a critical component in the design of medical devices in order to ensure affordable health care technology," said Swathy. "Moreover, it would be impracticable to monitor a device performance for seven to eight years before product launch."
Analysts said manufacturers must rely on projections and assumptions, which may not provide an accurate analysis of product reliability. The medical device market can regain customers by establishing the results of clinical trials.
Manufacturers' product launches largely hinge on clinical evidence about the long- and short-term efficacy of the product involved. Analysts said these trials will eliminate the apprehensions of late adopters.
Positive clinical trial data will also greatly help increase the reimbursement coverage for devices and procedures. Analysts said the market will gain a substantial boost through stronger sales and marketing efforts targeted at primary care providers or their referred specialists.
Source: Frost & Sullivan.