European Medical Devices Industry Assessment -- A Symptomatic Evaluation

Like this? Share it with your network

Share

European Medical Devices Industry Assessment -- A Symptomatic Evaluation

  • 6,698 views
Uploaded on

An analyst briefing presentation delivered by senior research analyst Sree Vidhya Praveen.

An analyst briefing presentation delivered by senior research analyst Sree Vidhya Praveen.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
6,698
On Slideshare
6,697
From Embeds
1
Number of Embeds
1

Actions

Shares
Downloads
205
Comments
0
Likes
6

Embeds 1

http://paper.li 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Medical Devices Industry Assessment
    – A Symptomatic Evaluation
    Sree Vidhya Praveen
    Senior Research Analyst
    Medical Devices
  • 2. Agenda
    Medical Device Industry: A Symptomatic Evaluation
    Medical Device Industry – A Brief Outlook
    Macroeconomic Trends Affecting Medical Device Market
    Medical Device Market Segment Analysis
    Medical Device Industry Competitor Analysis
    Mergers and Acquisitions in the Medical Device Industry
    Health Care Regulations Across Europe
    Conclusion
  • 3. Medical Device Industry – A Brief Outlook Macroeconomic Trends Affecting Medical Device Market Medical Device Market Segment Analysis Medical Device Industry Competitor AnalysisMergers and Acquisitions in the Medical Device Industry Health Care Regulations Across Europe
  • 4. Market Segmentation
    2010
    MEDICAL DEVICE MARKET
    USD 296.81 Billion
    (GLOBAL)
    Medical Device Market: Segmentation (World), 2010
    SEGMENT 2011 STAR RATING
    NOTE: Star rating for segments is to represent the potential markets within the medical device industry in 2011
    Source: Frost & Sullivan
  • 5. Historical Revenue of Medical Device Market
    Medical Device Market: Total Revenue (World), 2007-2011
    Technology innovations, demographics and hospital austerity measures will drive the global medical device market above USD 300 billion in 2011
    Revenue ($ Billion)
    Source: Frost & Sullivan
  • 6. Cross-regional Comparison of Economic Recovery
    After a brief lull, the Medical Device Industry has quickly rebounded
    2008 2009 2010
    Fading Recession
    Slow Economic Activity
    Rise in Unemployment
    Decrease in consumer Spending
    “Signs of Growth”
    Medical Device Market: Cross-regional Revenue Comparison (World), 2007-2011
    Revenue ($ Billion)
    Source: Frost & Sullivan
  • 7. Challenges ahead for Europe
    Rising unemployment
    Challenges
    Ageing population
    Austerity measures
    Medical Device Market: Key Challenges (Europe), 2011-2015
    Source: Frost & Sullivan
    Rising unemployment, an ageing population and strict austerity measures could impede long term growth prospects in Europe.
    Austerity measures were announced by several European governments, towards the end of Q3 2010, in a bid to improve government finances and the confidence in their economies. Germany led the way with USD 96.0 billion in spending cuts between 2011 and 2014. Greece, Ireland and Spain also announced deficit reducing measures and the French government is pushing to reduce pensions. While these policies will improve the state of government finances, they will also lead to increased unemployment and reduce domestic demand driving down consumption.
    Western Europe's ageing population will provide challenges and opportunities in the future as the share of the population aged 65 plus and is forecast to rise from 16.4 percent of total population in 2010 to 18.7 percent in 2020. The increase in the number of pensioners will place added stress on government finances, but it will also provide opportunities for some sectors like health and medical services and leisure.
    Unemployment will continue to be a concern particularly in Spain, Greece, Turkey and Ireland. Unemployment rate in Spain is forecast to exceed 20.0 percent in 2011 and is expected to taper down to 15.0 percent by 2020. These high levels of unemployment will continue to suppress consumer spending and make economic recovery difficult.
  • 8. Medical Device Industry – A Brief Outlook Macroeconomic Trends Affecting Medical Device Market Medical Device Market Segment Analysis Medical Device Industry Competitor AnalysisMergers and Acquisitions in the Medical Device Industry Health Care Regulations Across Europe
  • 9. European Macroeconomic Forecast
    Western Europe's GDP contracted by 4.1 percent in 2009 as the global economic crisis of 2008-’09 hit every economy in this region. This led to annual disposable incomes to decline, dragging down consumer expenditures in most sectors including Medical Devices.
    Unemployment remained a problem in the EU-27 where it held at 9.6 percent for most of H1 2010, but there is a divergence between the economies. From September 2009 to July 2010 German unemployment dropped from 7.6 to 6.9 percent as the economic recovery progressed. Meanwhile, Spain's massive unemployment problem has only deepened from 19.0 to 20.3 percent over the same period.
    Adding on to this will be the ageing populations of Western European countries which remains a liability for future economic growth as the share of economically productive citizens decreases while the state pension burden increases. This will affect consumer spending patterns with expenditure on every sector including health goods and medical services.
    General Market: Macroeconomic Forecast (Europe), 2000-2014
    Source: Oxford Economics
  • 10. Is the Recovery Sustainable?
    General Market: Real GDP Growth (Western Europe), 2005-2010
    GDP Growth Rate (%)
    Year
    Source: Frost & Sullivan
    Recovery Factors
    Restraining Factors
    • Western Europe’s economic activity returns to growth
    • 11. Fiscal stimulus packages in developed and developing markets further encourage consumer spending and boost manufacturing
    • 12. Emerging markets to lead Western Europe out of recession
    • 13. A shift from export to consumption-led growth in key markets like Germany
    • 14. Specter of unemployment remains
    • 15. Increase in the number of pensioners will place added stress on government finances
    • 16. Indebted consumers unlikely to return to old consumption patterns in the short term
    • 17. Austerity measures, higher taxes, public spending cuts is expected to drive down consumption in all the sectors
  • Historical Pattern of Healthcare R&D Investment
    India and China are the hottest R&D destinations
    New frontiers in Medical technology and Pharmaceutical industries are investing in the East aggressively
    Medical Device Market: Historical Pattern of Healthcare R&D Investment (World), 2005-2010
    R&D Investment is Rising in the East
    Low Average High
    Source: Frost & Sullivan
    Year
  • 18. Medical Device Industry – A Brief Outlook Macroeconomic Trends Affecting Medical Device Market Medical Device Market Segment Analysis Medical Device Industry Competitor AnalysisMergers and Acquisitions in the Medical Device Industry Health Care Regulations Across Europe
  • 19. 2010 Medical Device Market Revenue
    Medical Device Market: Total Revenue (World), 2010
    Source: Frost & Sullivan
  • 20. Segment Revenue Analysis
    Medical Device Market: Total Segment Revenue (World), 2008 to 2011
    Source: Frost & Sullivan
  • 21. Cosmetic Surgery and Lifestyle Products
    Rhynoplasty
    Chemical Peeling
    Microdermal Abrasion
    Skin Resurfacing
    Aesthetic Hair Removal Laser Treatments
    Dermal Fillers (Collagen based)
    Breast Enhancement
    Liposuction and Body contouring
    Botox Therapy & Others
    Cosmetic Surgery and Lifestyle Product Market: Revenue (World), 2008-2011
    Cosmetic Surgery and Lifestyle Products
    Revenue ($ Billion)
    Source: Frost & Sullivan
  • 22. Neurology and Neuromuscular Devices
    Neurosurgical Products
    Hydrocephalus Shunting Devices
    Neuroendoscopes
    Neurostimulation Devices
    Spinal Cord Stimulators
    Vagus Nerve Stimulators
    Interventional Neuroradiology Devices
    Aneurysm Clips and Stereotactic Systems
    Neurosurgical Therapeutic Products
    CyberKnife Radiosurgery and
    Others
    Stryker’s acquisition of the Neurovascular Division of Boston Scientific Corporation early in 2011 for USD 900 Million is an evidence of positive growth happening in the Neurology and Neuromuscular Segment Market.
    Neurology and Neuromuscular Device Market: Revenue (World), 2008-2011
    Revenue ($ Billion)
    Neurology & Neuromuscular Devices
    Source: Frost & Sullivan
  • 23. Ophthalmic and Optical Devices
    Ophthalmic Surgical Devices
    Electro Optical Devices
    Implantable Micro-Optic Devices
    Intra Ocular Lens
    Phacoemulsification Equipment
    Ophthalmic Viscoelastic Devices (OVD)
    Ophthalmic Lasers
    Refractive Surgery Devices
    (Microkeratomes)
    Ophthalmoscopes
    Optical Coherence Tomographyand Others
    Ophthalmic and Optical Device Market: Revenue (World), 2008-2011
    Revenue ($ Billion)
    Ophthalmic and Optical Devices
    Source: Frost & Sullivan
  • 24. Minimally Invasive Surgical Devices
    Minimally Invasive Surgical Devices find application across all segments in Medical Device Industry:
    Endoscopic Devices
    Electrosurgical Devices
    Monitoring and Visualization Devices
    Angiographic Devices with Installed Base
    Ablation Devices
    (Radiofrequency, Ultrasound etc)
    Cryosurgical Units
    Imaging Technology
    Medical Robotics
    Biopsy Devices
    and Others
    Minimally Invasive Surgical Device Market: Revenue (World), 2008-2011
    Revenue ($ Billion)
    Minimally Invasive Surgical Devices
    Source: Frost & Sullivan
  • 25. Anesthetic and Respiratory Devices
    Anaesthesia Machine/Workstations
    Patient Monitoring Systems
    Ventilators and
    Others
    Anesthetic and Respiratory Device Market: Revenue (World), 2008-2011
    Anaesthetic and Respiratory Devices
    Revenue ($ Billion)
    Source: Frost & Sullivan
  • 26. Cardiology and Thoracic Surgery
    Cardiac Rhythm Management Devices
    Interventional Cardiology Devices
    Cardiac Ablation Devices
    Cardiac Monitoring Devices
    Interventional Pulmonary Devices
    Thoracic Endoprosthetic Devices
    Pulmonary Function Test Monitors
    Pulmonary Diagnostic Devices and
    Others
    Cardiology and Thoracic Surgery Device Market: Revenue (World), 2008-2011
    Cardiology and Thoracic Devices
    Revenue ($ Billion)
    Source: Frost & Sullivan
  • 27. 2010 Medical Device Market Regional Analysis
    Medical Device Market: Percent Split of Revenues by Geographical Region (World), 2010
    Source: Frost & Sullivan
    The majority of medical device manufacturers' markets are set on a global basis and manufacturers are seeking expansion into new regions, such as Asia, Eastern Europe and Latin America, in order to achieve greater profits. In Europe, local companies usually have subsidiaries, direct sales offices or distributors in several European countries. Non-European companies tend to establish a head office in Europe and direct sales offices in major markets. The intensive coverage of the European sales territory has resulted in strong competition in all regional markets. Accordingly, local manufacturers do not have monopolies in their own countries, and smaller companies are forced to market their products on an international level.
  • 28. Medical Device Industry – A Brief Outlook Macroeconomic Trends Affecting Medical Device Market Medical Device Market Segment Analysis Medical Device Industry Competitor AnalysisMergers and Acquisitions in the Medical Device Industry Health Care Regulations Across Europe
  • 29. 2010 Global Competition in Medical Device Market
    The medical device industry is facing a high degree of consolidation, which has led to strenuous competition. The major participants in the market try and acquire the smaller ones, making it difficult for the niche participants to survive. Brand loyalty of devices forms an additional factor that creates vexatious platform to the new entrants, because customers have relatively high attitude towards the brand which reflects in their repurchase behaviour.
    Large Device Manufacturers’ Dominate Global Market
    Medical Device Market: Industry Competition (World), 2010
    “Segmentation is the key to success
    in this environment”
    Revenues ($ Billion)
    Source: Frost & Sullivan
  • 30. Global Market Share of Top Ten Industry Competitors
    Medical Device Market: Top Ten Industry Competitors Global Market Share (World), 2004 and 2010
    Fragmentation Provides Acquisition Opportunities
    Source: Frost & Sullivan
  • 31. Medical Device Industry – A Brief Outlook Macroeconomic Trends Affecting Medical Device Market Medical Device Market Segment Analysis Medical Device Industry Competitor AnalysisMergers and Acquisitions in the Medical Device Industry Health Care Regulations Across Europe
  • 32. Acquisitions Boost Business
    Transaction ($ Billion)
    Number of Deals
    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
    Year
    Medical Device Market: Mergers and Acquisitions (World), 2001-2010
    Source: Frost & Sullivan
  • 33. 2010 Major Acquisitions
    Medical Device Market: Major Acquisitions (World), 2010
    Revenue ($ Million)
    Acquirer - Target Company
    Source: Frost & Sullivan
  • 34. Medical Device Industry – A Brief Outlook Macroeconomic Trends Affecting Medical Device Market Medical Device Market Segment Analysis Medical Device Industry Competitor AnalysisMergers and Acquisitions in the Medical Device Industry Health Care Regulations Across Europe
  • 35. The UK corporate tax rate will be 26.0% from April 2011
    Corporate Tax (%)
    NOTE: Tax rate refers to the basic combined central and sub-central corporate income tax rate
    Medical Device Market: Corporate Tax (G7 Economies), 2010
    Source: OECD/ Frost & Sullivan
    2010 Corporate Income Tax Rate
  • 36. Healthcare Regulation Flow Chart
    Increasing Healthcare Expenditure
    Austerity Measures
    Government Health Reforms
    Encourage investment and exports as a route to a more balanced economy
    Increase in General Tax
    Promote competitive tax system Business rate relief for small firms
    Economy remains under pressure
    Consumer spending pattern remains low
    Inflation Rises
    “Manufacturer-Friendly” Governments on the Rise
    Threat for a “double-dip” recession
    Annual real term growth witnessed
    Medical Device Market: Healthcare Regulation Flowchart (World), 2010
    Government provides right environment for businesses to succeed by removing barriers that are preventing investors from performing to their complete potential
    End-User Perspective
    Manufacturer Perspective
    Source: Frost & Sullivan
  • 37. Key Take-away Messages
    Medical Device Market: Key Take-away Messages (World), 2010
    Medical Device Market is lucrative and sustainable
    1
    2
    3
    4
    5
    8
    7
    6
    Competition intensifies as private label share grows
    Global branding is a key strategy
    Medical Device Industry
    Global presence becomes more important in today’s competition
    Mergers and acquisitions boosts businesses
    Small to medium-sized acquisitions focus on geographic expansion
    Product innovation drives organic growth
    Manufacturer-friendly Governments are on the rise
  • 38. Next Steps
    • Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. (enquiries@frost.com)
    • 39. Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth occurring in London on 17 – 18 May 2011. (www.gil-global.com)
    • 40. Register for Frost & Sullivan’s Growth Opportunity Newsletter and keepabreast of innovative growth opportunities (www.frost.com/news)
  • Your Feedback is Important to Us
    What would you like to see from Frost & Sullivan?
    Growth Forecasts?
    Competitive Structure?
    Emerging Trends?
    Strategic Recommendations?
    Other?
    Please inform us by rating this presentation
    Frost & Sullivan’s Growth Consulting can assist with your growth strategies
  • 41. Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter
    http://www.facebook.com/FrostandSullivan
    http://www.linkedin.com/companies/4506
    http://www.slideshare.net/FrostandSullivan
    http://twitter.com/frost_sullivan
  • 42. For Additional Information
    Katja Feick
    Corporate Communications
    Healthcare
    0049 (0) 69 7703343
    katja.feick@fost.com
    Noel Anderson
    European Vice President
    New Business Development
    +44 (0)207 343 8389
    noel.anderson@frost.com
    Siddharth Saha
    Director of Research
    Healthcare
    + 44 (0) 207 343 8374
    siddharth.saha@frost.com