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European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
European Medical Devices Industry Assessment -- A Symptomatic Evaluation
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European Medical Devices Industry Assessment -- A Symptomatic Evaluation

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

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

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  1. Medical Devices Industry Assessment <br />– A Symptomatic Evaluation<br />Sree Vidhya Praveen<br />Senior Research Analyst<br />Medical Devices<br />
  2. Agenda<br />Medical Device Industry: A Symptomatic Evaluation <br />Medical Device Industry – A Brief Outlook<br />Macroeconomic Trends Affecting Medical Device Market <br />Medical Device Market Segment Analysis<br />Medical Device Industry Competitor Analysis<br />Mergers and Acquisitions in the Medical Device Industry <br />Health Care Regulations Across Europe<br />Conclusion<br />
  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<br />
  4. Market Segmentation<br />2010<br />MEDICAL DEVICE MARKET<br />USD 296.81 Billion<br />(GLOBAL)<br />Medical Device Market: Segmentation (World), 2010<br /> SEGMENT 2011 STAR RATING<br />NOTE: Star rating for segments is to represent the potential markets within the medical device industry in 2011<br />Source: Frost & Sullivan<br />
  5. Historical Revenue of Medical Device Market<br />Medical Device Market: Total Revenue (World), 2007-2011<br />Technology innovations, demographics and hospital austerity measures will drive the global medical device market above USD 300 billion in 2011<br />Revenue ($ Billion)<br />Source: Frost & Sullivan<br />
  6. Cross-regional Comparison of Economic Recovery<br />After a brief lull, the Medical Device Industry has quickly rebounded <br />2008 2009 2010<br />Fading Recession<br />Slow Economic Activity<br />Rise in Unemployment<br />Decrease in consumer Spending<br />“Signs of Growth”<br />Medical Device Market: Cross-regional Revenue Comparison (World), 2007-2011<br />Revenue ($ Billion)<br />Source: Frost & Sullivan<br />
  7. Challenges ahead for Europe<br />Rising unemployment<br />Challenges<br /> Ageing population <br /> Austerity measures <br />Medical Device Market: Key Challenges (Europe), 2011-2015<br />Source: Frost & Sullivan<br />Rising unemployment, an ageing population and strict austerity measures could impede long term growth prospects in Europe.<br />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.<br />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. <br />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. <br />
  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<br />
  9. European Macroeconomic Forecast<br />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. <br />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.<br />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.<br />General Market: Macroeconomic Forecast (Europe), 2000-2014<br />Source: Oxford Economics<br />
  10. Is the Recovery Sustainable?<br />General Market: Real GDP Growth (Western Europe), 2005-2010<br />GDP Growth Rate (%)<br />Year<br />Source: Frost & Sullivan<br />Recovery Factors<br />Restraining Factors<br /><ul><li>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</li></li></ul><li>Historical Pattern of Healthcare R&D Investment<br />India and China are the hottest R&D destinations <br />New frontiers in Medical technology and Pharmaceutical industries are investing in the East aggressively<br />Medical Device Market: Historical Pattern of Healthcare R&D Investment (World), 2005-2010<br />R&D Investment is Rising in the East<br />Low Average High<br />Source: Frost & Sullivan<br />Year<br />
  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<br />
  19. 2010 Medical Device Market Revenue <br />Medical Device Market: Total Revenue (World), 2010<br />Source: Frost & Sullivan<br />
  20. Segment Revenue Analysis<br />Medical Device Market: Total Segment Revenue (World), 2008 to 2011<br />Source: Frost & Sullivan<br />
  21. Cosmetic Surgery and Lifestyle Products<br />Rhynoplasty<br />Chemical Peeling<br />Microdermal Abrasion<br />Skin Resurfacing <br />Aesthetic Hair Removal Laser Treatments<br />Dermal Fillers (Collagen based)<br />Breast Enhancement<br />Liposuction and Body contouring<br />Botox Therapy & Others<br />Cosmetic Surgery and Lifestyle Product Market: Revenue (World), 2008-2011<br />Cosmetic Surgery and Lifestyle Products<br />Revenue ($ Billion)<br />Source: Frost & Sullivan<br />
  22. Neurology and Neuromuscular Devices<br />Neurosurgical Products<br />Hydrocephalus Shunting Devices<br />Neuroendoscopes<br />Neurostimulation Devices <br />Spinal Cord Stimulators <br />Vagus Nerve Stimulators<br />Interventional Neuroradiology Devices<br />Aneurysm Clips and Stereotactic Systems<br />Neurosurgical Therapeutic Products<br />CyberKnife Radiosurgery and<br />Others<br />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.<br />Neurology and Neuromuscular Device Market: Revenue (World), 2008-2011<br />Revenue ($ Billion)<br />Neurology & Neuromuscular Devices<br />Source: Frost & Sullivan<br />
  23. Ophthalmic and Optical Devices<br />Ophthalmic Surgical Devices<br />Electro Optical Devices<br />Implantable Micro-Optic Devices <br />Intra Ocular Lens <br />Phacoemulsification Equipment<br />Ophthalmic Viscoelastic Devices (OVD)<br />Ophthalmic Lasers<br />Refractive Surgery Devices<br />(Microkeratomes)<br />Ophthalmoscopes<br />Optical Coherence Tomographyand Others <br />Ophthalmic and Optical Device Market: Revenue (World), 2008-2011<br />Revenue ($ Billion)<br />Ophthalmic and Optical Devices<br />Source: Frost & Sullivan<br />
  24. Minimally Invasive Surgical Devices<br />Minimally Invasive Surgical Devices find application across all segments in Medical Device Industry: <br />Endoscopic Devices<br />Electrosurgical Devices<br />Monitoring and Visualization Devices<br />Angiographic Devices with Installed Base<br />Ablation Devices<br />(Radiofrequency, Ultrasound etc)<br />Cryosurgical Units <br />Imaging Technology <br />Medical Robotics<br />Biopsy Devices<br />and Others <br />Minimally Invasive Surgical Device Market: Revenue (World), 2008-2011<br />Revenue ($ Billion)<br />Minimally Invasive Surgical Devices<br />Source: Frost & Sullivan<br />
  25. Anesthetic and Respiratory Devices<br />Anaesthesia Machine/Workstations<br />Patient Monitoring Systems<br />Ventilators and <br />Others <br />Anesthetic and Respiratory Device Market: Revenue (World), 2008-2011<br />Anaesthetic and Respiratory Devices<br />Revenue ($ Billion)<br />Source: Frost & Sullivan<br />
  26. Cardiology and Thoracic Surgery<br />Cardiac Rhythm Management Devices<br />Interventional Cardiology Devices <br />Cardiac Ablation Devices<br />Cardiac Monitoring Devices<br />Interventional Pulmonary Devices<br />Thoracic Endoprosthetic Devices<br />Pulmonary Function Test Monitors<br />Pulmonary Diagnostic Devices and <br />Others <br />Cardiology and Thoracic Surgery Device Market: Revenue (World), 2008-2011<br />Cardiology and Thoracic Devices<br />Revenue ($ Billion)<br />Source: Frost & Sullivan<br />
  27. 2010 Medical Device Market Regional Analysis<br />Medical Device Market: Percent Split of Revenues by Geographical Region (World), 2010<br />Source: Frost & Sullivan<br />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.<br />
  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<br />
  29. 2010 Global Competition in Medical Device Market<br />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.<br />Large Device Manufacturers’ Dominate Global Market<br />Medical Device Market: Industry Competition (World), 2010<br /> “Segmentation is the key to success<br /> in this environment”<br />Revenues ($ Billion)<br />Source: Frost & Sullivan<br />
  30. Global Market Share of Top Ten Industry Competitors <br />Medical Device Market: Top Ten Industry Competitors Global Market Share (World), 2004 and 2010<br />Fragmentation Provides Acquisition Opportunities<br />Source: Frost & Sullivan<br />
  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<br />
  32. Acquisitions Boost Business<br />Transaction ($ Billion)<br />Number of Deals<br />2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />Year<br />Medical Device Market: Mergers and Acquisitions (World), 2001-2010<br />Source: Frost & Sullivan<br />
  33. 2010 Major Acquisitions<br />Medical Device Market: Major Acquisitions (World), 2010<br />Revenue ($ Million)<br />Acquirer - Target Company<br />Source: Frost & Sullivan<br />
  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<br />
  35. The UK corporate tax rate will be 26.0% from April 2011<br />Corporate Tax (%)<br />NOTE: Tax rate refers to the basic combined central and sub-central corporate income tax rate<br />Medical Device Market: Corporate Tax (G7 Economies), 2010<br />Source: OECD/ Frost & Sullivan<br />2010 Corporate Income Tax Rate<br />
  36. Healthcare Regulation Flow Chart<br />Increasing Healthcare Expenditure<br />Austerity Measures<br />Government Health Reforms<br />Encourage investment and exports as a route to a more balanced economy <br />Increase in General Tax<br />Promote competitive tax system Business rate relief for small firms<br />Economy remains under pressure<br />Consumer spending pattern remains low<br />Inflation Rises<br />“Manufacturer-Friendly” Governments on the Rise<br />Threat for a “double-dip” recession<br />Annual real term growth witnessed<br />Medical Device Market: Healthcare Regulation Flowchart (World), 2010<br />Government provides right environment for businesses to succeed by removing barriers that are preventing investors from performing to their complete potential<br />End-User Perspective<br />Manufacturer Perspective<br />Source: Frost & Sullivan<br />
  37. Key Take-away Messages<br />Medical Device Market: Key Take-away Messages (World), 2010<br />Medical Device Market is lucrative and sustainable<br />1<br />2<br />3<br />4<br />5<br />8<br />7<br />6<br />Competition intensifies as private label share grows<br />Global branding is a key strategy <br />Medical Device Industry<br />Global presence becomes more important in today’s competition<br />Mergers and acquisitions boosts businesses<br />Small to medium-sized acquisitions focus on geographic expansion<br />Product innovation drives organic growth<br />Manufacturer-friendly Governments are on the rise <br />
  38. Next Steps<br /><ul><li>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)</li></li></ul><li>Your Feedback is Important to Us<br />What would you like to see from Frost & Sullivan?<br />Growth Forecasts?<br />Competitive Structure?<br />Emerging Trends?<br />Strategic Recommendations?<br />Other?<br />Please inform us by rating this presentation<br />Frost & Sullivan’s Growth Consulting can assist with your growth strategies<br />
  41. Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter<br />http://www.facebook.com/FrostandSullivan<br />http://www.linkedin.com/companies/4506<br />http://www.slideshare.net/FrostandSullivan<br />http://twitter.com/frost_sullivan<br />
  42. For Additional Information<br />Katja Feick<br />Corporate Communications<br />Healthcare<br />0049 (0) 69 7703343<br />katja.feick@fost.com<br />Noel Anderson<br />European Vice President<br />New Business Development<br />+44 (0)207 343 8389<br />noel.anderson@frost.com<br />Siddharth Saha<br />Director of Research<br />Healthcare<br />+ 44 (0) 207 343 8374<br />siddharth.saha@frost.com<br />

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