Exclusive extracts from this 70-page-long report:
- Who are the key players?
The industry is dominated by a handful of large, deep-pocketed companies which compete against a myriad of small-scale, specialised players. Medtech leaders come from diverse backgrounds. Pure players are mainly positioned in markets that require highly specialised medical expertise (wound care, diabetes, cardiovascular, etc.). They compete with the likes of Roche and Abbott, which also operate in the pharmaceutical market, as well as diversified groups (Siemens and GE), which are particularly strong in imaging systems and IT services.
Groups analysed in this report include: Medtronic, Johnson & Johnson – Medical Devices, Koninklijke Philips (Royal Philips), GE Healthcare, Abbott Diagnostics, Cardiovascular & Neuromodulation, Siemens Healthineers, Becton, Dickinson & Co, Stryker Corporation, Roche Diagnostics and Olympus Medical.
- What are the players' strategies?
Broad in scope, the medical device industry is subject to constant technological and scientific progress. The industry is being reshaped by data analytics and artificial intelligence, which are the source of new value-added, end-to-end offerings. The number of new devices marketed has been on the rise, as has the complexity of the approval process, which has become lengthier and costlier. These factors, along with customer pressure to reduce healthcare costs, has enhanced consolidation: niche players are being acquired by large companies, while a few large players have coalesced their operations.
- What are the players' key growth and profitability drivers?
The aggregate revenues of the top 10 medtech firms analysed in this report have risen at a yearly pace of 7.6% over the past five years. This was overwhelmingly driven by inorganic activity. Excluding M&A activity, revenue growth would have been lacklustre. Nonetheless, companies such as Stryker and Medtronic are among the companies that have also reported positive organic revenue performance.