Road to Recovery in MedTech

Looking back at the events of 2020 and how they will continue to affect the MedTech Market

Thanks to strong demand for devices that support diagnosis and treatment of COVID-19, along with a modest improvement in sales across several other product lines late in the year, the med tech industry managed to grow 3.3% YoY during 2020. During the highly uncertain summer months of last year, we had estimated a potential loss of $30 billion compared to our pre-pandemic forecasts, actual results have proven more positive at only half that amount when compared with the prior forecasts. This analysis includes consumer wellness, with that segment removed the gain was 2.9%.

During the year sales declined for equipment associated with procedures that were deferred because the pandemic presented more urgent concerns and restricted patient movement. Specifically, this was equipment targeted for use in cardiology, orthopedics, ophthalmology, imaging, and non-COVID diagnostics in general. Also negatively affected were numerous surgical products relating to cardiology, and orthopedics. A decline in sales occurred likewise in restorative therapies related to the brain, spine, and pain management. Meanwhile, offsetting these declines was growth in equipment used for respiratory therapy, patient monitoring, and other technologies enabling connected care. More specifically, demand was elevated for ventilators, monitors, X-ray equipment, anesthesia equipment, point-of-care ultrasound, and infusion pumps.

The ups and downs of the med tech market

The following analysis comes from each report in Vamstar’s market research portfolio, grouped by segments that were up for the year compared to those that were down.

Up 12.4% in 2020 YoY (cumulative)

•       Anesthesia, Respiratory Therapy
•       Clinical Laboratory
•       Consumer Wellness*
•       Diabetes Care
•       Durable Medical Equipment
•       Incontinence, Ostomy, Urology
•       Infusion, Renal Therapy
•       Patient Monitoring
•       Personal Protective Equipment
•       Wound Care

Down 4.6% in 2020 YoY (cumulative)

•       Cardiac Rhythm Management
•       Healthcare Informatics
•       Hearing Care
•       Medical Imaging
•       Medical Laser, Aesthetics
•       Neuromodulation
•       Oral Care
•       Radiation Therapy
•       Surgery
•       Vision Care

*Vamstar’s Consumer Medical and Wellness study includes analysis for telehealth, corporate wellness, and PERS alarm services. However, revenue from these services was not included as part of this insight.

Market share moves at the top

In terms of market share, Thermo Fisher rose from number three in 2019 to the top spot in 2020 with a 26% increase in revenue, passing $32.2 billion with $6.6 billion of that related to the COVID-19 response. Medtronic fell to second place with $28.9 billion, J&J came in third followed by Abbott and GE Healthcare—Abbott’s revenue increased 13%. Danaher’s Life Science and Diagnostics divisions jumped into the top ten with more than 30% revenue increase thanks in part to the inclusion of Cytiva, formerly known as BioPharma, which was acquired from GE Healthcare at end of the first quarter of 2020. Medline Industries also entered the top ten with a 26% increase in revenue, followed by BD, Siemens Healthineers, and Philips Healthcare. Philips’ connected care business, including patient monitoring and respiratory, helped the healthcare segment grow by 6%. Now that Siemens has closed their deal for Varian Medical Systems, it is likely they will move into the top five during 2021.

Vamstar’s medical technology report taxonomy includes 20 titles that cover the full range of medical device end equipment, accessories, and consumables. The analysis includes detailed quarterly market share updates across all segments for companies representing 75% of the total market. Our upcoming insights will provide an outlook for the remainder of 2021 as well as forecasts through 2022. Vamstar’s healthcare market research portfolio provides a unique perspective on the healthcare ecosystem by incorporating traditional business analysis with the latest data collection techniques and Vamstar’s novel, AI-based, procurement insight. Vamstar’s AI scans millions of sources every day to enrich buyer and supplier data, match buyer needs with supplier portfolio, and analyze markets and competition to identify opportunities for clients. Vamstar’s medical device analysis pairs this with market estimates built using a bottom-up approach, utilizing data obtained from manufacturers, distributors, and other sources. These estimates are then compared with estimates using top-down analyses to identify and rationalize any variances. The forecast modeling is based on expectations from vendors, the knowledge and expertise of Vamstar’s analysts, and the unique procurement insight obtained from the company’s novel AI platform.

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