After significant disruption caused by the pandemic, 2022 is bringing many opportunities for the medtech industry to generate value and growth beyond historic industry norms. Medtech companies are willing to do business in new ways and develop holistic approaches to meet their customers’ needs and reap significant revenue rewards.
To accomplish this growth, medtech firms must go beyond the typical playbook of incremental product enhancements, limited M&A activity, and sales and marketing spending. They also must consider the quickly transforming healthcare environment and the transformative implications of the COVID-19 pandemic, such as supply chain disruptions, healthcare staffing shortages, altering care settings, and the rapid adoption of digital health technologies.
These changes are creating big opportunities. According to the Centers for Medicare and Medicaid Services, yearly, the U.S. healthcare spending on medical devices is predicted to reach $300 billion to $400 billion by 2030. However, medtech companies that are able to predict and meet changing customer needs within an evolving ecosystem will be well-positioned to capture not only their expected share of traditional revenue growth, but also new opportunities that provide access to the remaining $6 trillion in projected total annual U.S. healthcare expenditures by 2030.
Today, medtech companies’ revenue growth is primarily driven by incremental product improvements. Only about 1 percent of devices cleared for the U.S. market in 2021 were novel and required premarket approval; the rest were cleared via the 510(k) pathway. Medtech companies must sustain their core business, but those seeking to capture growth beyond their traditional market share must navigate disruptive market trends and partner with customers to help meet their larger needs and future goals. With vision, the industry can increase the number of truly new products and solutions that improve outcomes and lead to customers’ overall success.
In this edition, we aim to provide readers with insights into the current MedTech arena and the recent developments in this field.
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