What is the Healthcare Market?
The healthcare industry, or medical industry, is an aggregation of sectors that provides goods and services to treat patients with curative, preventive, rehabilitative, and palliative care. The healthcare equipment and services sector consists of companies that provide medical equipment, medical supplies, and health care services, such as hospitals, home health care providers, and nursing homes. The technology oriented sectors include medical equipment and medical information systems (Medical IT).
How Big is the Healthcare Market?
Market research firm DeciBio reports that the medical devices market of $330B (2013) is growing at CAGR of 6% through 2017 to over $400B. The U.S. represents approximately 38% of the global market. DeciBio goes on to state that the market drivers behind this growth include the 3% growth of the aging population in developed countries, continued technological innovation focused on high unmet need markets, adoption of developed country medical device technologies in China, Asia-Pac and LATAM the continued broadening of regulatory requirements in the developed and developing worlds.
How is the Healthcare Market Segmented?
There are several approaches to segmenting the medical equipment market. One approach is by where used: surgical, cardiovascular, home healthcare, general medical and other devices. The industry is highly fragmented, and North America dominates with 46% of the global market. High competitive rivalry prevails with low to moderate barrier for entry into the industry.
Another approach is by medical specialty. Examples are: cardiovascular devices, orthopedics devices, diagnostic imaging devices, minimally invasive devices, diabetes devices, anesthesia and respiratory care devices, dental equipment, dialysis products, ophthalmology devices, patient monitoring devices and point-of-care diagnostic devices.