Despite austerity movements around the globe and the impending U.S. device
tax, the global market for medical devices will grow to $415 billion in 2016,
according to analysis from Kalorama Information.
Despite the threats of unfavorable policies for devicemakers, Kalorama
predicts growth on the strength of emerging market sales and aging populations
in need of devices. All of that will bring the market to $415 billion from
2011's $322 billion.
"2011 was a year of cost control," Kalorama Publisher Bruce
Carlson said in a statement, adding that the industry is learning to cope with
new policies and work outside its comfort zone. For instance, while the U.S.
remained the largest market for medical devices, American companies grossed
more in international sales than domestic ones, a trend that will likely only
continue as developing countries enter the market and worldwide health reforms
bring broader coverage.
Furthermore, devicemakers have increased their R&D spending, with top
companies boosting research funds by 8% on average in 2011, Kalorama reports.
"It's an indication of long-term optimism and a signal that the strategy
is to find new products and product innovations in order to get around the
lower reimbursements," Carlson said.