The medical sector is estimated at about € 200 billion in sales worldwide and is expected to grow at a compound annual rate of 6.4 percent over the next two to three years.
The world population is aging and the average yearly per capita spending for healthcare increases with age. According some studies, a man age 30-34 will spend an average of € 1500 for healthcare whereas a man age 50-54 will spend nearly three times as much. In 2020 for instance, there will be 55 million Americans aged 65 and over what a potential! In addition to these figures, older people are in general wealthier than younger people.
High precision machining
Orthopedics is the second segment behind cardiovascular in the medical device market and is projected to experience a compound annual growth rate of more than 10 % until 2011. In orthopedics, devices are used for the repair and replacement of skeletal problems and have to be produced. The main way to produce these parts is high precision machining!
Within the past few years, the orthopedic implants, historically a high margin category, experienced a drop in price per unit due to a slowdown in new products and entrance of new competitors thus asking for more productivity. A trend that sounds familiar to manufacturers of other fields.
That’s the secret in fact!
A lot of people are speaking about medical as if completely different than other fields… but a professional working in high precision turning or machining or even assembling already knows how to do well and only a few adjustments need to be done to be fully operational in the Medical device market.
In the next issue of Eurotec, I will emphasize how “easy” it is to benefit from the help of companies providing tooling, oil, production machines, cleaning machines, services to the medical industry.
There is still a double digit annual growth rate planned for the orthopedics devices for many years!
Need more information on the medical device market? The Swiss Business Hub USA publish a very interesting report on US medical market. http://www.swissbusinesshub.com/common/news/reports/detail.cfm?Classification=report&QID=3529&ClientID=11062&TopicID=0
For more general information: http://www.swiss-medtech.org/industry/markets/
In Switzerland you can go to the Swiss Medical Cluster there: http://www.medical-cluster.ch/index.php?langId=2