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Medical equipment industry

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Ashish Sharma
Ashish Sharma

The document analyzes the medical devices industry globally and in India. It finds that the global market is led by companies like Johnson & Johnson, GE, and Siemens, with North America having the largest share. In India, the medical devices market is the fastest growing and expected to reach Rs. 12,000 crore in size annually growing 15% due to factors like rising incomes and healthcare spending. However, the industry faces challenges like low R&D investment and an unsteady regulatory environment. The conclusion is that the sector has strong growth potential in India if these issues can be addressed.

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INDUSTRY ANALYSIS OF MEDICAL DEVICES Submitted by: Pallavi Rathore (12609028) Ashish Sharma (12609117)
Medical Devices Industry Covers a wide spectrum of products used in the treatment of patients, including cardiovascular devices, dental equipment, diagnostic devices, medical equipment and supplies, ophthalmic devices, orthopedic devices, respiratory devices and surgical equipment. The medical device sector was not untouched by the economic crisis. Technological advancement plays an important role. Challenges: include taxes on products in overseas markets as well as incongruous foreign regulatory controls and varying implementation of standards.
MAJOR PLAYERS Johnson & Johnson General Electric Co. Siemens AG Medtronic Inc.
North America 44% Europe 32% Asia Pacific 18% Rest of World 6% GLOBAL MARKET SHARE
INDIA FACTS AND FIGURES REGARDING THE MEDICAL DEVICE MARKET The fastest growing Medical Devices market - Rs. 12,000 cr. Growth Rate - 15% annually for next 5-6 years Equipment: 50-55% [ophthalmic, dental, imaging and other medical equipment] Medical disposables: 25-30% Implants: 20-25%
SWOT ANALYSIS Strengths Potentially Huge market with growing urban middle class population Growing private hospital sector aiming to attract health tourists Success in Pharma and other paramedical areas Weaknesses Low per capita expenditure Developing government policies and infrastructure Untapped rural markets Excessive dependency on imports Academic knowhow is not well developed in this sector Support system from R & D not available
Opportunities Overseas companies investing in India to set up R & D units Increasing Joint ventures and agreements Overseas aid assisted projects to improve healthcare infrastructure Regulations to improve market for domestic manufacturers. Threats Regulation policies may slow down the development of the market Unorganized market for medical disposables Lack of regulations, specifications - leading to spurious products.
Medical equipment industry
Key issues in the industry and possible solutions Unstable regulatory environment Lack of funding in R&D Insufficient skill sets Lack of domestic participation Conclusion The medical technology segment has tremendous potential. This potential is being recognized by the government and there have been many initiatives to promote the sector. In the Union Budget 2012-2013, customs duty has been reduced from 16 percent to 8 percent for medical and veterinary furniture. The sector is expected to grow at 13.4 % by 2015.
GROWTH DRIVERS Booming economy Increasing healthcare expenditure Changing demographic profile Increasing incidence of life style diseases Ophthalmology Cancer Cardiovascular diseases Hypertension, diabetes and renal diseases Neurological and psychiatric disorders and addictions Increasing number of medical tourists Proliferation of hospitals Government programs and support User friendly and handy devices
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Medical equipment industry

  • 1. INDUSTRY ANALYSIS OF MEDICAL DEVICES Submitted by: Pallavi Rathore (12609028) Ashish Sharma (12609117)
  • 2. Medical Devices Industry Covers a wide spectrum of products used in the treatment of patients, including cardiovascular devices, dental equipment, diagnostic devices, medical equipment and supplies, ophthalmic devices, orthopedic devices, respiratory devices and surgical equipment. The medical device sector was not untouched by the economic crisis. Technological advancement plays an important role. Challenges: include taxes on products in overseas markets as well as incongruous foreign regulatory controls and varying implementation of standards.
  • 3. MAJOR PLAYERS Johnson & Johnson General Electric Co. Siemens AG Medtronic Inc.
  • 4. North America 44% Europe 32% Asia Pacific 18% Rest of World 6% GLOBAL MARKET SHARE
  • 5. INDIA FACTS AND FIGURES REGARDING THE MEDICAL DEVICE MARKET The fastest growing Medical Devices market - Rs. 12,000 cr. Growth Rate - 15% annually for next 5-6 years Equipment: 50-55% [ophthalmic, dental, imaging and other medical equipment] Medical disposables: 25-30% Implants: 20-25%
  • 6. SWOT ANALYSIS Strengths Potentially Huge market with growing urban middle class population Growing private hospital sector aiming to attract health tourists Success in Pharma and other paramedical areas Weaknesses Low per capita expenditure Developing government policies and infrastructure Untapped rural markets Excessive dependency on imports Academic knowhow is not well developed in this sector Support system from R & D not available
  • 7. Opportunities Overseas companies investing in India to set up R & D units Increasing Joint ventures and agreements Overseas aid assisted projects to improve healthcare infrastructure Regulations to improve market for domestic manufacturers. Threats Regulation policies may slow down the development of the market Unorganized market for medical disposables Lack of regulations, specifications - leading to spurious products.
  • 9. Key issues in the industry and possible solutions Unstable regulatory environment Lack of funding in R&D Insufficient skill sets Lack of domestic participation Conclusion The medical technology segment has tremendous potential. This potential is being recognized by the government and there have been many initiatives to promote the sector. In the Union Budget 2012-2013, customs duty has been reduced from 16 percent to 8 percent for medical and veterinary furniture. The sector is expected to grow at 13.4 % by 2015.
  • 10. GROWTH DRIVERS Booming economy Increasing healthcare expenditure Changing demographic profile Increasing incidence of life style diseases Ophthalmology Cancer Cardiovascular diseases Hypertension, diabetes and renal diseases Neurological and psychiatric disorders and addictions Increasing number of medical tourists Proliferation of hospitals Government programs and support User friendly and handy devices