GlobalData predicts the medical device landscape in 2017

Research and consulting firm GlobalData has predicted 2017 to be a changeable and productive year for the medical device industry.

The predictions correlate with ageing populations, and their need for cost-effective treatments as well consistent innovation to drive growth.

The firm’s latest whitepaper states that the high-profile M&A scene will settle down, even though the industry favours large companies who can leverage economies of scale.

As medical companies start to reconsider their approach to dealing with execution and synergy capture the shift to strategic M&A activities at a tuck-in-level will continue.

The firm anticipate challenges in 2017 such as lack of funding for small or start-up companies, which are particularly vulnerable to the problem of diminished venture capital. Indeed, this lack of funding can adversely affect the broader industry by limiting growth and innovation.

More so, medical device manufacturers will no longer be able to depend on simply offering the best quality implant or most clinically successful instrumentation. Companies will need to re-evaluate their offerings and include a range of tools tailored towards physicians and hospital groups, such as applications and services that help physicians monitor patient outcomes, guide hospitals towards cost savings, and assist in improving clinical outcomes.

GlobaData also expects healthcare insurance companies to start tapping into new applications of the Internet of Things in 2017. The company state that insurance premiums will be determined by a patient’s lifestyle as recorded on smartwatches and wearable devices.

Furthermore, the climbing costs of healthcare services and shortages of healthcare facilities and labour will drive demand for cost-effective home care devices. This is indicative of the changing technological landscape of medical devices which sees advances in technology as well as higher user adoption of home care medical devices.