“The results of this year’s report is a direct contrast to last year and tells a positive story about the future of the medtech industry,” said EY partner Arda Ural.
According to EY’s “Pulse of the Industry” report, the global medical technology (medtech) industry grew by 5% in 2016, a pace last seen before the financial crisis. This strong performance was fueled by mergers and acquisitions (M&A) and portfolio optimization strategies, as well as continued focus on capital efficiency and research and development (R&D) investments.
Overall, revenue from U.S.- and Europe-based medtechs grew to $364.4 billion in 2016 after a 3% decline in the prior year. Meanwhile, net income for these companies rose 17% to $16 billion, compared with a 20% dip to $13.7 billion in 2015. Additionally, total R&D spending by pure-play medtech companies rose 5% to $16 billion in 2016.
Evaluate painted a similarly upbeat picture for the future in its “EvaluateMedTech World Preview 2017, Outlook to 2022” report. It predicted that the worldwide medtech market will reach $521.9 billion by 2022, growing at an annual rate of 5.1% s year between 2016 and 2022.