Medical technology, as known simply as MedTech, is the application of technology to develop medical solutions. This can include vaccines, improved medical procedures and tools for diagnosing medical conditions. With outstanding periods in the early 1990s, mid-2000s, and late 2010s, the industry has outperformed the S&P index over the previous three decades by over 15 percentage points.
The MedTech industry is no stranger to growth, but the last few years have seen a huge increase in investment and revenues. The global pandemic certainly played its part, with companies focusing efforts on producing technology such as rapid testing, vaccines and improved hospital care. However, growth in a number of other areas, such as medical devices, has also become apparent.
Medical devices are any sort of device that can be used in healthcare. This includes low-tech devices such as a tongue depressor but can also include pacemakers and automatic medication dispensers. In recent years, the medical device sector has seen increasing growth as new technological innovations have been developed.
In a lot of cases, medical device success is dependent on the user experience. Patients and healthcare professionals need to feel comfortable using the device, and it needs to provide a good level of care. Modern healthcare looks to offer quality care while also saving time and costs as the healthcare industry faces increasing pressures.
At a CAGR of 5.5%, the global market for medical devices is expected to increase from $495.46 billion in 2022 to $718.92 billion in 2029. The integration of new innovations such as AI-powered devices and advanced user management will help drive this growth, and an increasing number of patients are now able to be more independent thanks to medical devices.
Innovations in the medical device industry may help change the way healthcare works. Instead of focusing on patients receiving care in hospitals, there’s now a growing trend to provide treatment at home. Medical devices can make this a lot easier while also meaning the quality of care provided is higher.
Moreover, proper care of these devices can ensure they have better workability for a longer duration. Not to forget, cleaning and sanitization are other aspects that help provide patients with better care at a hospital or home. The medical industry may invest to buy distilled water and other cleaning essentials for the proper upkeep of the medical devices and maintain hygiene.
Why Healthcare at Home is on the Rise
A bigger trend in the healthcare industry will see people switch from expensive hospital stays to at-home care. Healthcare provided in the home had rapidly increased even before the pandemic as a result of ageing populations and a rise in chronic diseases like diabetes and chronic obstructive pulmonary disease (COPD) that require long-term treatment.
According to McKinsey, by 2025, $265 billion in care that is currently delivered in hospitals and clinics in the US might be delivered at home, leading to a fourfold rise in the cost of at-home healthcare. With an emphasis on high-margin medical devices for home usage, major businesses in the healthcare industry are now vying to dominate the home healthcare market.
Telemedicine and telehealth offer a way for patients to connect with doctors and other healthcare professionals without needing to visit a facility. Using technology and an internet connection, patients can see a professional off-site and receive the support and care they need for their condition. This not only saves time for both the patient and the doctor, but it also saves costs and provides an equal level of care.
Combined with medical devices, telehealth can actually improve the level of care that patients receive. No longer do they need to travel long distances, and doctors can treat a higher number of patients in a short period of time. Data collected from wearable medical devices can provide healthcare professionals with a clearer picture of the patient’s health rather than taking a single snapshot when they visit a facility.Infographic created by RevPart – Plastic Injection Molding