Report: Evaluate forecasts $477.5 billion for medtech by 2020

Life science market intelligence group Evaluate Ltd. said the total value of the global medtech market could reach $477.5 billion by 2020, according to a report released this week .

The group expects growth to see an annual rate of 4.1% ove the next 5 years, and that medtech R&D spending will grow by 3.5% to reach an annual $29.5 billion.

“A huge wave of consolidation crashed over the medtech industry in 2014 and early 2015. While megamergers are still occurring, with luck, the immediate future will bring a steady stream of smaller tuck-in M&A deals too. In combination with an increase in FDA approvals for innovative devices, these trends should reward the companies developing the best and most useful technologies,” EP Vantage medtech reporter Elizabeth Cairns said in prepared remarks.

Evaluate said the in vitro diagnostics would be the big fish of the device market in 2020 with sales of $67.3 billion, indicating a 14.1% share of the device market, and nearly topping in growth with a calculated 5.1% growth rate between 2014 and 2020.

Neurology will take the top spot as the fastest growing subsection with sales expanding at 6.9% annually and hitting $9.5 billion by 2020, the group said.

M&A will still be in the spot light, Evaluate said, with average deal values rising 166% to $84 billion in the 1st half of 2015.

The FDA increased the amount of PMA’s approved this year through august 50%, according to the group, compared to the same period in 2014.

Venture financing dipped 14% for the first half of 2015, and the deal count decreased 13%, according to Evaluate. Initial public offerings cooled as well in 2015, but Evaluate said IPOs were still on an upward trend from 2013.

The data is being presented and distributed at AdvaMed’s conference in San Diego, Calif. this week, Evaluate said.

The post Report: Evaluate forecasts $477.5 billion for medtech by 2020 appeared first on MassDevice.

from MassDevice http://ift.tt/1OU2oDy