Report: Medtech sales to hit $529B by 2022

Worldwide medical technology sales are expected to reach $529.8 billion by 2022 with an annual growth rate of 5.2% over the next 7 years, according to a new EvaluateMedTech report from Evaluate.

The report is based on “in-depth forecast models for the top 300 global medtech companies,” Evaluate said

The international medtech market will see growth just under that of the pharmaceutical industry, with a compound annual growth rate of 5.2%, just below the 6.1% expected in pharma.

Medtronic (NYSE:MDT) is expected to remain at the top of the pack, with sales forecast at $39.9 billion, according to the report. The Fridley, Minn.-based medtech giant will hold onto the top spot in the competitive cardiology market, with sales expected to reach $14.1 billion.

The company is expected to see its R&D spending grow by 4.3% annually, at $2.8 billion by 2022, according to the report.

In vitro diagnostics are slated to be the biggest market amongst device fields, with expected sales of $70.8 billion in 2022, representing more than 13% of the industry’s total sales. Roche (PINK:RHHBY), which currently tops the market, is expected to hold the sector with forecasted sales of $12.8 billion.

The fastest growing industry in medtech is expected to be neurology, which has a forecasted CAGR of 7.6% between 2015 and 2022.

While mergers and acquisitions fueled much of 2015, M&A activity in the 1st half of 2016 has slid 79% to $17 billion. Venture financing deals have also slowed down, drooping 39% to 138 in the 1st half of 2016, while the value of venture financing fell 6% to $2.4 billion. Initial public offerings in the medtech field also fell in the 1st half of 2016, down to $164 million.

The FDA has been performing on point, according to the report, with a 55% increase in the number of 1st-time premarket approval applications and humanitarian device exemptions, a 10-year high for the agency.

“Overall, the device industry is growing reasonably rapidly, and the calming of the M&A scene does not pose a problem for the expected growth. The sector is already seeing a resurgence of smaller acquisitions on which start-ups, a significant source of disruptive new technologies, depend,” EvaluateMedTech product manager Ian Strickland said in prepared remarks.

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