Follow Fortune Business Insightsmeans a number companies are set to make substantial profits.
The consulting firm projects a CAGR for the industry of 5.5% between 2022 and 2029.
There are several reasons for the increase. The first is the increase in the prevalence of chronic diseases around the world. Citing data from the International Diabetes Organization, there are 537 million people with diabetes in 2021. That number is expected to increase to 643 million by 2030 and 783 million by 2045.
Fortune Business Insights notes that increased spending on healthcare in developed and emerging countries, as well as improved reimbursement policies, are also driving growth.
The company also notes that due to the shift in older people’s preference for home healthcare services, there has been a growth in portable and wearable devices for the treatment of chronic conditions. .
The US accounts for 40% of the global medical device market, according to AdvaMed, a trade association. Fortune Business Insights found that the largest device segment in the US is in vitro diagnostic (IVD), followed by cardiovascular and orthopedic equipment.
Fortune Business Insights notes that the IVD segment is expected to grow at a higher CAGR due to increased use of real-time diagnostic tests used in diabetes, cancer, and HIV diagnoses. / AIDS.
Based on these insights, there are a number of companies that benefit from the increase in demand for medical devices. These include the top three medical device companies based on 2021 revenue: Medtronic (NYSE:MDT), Abbott (NYSE:ABT) and Johnson & Johnson (NYSE:JNJ).
Although Medtronic (MDT) operates several segments, it is perhaps best known for its cardiovascular portfolio. But the company’s products in the fields of medical surgery, neuroscience, and diabetes show the company is well-positioned to profit in a variety of device areas. Looking for Alpha Contributor Michael Dolen who sees Medtronic (MDT) as an act of buying, arguing that the firm can see strong growth in the next 5-15 years.
Abbott’s device portfolio focuses on diabetes care, cardiology (pacemakers, cardiac mapping), pain and mobility products (spinal cord stimulation, deep brain stimulation) and a wide range of diagnostic products. Its Freestyle Libre line of blood glucose meters is one of the most popular blood glucose meters in the US.
In its recent release 3rd quarter earnings in 2022revenue in the medical device segment fell 0.5% globally to ~$1.7 billion year-over-year.
Johnson & Johnson (JNJ) the DePuy Synthes division has an orthopedic division (joint reconstruction, spine, sports medicine and maxillofacial devices) and the Ethicon division provides surgical instruments and systems. Its interventional solutions business provides cardiac arrhythmia and neurological care tools.
Stryker (SYK) works in two main areas: neurosurgery/engineering and orthopedic/spine. Search for collaborators Alpha Report Wolf notes that these areas have total addressable market is ~$72 billion together. The company is also a bit involved in M&A when it acquires TMJ, Gauss and Thermedx in 2021.