Like other industries, the medical device industry has been hit by the COVID-19 outbreak like never before: clinical trials, product launches, planned mergers and acquisitions, procurement, supply chain, manufacturing and other regulatory matters have all been affected. Sales of non-COVID-19 related services and products plummeted, with demand for non-acute sectors such as general surgery, ophthalmic and dental care devices declining, while demand for hospital supplies and in vitro diagnostic devices grew significantly.

The global medical devices market reached $610.8 billion in 2021 and is expected to grow at a compound annual growth rate of 5.9% to reach $766.7 billion by 2025. Some of the major factors driving the global market include rising chronic diseases, increasing aging, growing demand for minimally invasive treatments, and the emergence of advanced medical devices.

1) North American Market

The U.S. generated sales of USD 2016 billion in 2021 and is expected to grow at a CAGR of 4.5% to reach USD 240.1 billion in 2025, continuing to secure its position as the largest medical device market. This growth is driven by good patient statistics, rising prevalence of chronic diseases, surge in the use of digital therapies, and increased clinical data demonstrating the efficacy of innovative devices.

2) European Market

The European medical device market generated sales of $160.9 billion in 2021 and is expected to grow at a CAGR of 4.0% to reach $188.3 billion in 2025. As in the U.S., demand for medical devices in Europe will continue to be influenced by cost containment pressures, value-based care, technological advances and demographic changes. But the most notable impact will be regulatory changes.

3) Asia Pacific Market

The Asia Pacific medical device market, which generated $150.2 billion in sales in 2021, driven primarily by China, Japan and India, is expected to grow at a CAGR of 8.6% to reach $209.1 billion in 2025.

The medical device industry is poised to perform strongly in 2021 and has a strong outlook for the foreseeable future. Continued advances in technology, coupled with increased use of IoT devices to share information, are driving the transformation of healthcare delivery. Changes in treatment paradigms, patient behavior, and the evolution of the doctor-patient relationship are facilitating the creation of patient-friendly diagnostic and monitoring devices.