The Hospital: The device industry and medical technology in Europe
Special Report
The device industry and medical technology in Europe
is projected annual growth rate of 5.4% for 2014 Angela Andrea Castro
Social Communicator - Journalist, editor of The Hospital, February 2011
annual sales of medical technology sector in Europe are U.S. $ 99 billion. According to a report Eucomed, the medical device sector in Europe is the second largest in the world and brings over 11 thousand companies, of which 80% are SMEs. Find here a description of the market in Austria, Belgium, France, Germany, Spain, United Kingdom and Switzerland, and the behavior of the major manufacturers located in this region. (The figures in this report are expressed in U.S. dollars, as a global monetary unit).
In March 2000 the European Council adopted the Lisbon strategy for a period of ten years, which sought to emphasize the importance of research, development and innovation in the European Union. Five years later this strategy was renewed, with the initiative 'Working together for growth and employment', which placed science, technology and innovation at the heart of regional and national policies of the European Union. After the plan
Lisbon and the recent economic crisis had to be a new growth plan for the region. It was so born in 2010 "Europe 2020: a strategy for sustainable development, smart and inclusive ', which aims to make Europe is strengthened by the worst economic crisis since the 30's. Under this plan, improve competitiveness is one of the main objectives, especially in sectors that have recorded sustained growth. These will include the medical device that not only is one of the most innovative but also has the advantage of having an average lifespan of only 18 months before submitting a product enhancement available, resulting in a more dynamic and growth for the industry.
Global demand for medical devices is explained, according to the International Trade Administration United States, increasing expenses and a greater focus on health in developing markets, building hospitals and clinics and the establishment of an insurance public health. Added to this, global demand will keep growing due to aging of the population, the participation of new and emerging markets, and rising income levels in developing countries. In addition, global harmonization of standards and regulatory requirements will help to facilitate the strengthening of the sector.
According to the European Medical Technology (EUCOM), the industry spends nearly U.S. $ 7,912 million in research and development and employs some 520 000 highly skilled employees (one of every 500 employees in Europe working this sector). The industry reinvests a percentage of 8% volume of business innovation and represents more than 11% of all patent applications in Europe.
annual sales of medical technology sector in Europe is U.S. $ 99 billion, which equals 33% of global market share. The industry is growing at a rate of 5 to 6%. According to a report published by Eucomed, the medical device sector in Europe is the second largest in the world (behind USA) and brings together about 11 000 companies, of which 80% are classified as SMEs.
According to the report "The Outlook of Medical Devices in Western Europe 2010 "held by the intelligence services firm Espicom market, three of the five largest medical device markets in the world are located in Western Europe: Germany, France and the UK." Like all other sectors, the medical device market will be affected by global economic recession in the short term. This is a threat to domestic manufacturing industries, especially in Germany, which is based on export demand for their products, but beyond the current recession, are expected to Western European countries returned to a compound annual growth rate averaged 5.4% for 2014, " the report said.
behavior by countries
The medical devices market in France, Germany, Italy, Spain and the UK is estimated at U.S. $ 51 billion, and segment-leading sales are: cardiovascular, general surgery, diagnostic imaging, in vitro diagnostics, ophthalmology, orthopedics, neurology and urology. Eucomed
reports that Germany (U.S. $ 19 billion), Ireland (U.S. $ 9 billion), France (U.S. $ 8 billion) and the United Kingdom (U.S. $ 7 billion) are the largest exporters of medical technologies. Germany United Kingdom, Ireland, Sweden, Denmark and Finland have a trade surplus in medical technology, while all other countries have trade deficits.
According to the report "The Outlook of Medical Devices in Western Europe 2010", despite being a relatively small market, Austria is a high level of per capita spending on medical devices. In 2010 the market for this sector was valued at U.S. $ 2,114 million and is expected to reach U.S. $ 2,355 million in 2015. The country has a high per capita health expenditure (U.S. $ 4,900) and public money paid for almost three-quarters of total health expenditure. Several multinational companies have established offices in Austria, in order to take advantage of the country's proximity to the emerging markets of Central and Eastern Europe.
In Belgium, the market for medical equipment and supplies was valued at U.S. $ 1,350 million in 2010. According to the report Espicom, the growth of this country over the next five years will be slightly higher than its neighbors, France and the Netherlands.
"The provision of health services is highly qualified, although there is still over-reliance on hospital services, two thirds of which are provided by the private sector. Medical device production is comparatively low and imports represent a large percentage of the market. Belgium is located in the heart of the European Union and is used as a hub of many multinational companies re-exported to other parts of Europe, "the report said.
France is the fourth largest market for medical devices in the world, behind U.S., Japan and Germany. Recently, the country took steps to rein in spending on medical devices, similar to those already in force for pharmaceuticals. For this reason, it is expected that this market has a moderate growth in the future, and spend U.S. $ 8,400 million in 2010 to U.S. $ 9,800 million in 2015.
report of Espicom indicates that despite several high-profile programs on investment, France still lags behind its European neighbors in some high-tech fields, such as diagnostic imaging and radiation equipment, however, some government plans aim to streamline the sector. For example, there was a five-year initiative against cancer, which includes projects to increase the number of MRI scanners used in the diagnosis of several types of cancer, and raise the number of specialists in oncology, including radiotherapy technicians .
In 2010, the German market for medical devices was estimated at U.S. $ 17,500 million. The country has a history of tradition in producing high quality medical equipment, with special emphasis on diagnostic imaging, dental and optical products. It has a group of companies worldwide recognition, led by Siemens, B. Braun and Fresenius.
Over 11% of GDP spent on health, but resources are dwindling. Government funding in hospitals has remained static in recent years, therefore, these public institutions maintain their existing equipment instead of investing in new ones. This has led domestic producers to become increasingly dependent on exports.
Meanwhile, Ireland is a small but advanced medical equipment market. "The country has positioned itself as an attractive place for companies manufacturing equipment and supplies from the United States and elsewhere. Provides financial incentives for companies wishing to relocate, a workforce that speaks English and easy access to the European Union. As a result, the biggest U.S. companies in the sector have a manufacturing plant in this country. Only a very small proportion of this production is destined for the domestic market, "the document Espicom.
In Spain, this sector was valued at U.S. $ 4,400 million 2010. It is located at number five in the list of major medical technology markets in the 27 member states of the European Union. Over 80% of production is exported, so that imports account for most of the market. As a result, Spain has one of the world's largest trade deficits in the sector. Consumable products have the largest share, followed by orthopedic and implants, imaging equipment and dental products.
Major categories of export products including medical supplies, syringes, needles and catheters and radiology equipment.
The UK has one of the largest medical device markets in the world, valued at U.S. $ 8,400 million in 2010. Internally is the third largest in Europe, behind Germany and France. According to the predictions of Espicom, the sector will increase by 3.6% annually, reaching U.S. $ 10 billion in 2014.
According to a report by industry behavior, GlobalData made by the company, the growth of this sector is driven by increased demand for equipment for the care of cardiovascular, orthopedic and diabetes.
Finally, the sector of medical devices and supplies in Switzerland was estimated at U.S. $ 4,300 million in 2010 (figure comparable with China.) Local manufacture of medical products is very strong, especially in the field of orthopedics. The country is one of the leading exporters of this type of equipment.
Although Switzerland remains outside the European Union, the Government continues to align its regulations with those issued by it. Equipment such as CT scanners, diagnostic tests, medical implants such as pacemakers and artificial joints are free trade between Switzerland and the European Union.
European companies reported growth
the end In 2010 the German company Siemens Healthcare, which has about 49 000 employees and activities in 130 countries, generated total revenues of U.S. $ 17 billion, grew by 4% compared to 2009 and reported an increase in orders order of 8%.
Until September 30, 2010, the Healthcare sector was composed of three divisions: Imaging and technologies, Workflow & Solutions and Diagnostics. In 2010 it was decided to modify the structure, and from October this year was as follows: Imaging and therapeutic systems, clinical and diagnostic products. Therefore, every year the financial report was based on organizational structure in place until September 2010. Billing
obtained, 38% is in Europe, the Commonwealth of Independent States (CIS), Africa and Middle East, 42% are from America, and 20% of the Asia and Australia. Siemens Healthcare's investments in international markets in 2010 grew approximately 4%, after falling the previous year by 6%.
Siemens expects growth prospects for America 2.7% in 2011 and 3.3% in 2012. "In the health area we expect, due to the dynamics in emerging countries and a modest recovery in the U.S., an improvement prospects for the next two years. This is supported by strong growth in the BRIC states (Brazil, Russia, India and China). Therefore, the location of certain activities of our value chain, such as purchasing, production, maintenance or other services in markets like the BRIC states or the Middle East, we could make it possible to reduce our costs and strengthen global competitiveness, "says the report.
Dutch Philips Healthcare completed in 2010 with sales of U.S. $ 11 billion, 4% more than in 2009, driven by the areas of solutions for health care in the home and customer service. Equipment orders grew 9% and sales increased mainly in emerging countries, with 20%.
During 2007 and 2010 the company completed the acquisition of the following companies in the health sector in South America, to expand its presence in this market: VMI-Sistemas Medico (2007), Dixtal Biomedica e Technologia (2008), WHEB Sistems ( 2010) and Tecso Computer (2010).
In 2010, Philips spent 34% of its resources in the field of Healthcare. Within this sector, the company decided to diversify its portfolio beyond imaging systems and strengthen its business in health care in the home. In the medium term seeks to increase its presence in emerging markets, optimize their position in the area of \u200b\u200bdiagnostic imaging and invest for growth in systems, image-guided intervention, support clinical decisions and health care in the home.
For its part, in September 2010 the medical division of German company Dräger reported net sales of U.S. $ 1,400 million, an increase of 14% over the same period of 2009. According to a management company within the reasons for the increase in profitability are positive and continuous evolution of sales in the Americas and Asia, the favorable effects of currency and the high percentage of growth in equipment business, which has strong margins on net sales in the medical division. "Asia was stronger than ever and the Americas acted positively with some parts of Latin America, reporting a high demand," the report said.
As of September 2010 in the Americas (including Latin America) grew 45% in the number of orders registered in the system, within which stands a large ventilation equipment order in Brazil and growing demand from Colombia. Business areas with the highest growth were: anesthesia, monitoring, ventilation, systems and technology services.
Swedish company Getinge reported a decrease in orders received from -2.7% in 2010, however, orders for medical systems grew 1.9%, with an outstanding performance of the divisions of work areas for and cardiovascular surgery.
In medical systems, orders registered a rising trend in emerging markets in Asia and Australia. According to the company, "the trend away from Western Europe and North America was generally positive, with the exception of Latin America, which fell after a long period of growth, "said the report from the company.
"2010 was a year in which we could clearly demonstrate that the measures we are taking to increase our competitiveness are generating results, which is particularly reflected in an improved operating margin. In terms of demand, we are in a recovery phase, although the pace is slower than we would have liked, "the company said.
The Extended Care Division, received orders fell -0.4%. Customer demand in the field of elderly care in Western Europe remained weak, particularly in northern Europe and the United Kingdom. In the North American market demand improved, although the orders received during the period were lower than previous years. In emerging markets, which constitute a smaller percentage of transactions, the trend was generally favorable.
Future prospects According to the report 'Innovation in medical technology', by the specialized firm PwC, innovations in medical technology will go first to the market in Europe and, by 2020, probably will move to emerging before entering the United States.
"Europe also is seen as a good place for investment in medical technology, registering a growth of 60% from 2000 to 2009, compared with 40% in the U.S., "the paper said.
Within the medium-term trends highlights the report states that developers of innovations in medical technology are outside the United States in search of clinical data, registration of new products and first revenues. Therefore, the innovations come first to the European market.
"It is clear that if Europe wants to remain a leading innovator in the world, I make sure to promote a friendly environment for companies.'s Strategy for growth 2010 of the European Union is based on a smart, sustainable and inclusive and we believe that the medical technology industry plays a key role, "said John Wilkinson, CEO of Eucomed referring to this report.
References:
1. European Union. EuropeaEurostat regional yearbook 2010. [
http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-HA-10-001/EN/KS-HA-10-001-EN.PDF
] 2. International Trade Administration. Medical Devices Industry Assessment. June 2010. [
http://www.ita.doc.gov/td/health/Medical% 20Device% 20Industry% 20Assessment% 20Final% 20II% 203-24-10.pdf
] 3. Espicom. The Outlook of Medical Devices in Western Europe 2010. December 2010. [
The Outlook for Medical Devices
Western Europe] 4. Espicom. Medical Market Fact Book 2008.
5. International Trade Administration. Medical Devices in Europe. Market Review. MassMEDIC. Presentation by N. Gerard Zapiain. Oct. 2007.
6. Commission.Exploratory European Process on the Future of the Medical Devices. Jan. 2010 [
http://ec.europa.eu/consumers/sectors/medical-devices/files/exploratory_process/final_report_en.pdf
] 7. Eucomed. John Wilkinson. Medical technology in Europe. March 2009.
8. Eucomed 2009-2010. Report of activities.
9. Siemens Annual Report 2010.
10. Philips. January 2010 Annual Results 2011.
11. Dräger. Dräger Remains on path to success.
12. Getinge Group Q4 Report 2010.
13. European Union. Official Web page of statistics. [
Statistics by theme
] full text:
Hospital: Information for the development of health services in Latin America
