Medical devices & diagnostics

Introduction Medical diagnostics, pin-pointing growth HIT Trade Fair Trade fairs for senior care and handicap Opportunities in the French Health sector Hopital Expo - Inter Medica 2008 Overview of the German and French Medical Equipment Industry

Overview of the German and French Medical Equipment Industry

The value of the global medical equipment industry is estimated to have capped €184Bn in 2006. While the US is the world leader, Europe in second place, accounts for some €55.2Bn. Within Europe, Germany, France, the United Kingdom and Italy make up 72% of Europe’s medical equipment supply and demand. Eastern Europe is particularly poorly represented. The Asian economies, notably Japan and China are seeing the fastest growth, spurred by internal demand.

The sector is dominated by multinationals, large enough to support the hefty R&D costs that drive the industry. Competition is global with price stability only assured by ever-more sophisticated technology. World leaders include Boston Scientific, Beckman Coulter, Johnson & Johnson, Medtronic, Mindray, Spacelabs Healthcare, St.Jude Medical, Philips, GE Healthcare, Siemens AG, Fresenius AG, Dräger Medical AG.

Germany is third largest market for medical equipment in the world. Although Germany exports 78% of the medical equipment that it produces, it imports a similar value of equipment. In 2005 (last year for full figures), German demand for medical equipment was valued at US$10.7Bn. But internal demand growth is relatively low, averaging between 2.6% and 3.8%. At current rates, the market should be worth about US$12.4Bn in 2008 (www.espicom.com).

In 2007 the German government passed a new health care reform. Similar to other national health care reforms, the net effect is fiercer competition between the public-sector hospitals and private-sector doctors and clinics. This has added to pressure within the medical equipment industry to generate constantly innovative technology at ever more competitive prices.

France is the fourth largest medical equipment market in the world, with an estimated value in 2007 of US$7.52Bn. The annual growth rate of an estimated 5.3%, however, is double that of Germany’s. French imports of medical equipment exceeds exports, although certain products are re-exported, notably pacemakers. According to www.researchandmarkets.com, the estimated turnover of this sector will reach US$9.75Bn by 2012. 

As of 2007, the French government launched a series of important reforms and investment programmes in the healthcare sector. Some of the net effects should be increased investments for diagnosis and healthcare “efficiency” – two key drivers for medical equipment demand. We believe demand for imaging and radiotherapy equipment should be particularly strong.