What is MedTech? 7 Things you should know about the Medical Technology sector
What does MedTech mean? And what is it, exactly?
The WHO's definition of health technology provides much sought after answers to that question. Health technology is a set of organised knowledge and skills applied to solve a health problem and improve quality of life. Medical Technologies often refer to:
MedTech companies focus on improving people’s lives with their products. This does not just refer to the enormous and precious machines that you see in hospitals. You can find MedTech products every day in the form of: popular smart wearables and apps that help you stay fit or monitor your health, and in many other places!
What are the most well-known MedTech companies?
According to data from the end of 2020, Medtronic was the highest earner within the industry, with a revenue of $29.4 BLN; although the second-highest earner, Johnson & Johnson ($23 BLN), is still a more recognisable name.
Other companies that make MedTech's top ten are technologically based (Phillips, GE Healthcare and Siemens) and health-oriented (Fresenius, Roche, Cardinal Health).
What are their products?
These companies provide advanced life-saving technologies. For instance, Medtronic produces the tiniest pacemakers (93% smaller than normal ones) for people with bradyarrhythmia.
J&J gained attention last year with a single-dose Covid-19 vaccine, although they have recently started to focus on medical robots. Philips and GE are also working on similar technologies, along with machine learning-based software.
How can Medical Technologies help us on a day-to-day basis?
MedTech products can be spotted around us every day, even if you are not a doctor working in a hospital! Smart wearables are gaining popularity and are commonly used on a daily basis. Soon, these devices may even start to play a crucial role in diabetes management.
New medical technologies make every process concerning our health go faster and more smoothly: from finding the right specialist to starting treatments as soon as possible. With the assistance of some award-winning apps, it is even possible to improve processes such as sleeping or maintaining a balanced diet.
Is the MedTech market growing?
It is a well-known fact that the MedTech market has been growing consistently. Global medical technology revenue was relatively stable between 2011 ($353 bln) and 2016 ($387 bln). However, after 2016, it skyrocketed and has been projected to reach approximately $600 bln by 2024!
Who are the main clients of MedTech companies?
As you may have already guessed, basically everyone is a potential MedTech user. Therefore, these companies can focus on delivering solutions for hospitals or other large organisations, as well as individual consumers who may find this technology functional and efficient.
This means that companies that are developing innovative medical technologies can operate in both B2B and B2C markets, depending on their product. To give you an example: smart bands are used every day by people who want to stay healthy while similar, though more sophisticated, devices are designed for specific consumers, e.g., those with heart disorders.
What is the future of MedTech?
Recently, we published a comprehensive article about the trends and future of MedTech (link). We will avoid repeating ourselves here, although this point may be emphasized: the MedTech sector is a fantastic sector to observe, as innovation in this space leads to saving lives globally.