Santa Clara, Calif., May 13, 2021 /PRNewswire/ -- Frost & Sullivan's recent analysis finds that medical technology (MedTech) firms are experiencing a rapid transformation as hospitals gradually move from high-acuity and high-dependency care to decentralized and patient-centric care models. The global MedTech market, comprising traditional MedTech and new value-added business models, is expected to reach $529.23 billion by 2024. Traditional MedTech offerings, characterized by hardware or device-focused products to treat a specific condition, still account for the larger portion of the market and will register growth at 2% by 2024. New value-added models, based on solutions such as insight-as-as-service and managing the disease condition through remote patient monitoring, connected care, and shared-risk contracts, will generate revenues of $171.65 billion by the end of the forecasted period and expand at a compound annual growth rate (CAGR) of 14.3%.
"MedTech companies' business models no longer aim to sell products with superior features addressing clinicians' needs. These models focus on saving the cost of care for payers, improving outcomes for patients, and enabling operational or workflow efficiencies for providers," said Srinath Venkatasubramanian, Healthcare & Life Sciences Industry Analyst at Frost & Sullivan. "Additionally, the evolution of regulatory framework and processes for breakthrough devices and digital capabilities such as artificial intelligence-based solutions have boosted the innovation capability and improved market access for medical device companies."
Venkatasubramanian added: "The influx of disruptive startups and pure technology firms into the care provision landscape has increased the competitive intensity in the sector. As a result, large MedTech companies are exploring options to build adjacent assets in the digital space through mergers and acquisitions (M&As) to sustain revenue growth. The rising competition has led to the emergence of platform solutions beyond hardware with value-added services to differentiate from low-cost peers."
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MedTech companies should consider the following strategic recommendations to leverage growth opportunities:
Omnichannel Sales and Innovative Clinical Engagement: MedTech companies should boost digital channels of engagement and collaborate with customers to co-create real-world evidence and build data-oriented outcome metrics that can enhance the value proposition of the solution, assisting in the sales and marketing process.