The industry which profits because of health issues in man is health care and equipment manufacturing industry. The rise in health issues subsequently increase the equipment manufacturing industry and also many new sophisticated equipments are invented by medical field. It is one of the billion dollar industry that grows in double digit and estimated to reach $50.37 billion by 2020 which was $23.56 billion in 2013 with the CAGR of 11.5%. Manufacturing of smaller equipments is the driving force of sales since many huge sophisticated equipments are needed only during few occasions. The demand for more new devices will hold the medical equipment industry in the global race. It is a fragmented industry with high competitive rivals battling for global race which is highly dominated by North America with a global share of 46%. Though it is a fragmented industry it’s economic and employment contribution is significant for the welfare of world countries. It is directly offering more than 400,000 jobs and about 3 million indirect jobs.
Demand factors of medical equipment
Another reason for its predicted development is the demand is from globally populated countries China and India which helps the industries to grow for another six years, according to the report of Lucintel, a global management consultancy and market research firm. The industries which manufacturing equipments for cardiovascular disease treatment is highly successive as the number of global cardiovascular disease patients are growing at multi-fold. Apart from those devices, Surgical and infection control and general medical devices are attractive segments. It is expected that increase in hospitals, clinics and other infrastructure development in medical industry will boost the demand for medical devices in coming years but also, there are many challenges that global medical equipment industries have to face in those years.
Global challenges for medical equipment industry
The challenges are come along with the demand, due to many small players the global competition has increased which is further deteriorated by lack of qualified manpower related to medical devices. Technological advancements such as nanotechnology applications and surgical robots are good for medical industry, however, its implementation will reduce the demand and revenue for manual simple equipment industries. According to ecigsopedia, online websites which sell vape cigarettes, the rise of virtual stores pushing the physical stores out of the competition. The major burden for every manufacturing industry is the regulation which is tighteningin every aspect from safety, cost to raw materials. Many of those regulations are good for consumers however it affects the growth of manufacturing industry.Recently medical industries are facing many new regulations including Universal Device Identification (UDI) and pedigree requirements where many countries are already implemented on their industries. Another mighty challenge for global medical equipment manufacturing industries is rising healthcare cost for workers which in turn affects the cost of equipments. With the competitive pressure increasing the cost of the equipments will not be the wisest choice, at the same time compromising with workers are also impossible. When compared with other manufacturing industries, medical equipment industries are lag in innovation because of less skilled labours and scientists. The industries which surmount all the challenges will dominate the global market in the future.