Despite austerity movements around the globe and the impending U.S. device tax, the global market for medical devices will grow to $415 billion in 2016, according to analysis from Kalorama Information.
Despite the threats of unfavorable policies for devicemakers, Kalorama predicts growth on the strength of emerging market sales and aging populations in need of devices. All of that will bring the market to $415 billion from 2011's $322 billion.
"2011 was a year of cost control," Kalorama Publisher Bruce Carlson said in a statement, adding that the industry is learning to cope with new policies and work outside its comfort zone. For instance, while the U.S. remained the largest market for medical devices, American companies grossed more in international sales than domestic ones, a trend that will likely only continue as developing countries enter the market and worldwide health reforms bring broader coverage.
Furthermore, devicemakers have increased their R&D spending, with top companies boosting research funds by 8% on average in 2011, Kalorama reports. "It's an indication of long-term optimism and a signal that the strategy is to find new products and product innovations in order to get around the lower reimbursements," Carlson said.