Study foresees continued medical technology growth
The medical technology industry, a growing sector of the Massachusetts economy, is expected to grow at a 5-percent annual rate through 2020, according to a forecast from a market research firm.
The report by Evaluate Ltd., ““EvaluateMedTech World Preview 2014, Outlook to 2020,” reveals global sales of medical technology are expected to reach $514 billion by 2020, with big mergers reshaping the lineup of industry leaders.
The report specifically focused on the pending merger of Medtronic and Covidien, estimated at $42.9 billion when it was announced in June.
“If the deal between Covidien and Medtronic goes through, we could see a new market leader. In an industry forecast to be worth more than half a trillion dollars in 2020, that is no insignificant achievement,” report author Ian Strickland said in a statement.
Looking at recent industry activity, the report showed that the value of completed medical technology mergers and acquisitions jumped 363 percent during the first half of 2014 compared with the same period in 2013. The report predicted that M&A activity will continue on a large scale, with the pending Medtronic-Covidien marriage representing the biggest merger in the sector’s history.
“2014 marks a year of rapid change for the global medical device market, particularly within the cardiology and orthopedic spaces, which have been dominated by megamergers,” Strickland said.
Among the report’s key findings
- Worldwide medical technology sales are forecast to reach $514 billion by 2020.
- Global research and development spending is set to grow 4.2 percent to $30.5 billion by 2020.
- $1.3 billion was raised in completed medical technology IPO offerings during the first half of 2014, 44 percent more than in all of 2013.
WBJ Web Partners
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