Big Data and Automation Trends in the Medical Device Industry
According to the U.S. Department of Commerce, the United States is the largest medical device market in the world with a market size of around $156 billion (2017). Zacks Industry research in 2018 ups the revenue estimate to $180 billion, and cites JPMG data that estimates that the global annual sales are forecasted to reach $800 billion by 2030. The aging global population and advances in science ensure demand that in turn, will fuel sales.
The industry as a whole is waiting for the legislative outcome of the repeal of the Medical Device excise tax that has promise to increase both hiring and investment in medical device manufacturing firms. On March 7, 2019 U.S. Senators Pat Toomey (R-Pa.) and Amy Klobuchar (D-Minn.) introduced bipartisan legislation to repeal the punitive medical device tax. The 2.3% excise tax, when implemented from 2013-2015, resulted in 29,000 jobs lost along with a $34 million dollar reduction in research and development.
The repeal of this tax is projected to attract further investment along with the global growth fueled by an aging population and medical breakthroughs signal a bright future for the expansion of the medical device industry.