Publish Time: 2024-08-27 Origin: Site
Content:
The global medical electronics manufacturing market is witnessing rapid growth, The overall market size is expected to reach USD 13.40 billion by 2028 with a CAGR of 6.8% from 2022 to 2028. One of the major reasons for its growth is the increasing population of older adults who are more susceptible to chronic diseases and have a higher demand for medical electronics . According to the "Highlights of Global Population Ageing 2020" report released by the United Nations Department of Economic and Social Affairs: Over the next three decades, the number of older people worldwide is projected to more than double, exceeding 1.5 billion (16%) by 2050. As a result, more and more manufacturers are trying to seize the opportunity and start developing devices for the medical industry, the intense competition among these medical device manufacturers also drives the development of the entire market, more and more new technologies such as 5G technology, IoT, 3D printing are applied to improve the function and performance of medical equipment, and enhance the ability to diagnose and treat patients. At the same time, there are a variety of trends and challenges affecting the medical electronics market, so what is the current situation of this market, and how will it develop in the future?
SMT equipment also plays an important role in the medical electronics industry.
Let`s read on…
In this part, we will analyze the current market status of medical electronics manufacturing from different aspects: regions, applications, FDA class designation, and end users.
From the perspective of the global market, North America accounts for 45% of the entire market, Europe 30%, Asia Pacific 20%, and other regions account for 5%.
North America
As we can see from the figure, North America dominates the global medical electronics manufacturing market and will remain in the lead during the forecast period, and the US has the largest market share in North America. On the one hand, it has a largely increasing geriatric population which is more prone to chronic diseases such as Alzheimer's disease and has a high demand for medical devices. According to the report of the US Centers for Disease Control and Prevention (CDC), there are about 5.8 million Americans have Alzheimer's disease, which will increase to 14 million by 2060. On the other hand, the US has the best technologies in the world, which greatly promotes the manufacturing and development of related medical electronic products and the widespread use of medical electronic equipment.
Europe
In the European medical electronics market, Germany holds the largest share of 25.6%, followed by France, the UK, Italy, and Spain, while Poland is believed to be a country that will have the fastest growth pace in the forecast period, although it only accounts for a very small market share and its medical electronics market is not that mature. Currently, most of the medical devices in Poland are imported from other countries, and it has a growing demand for medical devices, especially home care devices, as its geriatric population has increased dramatically. The European medical electronics market is expected to witness huge growth in fields such as diagnostics, surgery, cardiovascular, oncology, and so on.
Asia Pacific
Asia Pacific is considered to be the fastest growing region in the global medical electronics market during the forecast period. The major players in this region are China, Japan, India, South Korea, and Australia, with China dominating the Asia Pacific medical electronics market.
The World Health Organization stated that there are around 80% of the geriatric population in the world will live in low- and middle-income countries by 2050, and the rapid growth of the geriatric population in this region is the major reason driving the rise in demand for medical electronics. Many countries in Asia Pacific including China and India are attracting foreign direct investment in the medical industry, whose governments are also increasing investment to introduce new technologies and develop medical electronics which can also promote the growth of the Asia Pacific medical electronics manufacturing market.
Imaging devices dominate the market
According to different applications in the medical electronics market, we mainly classify the market into four types: Imaging, Therapeutics, Patient Monitoring, and Home Care Products, and imaging devices dominate the market and are expected to take the lead in the next few years, among them, X-ray equipment and ultrasound equipment account for about 50% of the total imaging market share.
Home/hand care products are expected to grow at the fastest rate
In recent years, the medical electronics manufacturing market has triggered a miniaturization trend, which has also led to the rapid growth of portable and home care devices. Compared to expensive and rising hospital costs, devices such as thermometers, blood glucose meters, and portable ultrasound machines are much more popular in the home care industry as they are feasible, patient-friendly, and more cost-effective. More importantly, these devices provide much convenience for seniors who can receive medical care at home.
Class I medical electronics markets
Class I medical devices refer to gloves, urinals, and bandages that have high sanitary and safety requirements. These devices have very low demand for electronic products, which occupy less than one percent of the market, but the potential is relatively large.
Class II medical electronics markets
Class II devices include surgical needles, suture materials, and x-ray machines, and are slightly more complex than Class I devices. These devices account for approximately 72% of the medical electronics markets, and many electronic components, including capacitors, resistors, and inductors are widely used for such devices. And they are expected to continue to grow during the forecast period, especially in the medical testing and scanning equipment markets.
Class III medical electronics markets
Class III devices occupy about 28% of the medical electronics markets, as such devices are more complex and harder to get FDA approved compared to Class I and II devices. They are applied inside the human body, such as heart valves, bone implants, and pacemakers. There is a huge market value associated with implantable defibrillators, as these devices require the use of electronic components such as batteries, capacitors, resistors, and inductors.
We can divide the medical electronics manufacturing market by different end users: hospitals, ambulatory surgery centers, home care, and others.
The hospital segment accounts for 53% of the medical electronics market share, and hospitalizations have increased as the prevalence of cardiovascular diseases and respiratory infections in the elderly population. Additionally, hospitals covered by public health systems are equipped with advanced electronic medical equipment that will drive the expansion of this market in the coming years.
The ambulatory surgery centers segment accounts for 28% of the entire market and is expected to witness rapid growth at a CAGR of 13.1% during the forecast period as more and more surgeries are being performed at ambulatory surgery centers. Compared to hospitals, ambulatory surgery centers have a lower cost per treatment due to their high operational efficiency. What’s more, they provide professional care and good treatment methods to their patients, which greatly improves patient satisfaction.
1. Sensors and Wireless Technologies
Along with the popularity of wearable and non-invasive monitoring devices, sensors and wireless technologies are widely used to achieve the real-time monitoring function. People can easily monitor their health status, for example, wearable devices can monitor our heart rate and temperatures at any time. Additionally, these technologies build a bridge between doctors and patients, which enables people to communicate with medical professionals even at home.
2. 3D Printing
3D printing technology generates great interest in the medical industry, in 2018, the medical 3D printing market was valued at $973 million and is expected to grow to almost $3.7 billion by 2026. On one hand, 3D printing can be used to create customized surgical tools in a very short time. On the other hand, we can use it to make dental molds like crowns and braces, we can also create implants like hip and knee joints, prosthetics, and so on that would significantly help surgeons in their work and patient recovery.
3. IoT technologies
such as cloud computing, signal processing, and data analytics have been used in the medical industry for several years, and this trend is believed to accelerate during the forecast period. Now, more and more medical devices apply IoT technologies, especially when COVID-19 is sweeping the world. For example, health monitoring equipment in the hospital that supports the Internet of Things can prevent patients from getting infected. And doctors can track patients' health more effectively even when patients are not in the hospital; data collected from IoT devices helps doctors decide the best treatment methods to achieve desired results.
4. 5G Technology
5G drives the momentum of telemedicine which enables patients in areas with relatively scarce medical resources to receive timely diagnosis and treatment by experts. On the one hand, 5G supports a more stable network that can provide real-time and high-quality video, can transfer huge files of medical imaging data, which can improve the efficiency of collaboration between doctors so that patients can receive timely medical treatment. On the other hand, the use of 5G can also enhance AR, virtual reality, and spatial computing to improve the ability to perform less invasive treatments. There are so many potential applications that 5G can be used in the medical industry, one of the most exciting applications is to simulate complex medical scenarios to figure out the most feasible treatment methods for patients.
Traditional laboratory tests and diagnostic imaging take a lot of time, for example, MRIs and CT scans are expensive and time-consuming due to their complex procedure. But for some chronic diseases, which do not present any symptoms, therefore, it is important for people to monitor their heart rate, sleep quality, breathing irregularities in daily life. Therefore, people tend to use self-monitoring devices such as smartphones and tablets which also expand the growth of mobile app market. These devices provide access to people to get their medical records and even family members’ data to monitor their health status better. And this data plays a vital role, once it suggests an abnormality, people can react quickly and seek help from the doctor to avoid more serious problems.
Telemedicine is becoming increasingly popular in the medical field as it offers many benefits: first, it is cost-effective and saves patients’ time – there is no need for them to go to the hospital, instead, they can receive constant care even at home as doctors can monitor patients’ blood glucose levels or blood pressure remotely without any physical contact with the patient. Additionally, the adoption of telemedicine can alleviate the problem of unbalanced medical resources – doctors from different hospitals can use video conferencing tools to discuss medical treatment methods and decide the best solution for patients.
Partnering with external experts can help healthcare companies better identify market trends, manage risk, address challenges, and provide expertise that is not available within the company. For example, medical device manufacturers have a better understanding of manufacturing techniques such as CNC and 3D printing to produce more high-quality medical equipment for you. And they know if there would be shortages of materials in the market or what kind of medical devices are more popular, working with them can improve their competition in the market. Therefore, working with external partners is a very important strategy for healthcare companies.
Regulatory challenges
It is a big challenge for healthcare companies to go through the process of certifications and get approval from regulatory departments, which would be time-consuming especially when it comes to the devices that would be used for inside the human body. Thus, most healthcare companies turn to EMS companies that have strong quality programs and can help them handle types of certification work, and some EMS partners can even provide expert guidance on data integrity and software validation. What makes it more complicated is that regulatory requirements are evolving, making certification even more complex. For instance, they focus more on usability engineering and human factor analysis, they urge environmental compliance, and they increase expectations on information security and cybersecurity requirements as well.
Cyber Security
Along with the implementation of smart factory technologies, the risk of cyber attack has also been raised, it is not news that healthcare institutions are being hacked, so cyber security becomes a major concern and challenge in the medical industry. To mitigate such risk, we can host medical Internet of Things devices on separate networks to ensure that the entire facility is not attacked even if a breached device is hacked. At the same time, we need to ensure that there are reliable built-in security features for medical devices such as data encryption, passwords are required to power on the device and connect with other systems. The company can also offer cyber security training for all employees to reduce the potential dangers of network security issues.
R slow and expensive&re
Medical device manufacturing is a slow process that relies on extensive research and development, which requires a lot of clinical trials which is really a costly and time-consuming process. To promote the development progress, we need to apply advanced technologies such as cloud and robotic process automation(RPA). By using COULD-based collaboration, clinical data can be collected from different hospitals and sources to provide more scientific and comprehensive results. It helps medical device manufacturers to test products based on large sample sizes and can speed up the R&D processes by updating data from different sources in real time. In addition, we can combine robotic process automation with cloud solutions to speed up the whole R&D progress. RPA enables us to get the follow-up results faster by automating most of the processes, so that workers can pay more attention to other tasks.
Counterfeits
As the demand for medical devices continues to grow, the medical industry is facing another challenge: counterfeits. These counterfeits are harmful to the patients who use them and would divert revenue from legitimate medical device suppliers. The solution to this challenge is to implement a system that can verify the authenticity of medical devices. For example, manufacturers can create a unique ID for each product using blockchain technology, so that recipients can verify whether they are getting authentic devices or fake products.
It involves a lot of procedures and resources to develop a new medical device, which also requires knowledge and experience in the medical industry. So, if there is no professional team in your company, working with reliable medical electronics manufacturers would be a great option. They provide turnkey services ranging from medical device design, prototyping, manufacturing, assembly, and testing. Outsourcing to a good medical device contract manufacturing partner would allow you to bring new devices to the market with a short turnaround time and also save costs. They can literally handle everything related to the development of new medical devices, so that you can focus on other aspects of your business.
Stable supply chain
When choosing medical electronics manufacturers, we should pay attention to whether they have a stable supply chain and have established strong relationships with suppliers. Because this ensures an uninterrupted supply of high-quality raw materials and relatively favorable prices. What's more, shortening time to market and reducing costs are very important for medical electronics projects, and an unstable supply chain can lead to longer lead times and additional costs.
Engineering experience
Good medical electronics manufacturers have experienced engineering teams that will assess your needs to judge the feasibility of a project before it begins. During the process, if any issues are found, they will provide suggestions for modification to ensure smooth implementation of the project.
Traceable documentation and manufacturing processes
Complete production records can help us better trace all materials and components used, which is of great importance to all walks of life. For example, it facilitates the rapid recall of defective products, and in the medical electronics manufacturing industry, these records can be used to verify whether the product meets industry standards.
1. Foxconn
Foxconn is the top player on this list of medical electronics manufacturers in the world. It entered the medical electronics equipment market in 2014 and achieved a revenue of US$193.72 billion in 2020. Today, the company owns a biotechnology company that makes cancer detection technology and a company that makes laboratory equipment technology.
2. Wistron
The company is headquartered in Taiwan, and although its business focus is on the consumer electronics industry, the Wistron Medical Technology Corp subsidiary it founded occupies a large share of the medical electronics market, offering comprehensive services covering the design, manufacturing, and management of supply chain logistics for medical devices.
3. Jabil
Jabil is headquartered in Florida, and the medical device industry is the company's focus and one of its main sources of revenue. In 2013, they acquired Nypro and changed their name to Jabil Healthcare, which mainly provides services for various medical equipment such as diagnostic tests. The company has strong R&D strength and medical equipment production technology and is a world leader in medical electronic equipment manufacturers.
4. Flex
Flex is a Singapore-based company, formerly known as Flextronics International, that serves a wide range of customers from healthcare to the automotive industry to the communications industry. Flex, whose core business is the design and mass manufacturing of medical devices, worked with Jabil to ramp up production of ventilators to meet the needs of Covid-19 patients when the outbreak hit in early 2020.
5. MOKO Technology
Established in 2006, MOKO has been providing medical electronics manufacturing services to customers around the world for about 16 years. Providing large-scale services covering prototyping, manufacturing, and testing, all of MOKO’s products are regulated by the FDA. Certified with ISO9001 and ISO13485, the medical devices offered by MOKO are top-notch and trusted by leading healthcare companies.
6. Sanmina
Founded in Silicon Valley in 1980, Sanmina employs around 35,000 people worldwide. The company is known in the medical device industry, producing equipment such as surgical robots, MRI machines, and X-ray technology. Additionally, the company has created optical biosensors that can diagnose diseases, which are expected to be used in invasive procedures in the future.
7. Celestica
has over 70 years of experience in electronic manufacturing services, headquartered in Toronto, Canada, with offices in Asia and Europe, providing high-reliability design, manufacturing, and supply chain solutions for global customers. For medical electronics, it worked with StarFish Medical to scale up the production of ventilators. Additionally, the company is also focused on developing technologies for disease prevention.
8. Plexus
Plexus provides components and is involved in the design and manufacturing of products for a variety of industries, primarily the global communications, medical, security, and aerospace industries. This company offers a wide variety of medical electronic devices such as laboratory workflow automation, surgical robotics, tissue diagnostic equipment, and so on.
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