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Medtech market of Russia
Main article: Medtech (Russian market)
2023
Why investments in medical tech fell in the world and what to expect in the market in the coming years
In 2022, developers of medical and biotechnology around the world raised a total of $133.8 billion, which is a third less than a year earlier, when the figure was measured at $89.7 billion. This is evidenced by the data of the analytical company Dealroom.co, which were released in April 2023.
Despite the significant market decline, its volume still remained below the level of pre-pandemic (we are talking about the COVID-19 coronavirus pandemic). So, in 2019, about $59.7 billion was invested in medical and biotechnology projects on a global scale.
Bullish sentiment in the 2021 medtech investment market is "chilled" because inflation and economic uncertainty have left investors with less capital, the researchers said.
Rock Health analysts believe the three-year digital health "funding cycle" in 2022 was nearing its end. For that year, the total amount of funding for startups in the field of digital health in the United States amounted to $15.3 billion in 572 transactions, while the average transaction size was $27 million - this is slightly more than the level of 2020.
According to experts, in 2023, the amount of venture financing for digital health care will be $10 billion - less than the level of 2019. Whenever investments start to grow again, the next growth trajectory will be more similar to 2011-2019 than 2019-2021 - the investment market will take a slower and more sustainable path, better reflecting initial risks and giving priority to companies with balanced strategies.
DelveInsight expects the global digital healthcare market to exceed $486 billion by 2027 - dominated by North America during the forecast period. Competition is also expected to increase - many companies are investing in emerging markets for future growth.
According to the Arizona report, the digital health care and wellness technology market will grow at a CAGR of 22% and will reach as much as $1.1 trillion in 2028. Analysts cite the growing demand for telemedicine as factors in such promising growth, as well as the active introduction of AI and data analytics (for example, remote patient monitoring systems) into healthcare.
According to forecasts of Research And Markets, the global telemedicine market will grow by an average of 21.6% per year and by 2029 will reach $539.73 billion. Analysts cite the growth of chronic diseases combined with an increase in the population of senile age, a shortage of medical workers and a growing awareness of the benefits of telemedicine in society as the main drivers of this market. In addition, the use of AI and virtual assistants, as well as the development of telerobots, will open up significant prospects for the industry.
The global medical robot market is expected to grow to $21.65 billion in 2026 at a CAGR of 18.1% - growth will mainly stimulate demand for accurate and correct laparoscopic operations that medrobots are effectively coping with.
At the same time, patient privacy concerns and the lack of standards inherent in traditional healthcare systems may limit market growth. Additional barriers to growth can be cases of misdiagnosis, the reluctance of society to leave traditional systems and the technological lag of developing countries.
The limited technical structure in emerging markets and resistance from traditional medical providers may also restrain the growth of the medical IT solutions segment: according to a new MarketsandMarkets report, in 2022 the IT market in medicine amounted to $394.6 billion, and by 2027, with an ideal scenario, it could reach $974.5 billion. However, developed countries in North America and Europe, or rather, their problems with an unsettled regulatory environment and cybersecurity, can also hinder growth.
Health care providers are also expected to benefit by improving patient outcomes and quality of care through the successful implementation of electronic health records (EMR). The volume of the global EMR market in 2021 amounted to $30.7 billion. According to forecasts of Transparency Market Research, by 2031 it will exceed $50.3 billion.[1]
Named 10 main medical trends
On January 31, 2023, the American company IQVIA, which provides services in the pharmaceutical and biopharmaceutical fields, named 10 main trends in the field of medical technology.
It is noted that 2023 will create new uncertainties for the industry, since optimism caused by a gradual recovery from difficulties and restrictions due to the COVID-19 pandemic is replaced by pessimistic sentiments amid economic difficulties. The medtech market is facing new challenges such as personnel shortages, the energy crisis and rising interest rates. Analysts say that in such a situation, players need flexibility and vision more than ever to adapt to increasingly dynamic global changes. Key trends in the medical tech industry are as follows:
1. Deglobalization is gaining momentum and affecting the medical technology industry at all stages
The most commonly used indicator of globalization - the ratio of world trade to GDP (according to the World Bank) - decreased from 61% in 2008 to 52% in 2020. Trade restrictions between the United States and China, the COVID-19 pandemic and the current geopolitical situation emphasized the importance of having sufficient stocks of critical components and raw materials, as well as a well-diversified supplier base. While manufacturers are likely to invest in further supplier diversification and stockpiling, these initiatives will have certain limitations. Fragmentation at the global level can contribute to further integration at the regional level.
2. The decline in investment in the medical sector will manifest itself differently in different regions of the world
A drop in M&A transactions, a sharp decline in capital raised and the difficulty of investing in R&D will dominate the global market. However, different geographic regions may face unique manifestations of these problems. In such an environment, companies around the world must quickly adapt to slowing economic growth and find opportunities for innovation and investment, including, for example, new cross-sectoral partnerships and cooperation with academia.
3. Direct Advertising and Consumer Sale (DTC) has proven its value and will continue to grow as a tool to drive the adoption of medical technology
Direct-to-consumer (DTC) is consumer-focused marketing without intermediaries. This advertising model is expected to continue to gain traction in 2023 as a driving force behind the adoption of devices with which patients interact directly. This includes insulin pumps, continuous glucose monitors, oxygen concentrators, home diagnostics and dental devices. This category will expand with the advent of more intelligent devices.
4. Scale up volume-based procurement policies (VBPs)
This model will continue to have a devastating impact on the business of medical tech market players in China. The IQVIA analysis showed that the average reduction in VBP prices in the PRC from 2000 to mid-2021 was approximately 70% and 80-90% for individual expensive consumables, such as coronary stents.
5. The era of loosely regulated reimbursement for diagnostics in the United States is coming to an end
The breadth and variety of diagnostic tests, the complexity of coding and billing policies create difficulties for HCWs. At the same time, limited regulation makes it possible for fraud and abuse. Therefore, control in the relevant area is strengthened.
6. Continued decentralization of health care requires more effective integration of information flows
The COVID-19 crisis has made clear how difficult it is to use multiple data sources and care locations to predict outcomes or improve treatment. In this regard, easily customizable but standardized platforms are expected to emerge that integrate data generation (including in vitro imaging and diagnostics), dissemination, and analytics.
7. The problem of lack of personnel
Health care providers will reach out to health care market players to address the growing shortage of health care workers through innovation in communications and automation.
8. Services with added value
Manufacturers create digital and hardware ecosystems that bring additional value to customers and stand out from competitors. This direction will continue to develop.
9. Inflationary and economic pressures
According to the researchers, against the background of rising costs of raw materials, logistics and labor, the market is becoming more differentiated, and the division into segments occurs already within individual regions. Medical companies have learned to respond quickly to inflation and price pressure, so the market has good opportunities to maintain profitability and increase productivity through targeted innovations in these segments, experts say. Inflation and economic problems exacerbate differences in access to health care in different markets, but also open up opportunities for innovation in the field of medical technologies, minimizing differences between the indicators of different segments, the report said.
10. High interest in sustainable development
This model will continue to force medical tech companies to show progress in achieving ambitious environmental, social and corporate governance (ESG) goals[2]
2021: IDC makes 10 medtech forecasts
In mid-January 2021, IDC Health Insights experts released the IDC FutureScape: Worldwide Health Industry 2021 Predictions report, where they presented their forecasts for 2021 and subsequent years regarding the future of the medical technology market.
Analysts note that 2021 will largely be determined by the "destructive forces of COVID-19," since the pandemic has changed "all relations in all industries for many years to come." The researchers note the increased resilience of organizations of all shapes and sizes, changes in supply chains and resource consumption, new approaches to data management and IT architecture, and a rethink of relationships with both employees and healthcare consumers.
Here are 10 predictions submitted by IDC experts:
- The economic and clinical vulnerability caused by the pandemic will force 20% of health organizations to switch to comprehensive care to improve outcomes in 2021.
- By the end of 2021, seven out of 10 leading wearable wrist device companies will release algorithms capable of detecting potential signs of infectious diseases in the early stages, including symptoms of COVID-19 and influenza.
- In connection with the emergence of the new coronavirus, the investment of biomedical companies in digital initiatives to use real data by 2022 will double.
- Worried about the COVID-19 pandemic, life sciences and health care companies will increase their investment in AI and advanced analytics by 50% by 2022 to avoid future supply chain disruptions.
- By 2023, 65% of patients will have access to care through the "digital front door" as health care providers look for better ways to access care and interact with patients.
- Remote care and clinical research using digital technologies, which have come to the forefront thanks to COVID-19, will provide 70% growth in the costs of biomedical companies for connected medical technologies by 2023.
- By 2023, 60% of health insurance products will rely on two types of characteristics, standard and individualized, which will ensure the mobility of services and allow for the social determinants of health.
- By 2024, the proliferation of data analysis will result in 60% of healthcare organizations' IT infrastructure being built on a data platform that will use AI to improve process automation and decision-making.
- To provide immersive training for healthcare professionals and improve customer experience, 60% of providers will move from proof of concept to full ARVR deployment/technology by 2025.
- By 2026, 65% of medical imaging workflows will use AI to identify underlying diseases and conduct clinical interventions, and 50% will use telerentgenology to share research findings and leverage the knowledge of experienced radiologists.
A number of other research firms have given less favorable predictions about what healthcare will look like in 2021. For example, the study conducted PwC highlighted six main issues:
- optimization after the explosive growth of the telemedicine sector;
- adapting to changing clinical research;
- encouraging digital relationships that reduce the burden on doctors;
- prediction uncertainty;
- changing health portfolios to drive growth;
- creating a sustainable and flexible supply chain for long-term provision.[3]
2019: Frost & Sullivan: Healthcare technology market size to reach $2trn
In 2019, the global technology market in the region health care will increase to $1.96 trillion (against $1.87 trillion in the previous year), and the annual growth rate (CAGR) will be 5.1%. This data was shared TAdviser consulting with the company based on the Frost & Sullivan results of a study by Global Healthcare Market, Outlook 2019. According to the company's experts, the growth of the technology segment to medicine in will have a significant impact on related markets such as, (AI), analytics big data artificial intelligence mobile medicine, smart accessories, etc.
 | Globally, 2019 can be considered the year of value-oriented healthcare, - said Alexey Volostnov, director of the Russian representative office of Frost & Sullivan. - Increasing access to affordable health services will be a key challenge in the markets of Asia, Africa, Central and Eastern Europe. From a technological point of view, the main trend of this year in the field of health care worldwide will be digital transformation. " |  |
According to Frost & Sullivan, one of the key areas of digital transformation in medicine is the development of the voice application market. Interactive virtual assistants managed by AI are already becoming a familiar technology for relatively simple tasks: maintaining medical records, documenting and managing customer relationships, etc. Technologies for voice and speech recognition are created not only by specialized companies (Nuance, Orbita, eClinicalWorks), but also by technology giants such as Amazon, Apple, Google and Microsoft. Their solutions help healthcare organizations save money by automatically processing incoming requests with AI. The focus of the developers is also the creation of personalized AI systems that can understand the context. This technology will allow caring for the elderly and replace carers with treatment at home.
Artificial intelligence technology is widely in demand not only as a voice assistant, but also in many other areas of medicine. According to analysts' forecasts, the AI market in the healthcare segment will exceed $1.7 billion by the end of 2019, and the annual growth rate from 2018 to 2022 will be at 68.5%. Thanks to the development of technologies using artificial intelligence, the efficiency of workflows will increase by 15-20% in just 12-18 months. AI will also have a special impact on the development of digital pathology and diagnostics, according to Frost & Sullivan.
With the increase in the volume of data received in digital form, the relevance of the task of their processing and analysis will also increase, experts are convinced. So, according to Alexei Volostnov, by 2020 the volume of the market for the largest data in the healthcare sector will exceed $68 billion.
The number of areas and examples of practical applications of blockchain technology in medicine will also grow. By the end of the year, 5 to 10% of existing medical applications using blockchain as a basis will leave the testing stage and become partially available for mass use, Frost & Sullivan predicts.
In addition, according to analysts, during 2019, the global market for digital medical technologies designed to serve patients outside hospitals will grow by 30% (compared to 2018) and exceed the $25 billion mark. This market segment includes solutions designed to solve problems in such areas as medicine, therapy, psychotherapy, digital dentistry, as well as healthy nutrition.
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Notes
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