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Medical Equipment Market Report 2009


Description: The UK market for medical equipment and consumables was worth an estimated £3.83bn in 2008, having increased by 7.6% over the course of the year. Medical equipment is the largest of the two sectors by value and, therefore, accounts for more than half of the market's total value.

The overall market enjoyed strong growth over the review period (2004 to 2008), which was driven by robust increases in spending on the NHS, the increasing sophistication — and, hence, cost — of equipment, and the buoyancy of the economy, which supported spending on private healthcare.

Rapid technological progress has been one of the key features of the medical-equipment market. The need to control the rising cost of healthcare associated with the ageing populations that are the norm in many advanced economies (and some developing countries, e.g the People's Republic of China) is helping to drive technological change. Across the industry, companies are investing heavily in developing new products that integrate the latest information technology in order to reduce the costs of operating the devices, improve accuracy and quicken the pace at which information is processed.

Both sectors of the market have undergone considerable consolidation over the past 10 years. Nevertheless, the range of companies remains broad, ranging from multinational giants such as GE Healthcare (which is owned by the General Electric Company of the US) to small, specialist, innovative firms. Very large consumer-healthcare companies, such as Smith & Nephew and Johnson & Johnson, have an increasingly strong grip on the consumables sector, which is characterised by comparatively low-cost, high-turnover products such as dressings. Here, customers are focused on obtaining the lowest possible price, and giant firms have a huge advantage in terms of their buying power.

We expect the annual growth rate to decline over the forecast period (2009 to 2013), with the medical-devices sector coming off worst, as a result of the slowdown in NHS spending, which will become more pronounced after 2010. Since most medical consumables are low-value, essential products, that sector is likely to fare better. Nevertheless, many new medical devices coming onto the market promise operational cost savings, which could be a major promotional advantage, given the pressures on NHS managers to contain costs.


Contents: Executive Summary

1. Market Definition
REPORT COVERAGE.
MARKET SECTORS
Medical Equipment
Medical Consumables.
MARKET TRENDS
Slowdown in Health Spending
Government Plans for NHS Reforms
Advancing the Adoption of Technology
ECONOMIC TRENDS
Gross Domestic Product
Table 1.1: UK Gross Domestic Product at Current and
Annual Chain-Linked Prices (£m), 2004-2008
Household Disposable Income
Table 1.2: UK Household Disposable Income Per Capita (£), 2003-2007
Inflation.
Table 1.3: UK Rate of Inflation (%), 2004-2008
Unemployment
Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2004-2008
Population
Table 1.5: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008
MARKET POSITION
The UK
Overseas
Table 1.6: Total Healthcare Spending as a Percentage of Gross Domestic
Product by Country (%), 2006

2. Market Size
THE TOTAL MARKET
Table 2.1: The UK Market for Medical Equipment and Consumables by Sector
by Value at Current Prices (£m at msp), 2004-2008
Figure 2.1: The UK Market for Medical Equipment and Consumables by Sector
by Value at Current Prices (£m at msp), 2004-2008
BY MARKET SECTOR
Medical Equipment
Table 2.2: The Medical Equipment Sector by Value at Current Prices
(£m at msp and %), 2004-2008
Medical Consumables
Table 2.3: The UK Medical Consumables Sector by Value at Current Prices
(£m at msp and %), 2004-2008
OVERSEAS TRADE

3. Industry Background
RECENT HISTORY
Telemedicine
NUMBER OF COMPANIES
Table 3.1: Analysis of UK VAT- and/or PAYE-Based Enterprises Engaged in the
Manufacture of Medical and Surgical Equipment and Orthopaedic Appliances
by Turnover Sizeband (number and %), 2008
EMPLOYMENT
Table 3.2: Analysis of UK VAT- and/or PAYE-Based Enterprises Engaged in the
Manufacture of Medical and Surgical Equipment and Orthopaedic Appliances
by Employment Sizeband (number and %), 2008
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
HOW ROBUST IS THE MARKET?
LEGISLATION
Medicines and Healthcare products Regulatory Agency
European Directives
Medical Devices Directive
CE Mark.
KEY TRADE ASSOCIATIONS
Advanced Medical Technology Association
Association for the Advancement of Medical Instrumentation
Association of British Healthcare Industries
European Confederation of Medical Devices Association
European Diagnostic Manufacturers Association
GAMBICA
Other UK Trade Associations and Organisations

4. Competitor Analysis
THE MARKETPLACE
MARKET LEADERS.
Abbott Laboratories Ltd
ArjoHuntleigh UK
Baxter Healthcare Ltd
Becton, Dickinson UK Ltd
B Braun Medical Ltd
GE Healthcare Ltd
Johnson & Johnson Medical Ltd
Philips Healthcare UK
Smith & Nephew PLC
Other Companies
OUTSIDE SUPPLIERS
MARKETING ACTIVITY
Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats 35
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
THE NATIONAL HEALTH SERVICE
Introduction
Funding
Management
Healthcare Spending
Table 6.1: NHS Expenditure in England (£m), 2002/2003-2010/2011
Structural Organisation
England
Wales
Scotland
Northern Ireland
NHS Purchasing and Supply Agency
PRIVATE HEALTHCARE
Table 6.2: UK Consumer Spending on Healthcare by Category of Goods
and Services (£m), 2003-2007
Major Companies
BUPA
General Healthcare Ltd
Nuffield Health Care Ltd

7. Current Issues
NHS CONSTITUTION TO IMPROVE RIGHTS OF PATIENTS
HEALTH COMMISSION REPORT ON THE NHS
TECHNOLOGICAL DEVELOPMENTS
Medical Devices Getting Smaller
CORPORATE NEWS
Abbott Laboratories
Boston Scientific

8. The Global Market 49
TOTAL MARKET SIZE
THE US
EUROPE
JAPAN
CHINA AND INDIA

9. Forecasts
INTRODUCTION
The Economy
Table 9.1: Forecasts for the UK Economy (%, million and 000), 2009-2013
FORECASTS 2009 TO 2013
Table 9.2: The Forecast UK Market for Medical Equipment and Consumables
by Sector by Value at Current Prices (£m at msp), 2009-2013
Figure 9.1: The Forecast UK Market for Medical Equipment and Consumables
by Sector by Value at Current Prices (£m at msp), 2009-2013
MARKET GROWTH
Figure 9.2: Growth in the UK Market for Medical Equipment and Consumables
by Value at Current Prices (£m at msp), 2004-2013
FUTURE TRENDS
Demographic Changes
An Ageing Population
Table 9.3: UK Population Projections by Age (000), 2006-2031
A Growing Population
Sector Dynamics
Globalisation

10. Company Profiles
Abbott Laboratories Ltd
Baxter Healthcare Ltd
Becton, Dickinson UK Ltd
B Braun Medical Ltd
GE Healthcare Ltd
Johnson & Johnson Medical Ltd
Smith & Nephew PLC

11. Further Sources
Associations
General Sources
Government Publications
Other Sources
Key Note Sources
Research
Range of Reports


Companies Mentioned -Abbott Laboratories Ltd -Baxter Healthcare Ltd -Becton, Dickinson UK Ltd -B Braun Medical Ltd -GE Healthcare Ltd -Johnson & Johnson Medical Ltd -Smith & Nephew PLC


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