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Medical Equipment Market Report 2009
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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. |
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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 |
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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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