Medical Device Consulting

Where is the Medical Device industry going? How to succeed in the ever changing Medical Device market? We guide your journey!

The World Health Assembly, WHO´s supreme decision-making body, issued its first resolution on health technologies on its 60th meeting. The resolution urges Member States to acknowledge the importance of health technologies for the achievement of health-related goals. It also encourages Member States to expand their expertise in the field of health technologies, especially in Medical Devices.

Medical Device consulting assumes an important role in this globalizing and fast-changing world. To understand why that is, we need to understand what Medical Devices are, the nature of current trends, and the drivers and barriers in the segment. In addition, we need to take a closer look at current opportunities and the challenges that go along with them.


Medical Device Industry

Medical Devices are a crucial factor in promoting physical and mental health for people. They enable safe and effective prevention, diagnosis, treatment and rehabilitation of illness and disease.

Despite healthcare benefits, access to Medical Device systems differs widely across countries in the world. The WHO states that Medical Devices are essential for a functioning health system and it is working on policies to encourage improved access, quality and use of these products across the globe.

Together with the Bill and Melinda Gates Foundation, the WHO established the Global Initiative on Health Technologies (GIHT). The GIHT´s objective is to:

  • Encourage the international community to establish a framework for the development of national essential health technology programmes.
  • Challenge business and scientific communities to identify and adapt innovative technologies that could have a significant impact on public health.


Products and Companies Driving the Medical Device Industry

Medical Devices comprise a wide spectrum of products, ranging from basic product – such as band-aid – to state-of-the-art devices. The number and diversity of Medical Devices exceeds pharmaceutical products.

Medical Devices can be divided based on the type of technology they employ. Usually, high-tech and widely used Medical Devices hold the greatest share of the market. In fact, electro-diagnostic, orthopaedics and X-ray devices are the largest segments of the market.

Adapted from PRNewswire, 2014

Adapted from PRNewswire, 2014

Accordingly, big multinational companies commercializing state-of-the-art Medical Devices hold an important share of the market. Companies such as J&J, GE and Medtronic are the top sellers in the segment. Nonetheless, since R&D is less costly and time-consuming than in the pharmaceutical industry, the number of small and medium-sized enterprises has been rising in the past few years, adding competition and complexity to the industry.

Adapted from MDDI, 2014

Adapted from MDDI, 2014


Business Opportunities in the Medical Device Industry

One cannot underestimate the significance of Medical Devices in the health care industry. In 2012, the segment was valued at US $321 bn and it is expected to reach US $440 bn by 2018, growing around 5% yearly. The US is the largest market in this segment and it is expected to reach US $133 bn in 2016, which represents one third of the global market.

The European market comes in second place. Just recently, China has overtaken Japan as the third-biggest market. As the US, Europe and Japanese markets mature and slow down, emerging markets have been recognized as important growth frontiers for Medical Device firms.

Emerging Markets have unique characteristics that Medical Devices companies are still discovering. Identifying the winning strategies for success in emerging markets is challenging since local knowledge and tailored entry strategies are essential. As a result, Medical Device Consulting plays a key role in this process.


Revealing the Secrets of the Medical Device Industry in Emerging Markets

Emerging markets (EM) are showing the strongest growth in the Medical Device sector. The annual growth in emerging economies is in the double digits. Additionally, emerging markets are experiencing significant increases in income per capita, higher availability of medical coverage and development of the healthcare infrastructure.

Gaining a foothold in these regions presents a profitable opportunity for Medical Device firms. However, challenges come along with business opportunities.

Emerging markets bear unique traits, such as the level of affordability, accessibility and awareness. Additionally, cultural attributes and specific clinical procedures and protocols in each country increase the complexity of the local market. Overlooking these factors has prevented companies from fully capitalizing on their potential. Knowledge of local markets is an essential asset for companies pursuing business opportunities in emerging markets.


Drivers and Barriers of the Medical Device Industry in EMs

Emerging markets possess untapped business opportunities that can potentially be harvested by foreign companies. There are specific drivers and barriers influencing growth in emerging markets.




Are you Aware of the Current Trends in the Medical Devices Industry in EMs?

Growth within emerging markets is being driven by different products than in mature markets. On the one hand, each emerging market operates in a unique way. In most of them, the mid-end segment is experiencing the fastest growth. Nonetheless, competition from local companies is high as they have developed tailored and lower-priced products. On the high-end, foreign companies dominate the market; however, the growth is this segment is slower compared to the mid-end segment.

On the other hand, emerging markets present different clinical needs compared to developed countries. Companies entering emerging markets must adapt to these trends and work with local partners to gain local insights. Having an experienced partner or consultant who can provide guidance in the process is a key asset that will facilitate entry of foreign companies to new markets.


Challenges and Opportunities: Are you Prepared to Succeed in EMs?

Each emerging market is unique. Entering the market requires tailored strategies and collaboration with local partners who best suit your company. Working with competent local partners allows the company to overcome market barriers. It will also enable the company to tailor its product portfolio to local needs.

Customization of products is a strategy that companies may adopt to increase their share in emerging markets. Partnering with local partners can allow them to manufacture and distribute lower-priced products with sufficient quality.

Building distribution channels will also allow companies to penetrate the market more effectively. This can be done by establishing local offices, but the process is costly and time consuming. In contrast, partnering with local players may be a more effective strategy. Since local companies know the drivers and barriers of the market, the process requires fewer resources.

Local partners can provide highly valuable insight into the country and enhance the quality of services provided to the consumer. Local partners can also provide training and create awareness of new products, which facilitates adoption of new technologies. Finding the proper partner in the country is therefore the key to success for Medical Device companies adopting this strategy.


Medical Device Consulting Paves the Way for You…

The Medical Device Industry is complex and can be confusing at times, it is important to make use of the knowledge possessed by specialists in each region. As already stated, current trends in emerging countries differ significantly with respect to those in mature markets. For a Medical Device company that is focused on its home market or region, it can be a risky to enter a new region with different regulations, clinical needs, history and culture without having any background knowledge.

Each country and region has unique needs, preferences and consumer behaviours; and the Medical Device industry is not an exception. Working with a consultant who has solid experience with and insight into the local market improves communication and can help you to make more promising deals and avoid non-attractive business.

A consultant will save you valuable resources in terms of time and money. Additionally, a consultant will help you shape your strategy while you keep concentrating on your regular daily business.


Why Chameleon Pharma Consulting

Chameleon Pharma Consulting can help you identify the ideal partner for you and your company among Emerging Markets. We conduct detailed market analysis and develop tailored international strategies for you. We guide you through registration processes and help you with regulatory questions. We guarantee successful and functioning partnerships and profitable business expansions. As a consulting firm, we benefit from our expert knowledge as well as the long-time experience of our trusted partners all over the world. Our international and dynamic team is proud of our intercultural competence and worldwide network. We work, while you continue to concentrate on your daily business.