Over the last year, we’ve confronted a new reality in a world that changed rapidly, sometimes daily, for the medtech industry. Supply chain disruption unfolded across the globe early, with widespread ramifications for materials, labor and production. According to recent research by EY, two-thirds of medtech companies experienced revenue loss, with an average revenue decline of 5% across the medtech industry. This decline was higher for companies focused on elective procedures, as the pandemic strained healthcare systems or patients chose to delay surgeries during case surges or until after vaccination.

While Wall Street analysts predict recovery in the second half of 2021, uncertainty remains. Potential challenges include variant-driven virus resurgence, the tightening of the market for components and talent, and ongoing supply chain disruption, even as med device companies prioritize building greater resilience.

Opportunity also beckons, with growth in the orthopedics market projected to reach nearly $9 billion in annual revenue by 2025, a CAGR of 6.9%. Increasing procedure volumes, new products and technologies and an ever-growing potential market size are driving this reacceleration.

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