Many challenges await medical device manufacturers in the next dozen years. As for drugs, the new paradigm is that of the value proposition. KPmg’s study tries to fix some point to look at Medical devices in 2030.
Reinvent, reposition, reconfigure
The pathway to success in 2030 for medical device companies, following a three-pronged strategy:
- reinvent traditional business and operating models by integrating intelligence, delivering services beyond the device, and investing in enabling technology
- reposition for the future competitive landscape, to adapt to challenges presented by new entrants, new technologies and new markets
- reconfigure your position in the value chain of the future, by connecting directly with patients and consumers (B2C), vertically integrating (B2B) and/or transforming into `one-stop-shops’ for care.
Unbearable pressures disrupt the status quo
The medical device industry is poised for steady growth, with global annual sales forecast to rise by over 5 percent a year and reach nearly US$ 800 billion by 2030. These projections reflect increasing demand for innovative new devices (like wearables) and services (like health data), as lifestyle diseases become more prevalent, and economic development unlocks the huge potential in emerging markets – particularly China and India. Medical device companies will ultimately seek to play a larger role in the value chain and get closer to customers, patients and consumers. Done right, this will not only add new revenue streams for them, but also contribute to shorter, cheaper, and fewer hospital visits – and thus lower healthcare costs. Finally, the industry have to shift the focus from cost to value.