Impact of COVID-19 pandemic on medical devices market

Market Research & Insights: The COVID-19 pandemic is leading to significant growth in demand for medical devices such as ventilators, medical clothing, face masks, and diagnostic devices such as test kits, whereas the revenue of companies, whose products rely heavily on elective and non-essential procedures, are expected to be impacted negatively.

Many medical device companies have revised their financial guidance for 2020 due to the uncertainty associated with the degree and duration of the impact of the outbreak.

The short-term impact of COVID-19 is expected to cause a decline in annual growth rate of the global medical devices market from 5.4% to 3.0% in 2020. The global medical devices market, which was projected to be worth USD 472 billion in 2020 before the COVID-19 outbreak, is now expected to generate USD 461 billion this year.

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Key Reasons for the Impact

Delay in Elective Surgery

Elective procedures have been delayed as countries divert their healthcare resources to contain the COVID-19 pandemic.

The impact of the delay in elective procedures on the demand for medical devices is significant as these types of procedures account for around 40% – 50% of the hospital’s revenues in some countries.

Supply Chain Disruptions

The supply of medical devices or the raw material required for the manufacturing of medical devices have been disrupted as many countries went into lock-down. The forced quarantine in China hit the supply-chain the hardest as the country transitioned from being a key player in the manufacturing of low-end to high-end medical devices.

With a significant increase in the demand for certain medical devices, some countries halted exports, especially the devices that are vital in fighting against the COVID-19 outbreak.

Impact of China

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China, which accounted for around 7% of the global medical devices market, was projected to grow at a CAGR of around 10% in the 2018 – 2025 period before the outbreak. The demand for medical devices is expected to decline considerably in the first quarter of 2020 in China and impact the revenues of all major medical device companies.

Segments with Low Level Exposure to COVID-19

• In-vitro Diagnostics
• Diagnostic Imaging
• Respiratory Care
• General Hospital and Healthcare Supplies

Segments with High Level Exposure to COVID-19

• Orthopaedic Devices
• Cardiovascular Devices
• Minimally Invasive Surgical Devices
• Dental Equipment and Devices
• Diabetes Care Devices
• Ophthalmic Devices