The Medical Technology Industry in Germany
Total Page：16
File Type：pdf, Size：1020Kb
INDUSTRY OVERVIEW The Medical Technology Industry in Germany ISSUE 2020 MEDICAL TECHNOLOGY IN GERMANY Europe’s Biggest Health- care Market “Germany is an extremely important market for Aerogen, and we look forward to continuing to strengthen our commitment here. With an in-country office, and an experienced team we are working closely with our customers and partners to meet their individual needs and grow together.” John Power CEO and Founder | Aerogen EUR 30 bn 2/3 sales generated by Germany’s medical of medical technology sales in export technology industry in 2018 markets in 2018 EUR 387 bn EUR 60 bn total annual health expenditure in 2018 – domestic out-of-pocket healthcare more than 11% of GDP market in 2018 ~100% 88% of Germany’s 82 million residents are covered of Germans are enrolled in a public health by health insurance insurance plan Global demand for innovative medical technology Domestically, more than 99 percent of the country’s 82 million solutions continues to grow as we live longer, healthier residents are covered by health insurance. German health lives. “Medical devices made in Germany” make a signi- insurers cover around two thirds of Germany’s total annual ficant contribution to enhancing patient health care and health spend of EUR 387 billion (or 11.4 percent of GDP). The quality of life around the world. Medical devices devel- out-of-pocket market is worth around EUR 60 billion. oped in Germany benefit from a world-class research and business environment, with the sector’s predominantly With its state-of-the-art infrastructure and its central small and medium-sized companies enjoying an inter- location in Europe, Germany is also an ideal location for national reputation as innovators and market leaders. serving surrounding European countries with an additional potential market volume of more than EUR 1,500 billion. Internationally, the “Made in Germany” seal continues to be held up as a guarantee of quality. This is especially the case in the medical device sector. In 2018, almost 70 percent of medical technology products made in Germany were exported to international markets. 2 The Medical Technology Industry in Numbers Medical Technology Made in Germany Innovative Cluster Networks The German medical technology industry, made Germany is home to more than 30 specialized clus- up almost entirely of small and medium-sized ter networks focusing on medical technology. Their enterprises, is highly innovative and generates a goal is to achieve continuous innovation in research significant share of its revenues from exports. and development as well as in manufacturing by In 2018, the approximately 1,300 medical device connecting companies, hospitals, universities, manufacturers (>20 employees) and their 140,000 and other research institutions. Dedicated cluster employees generated more than EUR 30 billion in management teams help obtain funding for joint sales – an increase of more than four percent over R&D projects, provide share facilities, and organize the previous year. Export markets are particularly educational training programs for their members. important to German companies – around two thirds of sales in 2018 were generated outside the Germany’s industry domestic market. Exports grew nearly six percent numbers speak for to a total of more than EUR 20 billion in 2018. German Medical Device Manufacturer themselves and for Germany is the world’s largest manufacturing Revenue Development a secure and suc- nation and enjoys 9.9 percent share of worldwide in EUR billion cessful investment medical technology production. This is in second in the country place behind the USA (38.9 percent) and before Revenue generated abroad Japan (8.9 percent) and China (8.1 percent) Revenue generated inland respectively. Growing Export Demand Medical technology "Made in Germany" is highly 2025 191 valued around the world. Although the US remains 186 1 76 the largest single market and demand from China 164 continues to grow, the largest share of German exports actually stays within Europe. Approxi- mately 42 percent of German exports go to EU 108 1125 member states and another nine percent to other 90 100 106 European countries. Nineteen percent of exports are shipped to North America and Asia respectively. 2014 2015 2016 2017 2018* *estimat Setting International Standards Source: German Medical Technology Association (BVMed) 2019 Close collaboration between science and industry has helped establish Germany’s medical technol- German Medical Technology Exports by ogy sector as an international beacon of quality, Destination 2017 performance and safety standards. A number of in percent institutions – including the German Joint Federal Committee (JFC) and notified bodies like TÜV and DEKRA – are responsible for ensuring the safety Europen Unon 42 and reliability of medical technology products and services produced in Germany. The industry North Amerc 19 is also subject to EU directives and regulations governing certification and marketability. Imple- As 19 menting essential industry norms including ISO 13485 (regulation of quality management systems) Europe (non-EU) 9 and ISO 14155 (clinical evaluation of medical technology) are common practice. All of this leads Other 11 to medical technology developed and made in Germany that meets the highest quality standards. Source: BVMed 2019 3 MARKET OPPORTUNITIES Healthcare in Germany Healthcare Expenditure International Patients Healthcare expenditure in Germany totaled EUR Some 10 percent of German hospitals have a spe- 387 billion in 2018; representing a more than three cifically international focus and existing services percent increase on the previous year’s spending dedicated to patients from abroad. Doctors with level. The amount is equivalent to 11.4 percent outstanding qualifications, highly specialized of GDP or approximately EUR 4,600 per capita. nursing staff, excellent diagnostics facilities, and a superb medical infrastructure together ensure Health Insurance that German hospitals offer the highest quality With around 88 percent of the German popula- medical care. tion enrolled in a public health insurance plan, the public health insurance system plays the Key Market Data 2018 dominant role in the allocation of healthcare · More than 99 percent of Germany’s 82 million funds. Eleven percent of the population opt for residents are covered by health insurance private health insurance, with less than 0.2 percent Healthcare spend- of the population having no insurance cover. · Total annual health expenditure: ing grew by three EUR 387 billion (11.4% of GDP) percent to EUR 387 Public health insurance providers covered EUR · Hospital expenditure: EUR 94.7 billion billion in 2018 221 billion or approximately 57 percent of total · Outpatient expenditure: EUR 95.5 billion healthcare expenses in 2018. Private health insurance companies reimbursed an additional · Number of hospitals: 1,942 (one third EUR 32 billion of medical expenses. The remain- private ownership) ing amount is covered by government budgets, · Number of hospital beds: 497,200 state-mandated long-term care insurers, the social pension fund, state-mandated accident insurance · Diagnosis Related Group (DRG) System providers, employers, and private households. (hospital sector): 1,292 DRGs, 205 additional remuneration titles In- and Outpatient Care · Number of active medical doctors: 392,400 In 2017, outpatient care accounted for more than · Number of dentists: 64,925 50 percent of annual health expenditure. The most significant outpatient facilities include doctor's offices (EUR 55 billion) and pharmacies (EUR 49 billion). Inpatient and partial inpatient institutions account for EUR 13.4 billion of total expenditure, of Total Annual Health Expenditure 2018 which EUR 94.7 billion was incurred by hospitals. in EUR billion Hospital Care In Germany, 1,942 hospitals – with total capacity of more than half a million beds – treated more 387 than 19 million patients in 2017. The average hos- pitalization period was 7.3 days. The country also had approximately 1,142 preventative care and rehabilitation facilities with nearly 165,000 beds 263 treating around two million patients. The average 207 rehabilitation stay was 25.4 days. In order to build up the necessary infrastructure, more than 1000 155 ambulatory healthcare centers (Medizinisches 107 Versorgunszentrum - MVZ) have been established on campus by hospitals in Germany. According to the German Hospital Federation, hospitals also provide specialized ambulatory care in some 20 Germn Frnce U Itl Spn million cases each year. Source: OECD 2019 4 Industry Overview 2020 | gtai.com Medical Technology Trends Germany’s Hidden Champions Telemedicine German medical technology is cutting edge. A Telemedicine is making further inroads into the diversity of companies – nearly all of them small German healthcare system. This is a development and medium-sized – develops and commercial- that could result in annual savings of EUR 5.6 bil- izes innovative devices across the range of more lion according to McKinsey & Company. Seven of than 500,000 individual products within the Germany’s 16 federal states already permit remote medical technology spectrum. Many specialize medical treatment by digital means, giving rise to a in very specific fields of application and product growing number of telemedicine service providers. types. While these companies may focus on niche markets, they are often global leaders in their Cara Care respective fields. Germany’s medical technology The Berlin-based