The Medical Technology Sector
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HEALTH MADE IN GERMANY The Medical Technology Sector 1 The Medical Technology secTor Summary The German medical technology sector is well positioned in international markets. It has estab- lished strong trading partnerships with health- care stakeholders across the globe and profits from increased demand worldwide. By combin- ing long-standing competences in engineering, manufacturing and healthcare, German companies are pioneers in the development of new medical devices and services. They provide state-of-the- art products that fulfill the highest quality and safety standards in accordance with international regulations. The industry also benefits from exceptional research facilities in the different health and engineering disciplines, optimal health- care infrastructure with internationally renowned hospitals, and excellent manufacturing standards. EUR 29.9 bn turnover generated by the German medical technolgy sector in 2017 1,300+ German manufacturers active in the medical technology sector 18.6% of German medical technology exports to North America in 2017 1,340 German medical technology patent applications in Europe in 2017 2 The Medical Technology Sector | health-made-in-germany.com Market Data The medical technology industry is a major pil- German Medical Technology Turnover* 2011 to 2017 lar within modern healthcare systems, providing in EUR billion innovative solutions for current challenges and needs. German companies enjoy global acclaim for their high-quality products and services, allowing Export turnover Domestic turnover Germany to consolidate its position as one of the 29.9 world’s leading healthcare providers. 29.2 27.6 19.1 25.4 18.6 24.6 The sector in Germany is largely made up of 24.1 17.6 23.2 family-owned small and medium-sized enter- 16.4 15.5 15.9 prises (SMEs) who are backed by tradition, 14.5 quality and high standardization. In 2017, the approximately 1,300 medical device manufactur- ers (>20 employees) and their 137,900 employees generated EUR 29.9 billion in total sales. This represents a continuous revenue growth com- 10.6 10.8 pared to previous years. The industry is strongly 10.0 9.0 commited to research and development (R&D). 8.7 8.6 8.7 Approximately nine percent of revenue is spent on R&D activities. The high degree of innova- tion in the German medical technology sector is further borne out by the fact that one third 2011 2012 2013 2014 2015 2016 2017 of turnover is generated from medical prod- Sources: SPECTARIS, German Federal Office of Statistics 2018 ucts that are just three years old or younger. *data refers to German medical technology companies with >20 employees Germany is second only to the United States in terms of medical technology patents filed at the This innovative spirit goes well beyond medical European Patent Office. technology companies active in the field of in- patient and out-patient healthcare, rehabilitation Excellent domestic R&D conditions have con- and prevention. Germany also has a solid base tributed to the formation of a diverse start-up of companies providing high-quality and innova- environment in Germany. Driven by regional tive processing, production and manufacturing governments, large companies and clinics, more services to clients in the medical technology than a dozen accelerators and local hubs support industry. the foundation of new medtech start-ups – most of them focusing on digital health solutions. These attributes are major reasons for the suc- cess of German medical technology companies in the global market. A large share of revenue is Top EU Medical Technology Industries generated from exports – Germany is the third- in EUR billion largest provider of medical technology services and products globally. The strongest demand National Industry Country arises from its nearest neighbors, with one third Turnover* of European medtech sales originating from Ger- Germany 32.39 man companies and almost half of all German medical technology exports going to other Euro- Ireland 11.62 pean countries. France 11.02 Germany is also a respected trading partner in Italy 9.51 North America and Asia, regions that account for approximately 19 percent of German exports United Kingdom 8.15 respectively. Emerging markets such as China and India have also helped revenue growth, providing Sources: Eurostat, SPECTARIS 2018 a solid base for German medical technology com- *referring to 2015 or latest available national sources; also includes small companies with <20 employees panies’ international expansion. 3 eMerging MarkeTs and digiTal healTh Industry Trends Growing Export Markets German Medical Technology Export Turnover Demand for modern healthcare infrastructure – by Country 2017 based on high-quality medical technology prod- in EUR billion ucts and standards – is rising across the globe thanks to increasing economic wealth and well- being as well as demographic change. The German 4.05 medical technology industry is excellently posi- tioned, enjoying specific export growth in Asian, African and Middle Eastern countries. One of the most important emerging markets is China where German companies generated sales of around EUR 1.75 billion in 2017, surpassed only by sales 1.75 of EUR 4 billion in the United States. Other rising 1.50 1.46 trading partners include Japan, India and certain 1.11 African countries. New regulatory frameworks for the approval or market entry of foreign medical products based on existing CE marks will stimu- USA China The Netherlands France Italy late further expansion in these markets. Sources: German Federal Office of Statistics, SPECTARIS 2018 Digital Health Know-how Advanced global health standards boost demand tools. Germany’s dynamic digital health land- for digital health products and telemedical scape is home to established corporations and devices. The disruptive nature of digital health start-ups alike, bringing together long-standing innovation is dramatically changing the structure IT expertise and high-level healthcare profes- of health systems worldwide, offering growth sionals in hospitals and clinics. The interlinking opportunities for digital health solutions in of in-patient and out-patient care is among the emerging countries. The German medical tech- major issues addressed, leading to the improve- nology industry provides a broad spectrum of ment for rehabilitation services and homecare. services in this field; be it medical imaging and Wearables, cloud computing, blockchain tech- diagnostics, IT-based medical information sys- nologies, artificial intelligence (AI) approaches, tems, video consultation, wearables to monitor deep learning tools, and virtual reality systems chronic diseases, cloud-based patient data stor- are all explored to help meet today’s healthcare ing or digital doctor-to-patient communication challenges. German Medical Technology Exports by Region 2017 in percent EU 41.9 North America 18.6 Asia 18.6 Rest of Europe 9.3 South and 3.4 Central America Sources: German Federal Office of Statistics, SPECTARIS 2018 4 The Medical Technology Sector | health-made-in-germany.com AI-based Medical Imaging Global Medical Device Sale by Application Area 2017 Germany offers strong clinical expertise and in USD billion world-class professionals in the fields of oncol- ogy, cardiology, neurology, diabetology, and infec- tious diseases. According to data published by the Cardiology 46.9 BVMed medical technology industry association, these indications belong to the top priority R&D Diagnostic 39.5 topics addressed by German businesses. Imaging Companies work closely together with university Orthopedics 36.5 hospitals and private clinics domestically and internationally. Fast and precise high-resolution medical imaging – such as magnet resonance Ophtalmics 27.7 imaging (MRI) – supporting diagnostic and treat- ment processes in hospitals is just one of the General & 22.1 strengths of the German medical technology Plastic Surgery industry. Large corporations, mid-sized compa- nies and start-ups adapt a number of innovative Endoscopy 18.5 approaches to provide more efficient products and services. AI-based systems are clearly at the top of the agenda for optimizing treatment Dental 13.9 outcomes for cancer and skin diseases. Other Wound applications focus on the further development of 13.0 preventive healthcare strategies. Management Engineering Excellence Healthcare IT 11.8 German excellence in engineering, processing and automation makes the country a hot spot for Diabetic Care 11.7 developing technically complex devices, machines and robotic- or sensor-based processes for use in Source: Evaluate Ltd. 2018 the medical technology industry. Specific com- petences exist in the development of completely new surgical operation systems with connected devices, thereby bringing IT-based infrastructure and innovative medical products together. German companies have an enviable reputation for producing and manufacturing high-quality materials adapted and intended for use in medi- cal products like implants and prostheses. Trends, such as 3D printing and innovative polymers, are explored in close cooperation with academic DIGITAL HEALTH SECTOR research institutes and start-ups. This provides novel functionalities and enhanced production A significant number of processes to medical technology industry clients. HEALTH MADE IN GERMANY companies in Germany The Digital Health Sector are developing digital health solutions. This publication gives an overview of the sector and provides partner links. 1 5 Broad ProducT and service sPecTruM