Medtech Market Opportunity is Massive — Is Your Company Prepared to Capitalize?
As early as spring of 2020, industry experts predicted an exponential increase in market demand for telehealth and other medtech products in response to pandemic-driven trends. More than a year later, demand continues to rise as telehealth is poised to supplant traditional patient care models.
Worldwide adoption of IoT-enabled medtech and Remote Patient Monitoring (RPM) is rapidly on the rise. According to Fortune Business Insights, the global medical devices market size is expected to reach USD 657.98 billion by 2028, exhibiting a CAGR of 5.4% during the forecast period.
The U.S. telehealth market is particularly strong due to a diversity of competitors, trends in reimbursement reform, and incentivization for large-scale deployment. The Veterans’ Health Administration (VHA) has also significantly contributed to a hospitable market thanks to its massive rollout of RPM programs. And while the U.S. telehealth market is the most mature, the European market is experiencing significant growth. Even in developing countries, urbanization and access to mobile phones are priming these markets for penetration.
At Pivot International, our advanced medtech expertise is behind some of the most successful telehealth and RPM devices on the market, including a state-of-the-art mobile phone ophthalmoscope and a sensored prescription bottle. Our consumer home-health innovations include the Zibrio SmartScale, an Honoree of the CES Innovation Award. And our clinical medtech includes the N-Tidal Personal Capnometer, winner of the European Product Design Award. With locations and product solutions for serving American, European, and Asia markets, we help companies worldwide turn their product vision into a successful reality.
As more and more companies seek to capitalize on the massive market opportunity for medtech, the competition grows increasingly fierce. If you’re gearing up to develop a new product, here are some things you need to consider.
Regulatory and Supply Chain Challenges
Ongoing trade tensions with China have heightened regional protectionism and spurred regulatory changes for security-sensitive and critical components. Depending on the type of product in question, many companies will need to identify alternatives to China-based suppliers. Pivot’s Philippines facilities, 320,000 square feet of tri-continental manufacturing, and global sourcing network help companies overcome supply chain challenges and achieve regulatory compliance.
DFM to Control Costs and Drive Innovation
DFM starts with the idea that product design must be guided by manufacturing considerations and optimized accordingly. DFM exists for essentially two reasons. First, it ensures that a design is not only functional, user-friendly, and aesthetically pleasing but also that it can be cost-effectively manufactured at scale. Second (and perhaps more surprisingly), it drives innovation. It does this by forcing designers to devise novel solutions to problems that only appear in light of manufacturing limitations. In an increasingly crowded market, the premium placed on innovative product differentiation has never been higher. At Pivot, our in-house, world-class DFM makes the winning difference between a product that fails to stand out and one that leads the pack.
Agility to Rapidly Respond to Fluctuating Demand
While the market opportunity for telehealth and other medtech innovations is enormous, market volatility can create unpredictable fluctuations in demand. As a result, companies need the agility to scale manufacturing volume. Pivot allows its partners to ramp up production as demand surges and dial it down as demand wanes. Pivot also enables its partners to flexibly shift production between large and small lots sizes and even between continents to better serve their distribution needs.
Ability to Seize Adjacent Opportunities
Medtech and telehealth necessarily share areas of overlap with other markets, including wellness, personal fitness training, sports training, and more. The pandemic has not only accelerated telehealth adoption but has also catalyzed market demand for remote solutions in these adjacent markets. Companies with their ear to the ground and an appetite for innovation can often adapt or extend a product intended for one market into several others. At Pivot, our expertise spans fourteen industries, including sports and fitness, allowing us to help companies identify and capitalize on opportunities in adjacent markets.
With nearly fifty years of expertise in end-to-end product development, we can help you take your product from proof-of-concept to manufacturing and distribution. We are proud to hold FDA-registration and multiple ISE and ISO certifications (ISO 9001:2015, ISO 13485:2016, ISO 80079-34, and IEC 60601-1) ensure strict quality control and regulatory adherence. Contact us today to learn more about how we can help you capitalize on the medtech market.