Medical Device Daily National Editor

The business of providing products for healthcare is big — and getting bigger, according to consulting firm Frost & Sullivan (F&S; Palo Alto, California).

The Medical Devices Group of F&S said during a quarterly analyst briefing Wednesday afternoon that the U.S. medical device industry is on a growth path spurred by demographics and development of new technologies, but tempered by efforts at cost containment on both the policy and practical levels.

F&S Research Analyst Archana Swathy referred to med-tech as “one of the most dynamic sectors of the U.S economy.”

She outlined the outlook for a wide range of medical-device sectors, with slides citing annual revenues over a several-year period, projected out to 2013.

Swathy also took a look at the industry in 2015 and beyond, calling for greater focus on minimally invasive surgery, concentrated efforts on minimizing hospital stays, development of a broad range of innovative technologies, growth in disposable products and, most of all, “integration and synergy of technologies.”

Here’s a thumbnail look at the 14 industry sectors covered by Swathy in her presentation:

Cardiovascular. ‘This is the largest and most robust of all the fields, with the majority of sector revenues generated by ICDs [implantable cardioverter-defibrillators] and percutaneous interventional products.”

An accompanying slide indicated sector revenues in the range of $25 billion are anticipated in 2008.

Orthopedics. “Treatment for orthopedic implants is expected to be skewed more and more toward minimally invasive procedures, while motion preservation technologies are expected to revolutionize spinal surgery markets.”

The U.S. market clearly is the dominant geographic sector when it comes to spending on orthopedic procedures, with Swathy saying it accounts for 59% of total global spending on musculoskeletal activities.

It’s a market being driven — and hard — by the demographics of larger numbers of people who are both living longer and demanding to be able to remain active at a later age. An accompanying slide indicated expectations of the market growing to $29 billion by 2013.

General surgery. “There’s a rapid expansion of minimally invasive trends in bariatric and pediatric surgery, increasing the potential for growth of this sector. Technological developments in image guidance, visualization, robotics and fiber optics are driving this field.”

Endoscopy. “More than 10 million gastrointestinal endoscopic procedures are performed annually in the U.S. Video endoscopy is strengthening the growth of the entire endoscopy market.”

This market amounted to an estimated $300 million-plus in revenues in 2007, with an annual growth rate of about 12.5% and forecasted revenues of around $650 million by 2013.

Neurology. “Stroke is the third-leading cause of death in the U.S., affecting about 5.7 million people. There is an increasing preference for minimally invasive procedures, and favorable demographics, all of which is contributing to development of the sector.”

Revenues as of 2006 stood at $2.3 billion, estimated to grow to $7.5 billion in 2013.

Urology & gynecology. “Increasing awareness of BPH [benign prostatic hyperplasia] as a treatable condition is expected to fuel growth of this sector. The minimally invasive nature of urology and gynecology-related procedures has led to established and stable success rates.”

Sector revenues in 2007 were an estimated $2.5 billion, with growth anticipated to just under $5 billion in 2013.

Ophthalmology. “Some 2.9 million cataract surgery procedures are performed in the U.S. annually. Another driver of this sector is silicone hydrogel contact lenses, which offer better comfort.”

Revenues were estimated at about $9.5 billion in 2007, with growth to $14 billion anticipated by 2013.

Cosmetics and aesthetics. “Soft-tissue augmentation products offer a minimally invasive option that is helping this sector grow substantially. HA-based dermal fillers are promising, and advanced visualization systems advance the delivery of treatment.”

Revenues in the sector were pegged at about $1.2 billion in 2006, with an estimated jump to $1.5 billion in 2007 and a projection of $3 billion-plus by 2013.

Hearing & audiology. “Hearing loss in children is believed to be under-reported. The advent of modular systems provides hospitals with a variety of choices of equipment. Open-fit hearing instruments also are impacting sector growth.”

Estimated revenues of $5 billion in 2007, forecast to grow to $6 billion-plus by 2013.

Wound care. “Manufacturers are creating hybrid products by combining two or more composites. There is a vital need to provide clinical data, especially with the newer products in this sector. And the growth of absorbable sutures is shifting the sutures market.”

Sector revenues totaled $5.6 billion in 2006, with a 7% annual growth rate spurring an increase to $9 billion in 2013.

Respiratory & anesthesia. “The number of surgeries in this area has increased substantially, fueled by advances in minimally invasive techniques. Timely revisions and upgrades in anesthesia standards have propelled the interest in new technologies.”

Revenues were estimated at $1.5 billion for 2007, growing to $2.2 billion in 2013 on a 5.5% annual growth rate.

Infusion systems. “Some 4 million to 5 million home infusion pumps are sold annually, with the market expanding with the aging population.”

This sector had $2.2 billion in revenues in 2006, predicted to grow to $3.2 billion by 2013.

Mobility aids. A $2 billion sector in 2006, forecast to grow to $3.4 billion by 2013.

Disinfection & sterilization. “Products that provide faster and safer sterilization and disinfection will drive growth here. It’s a fairly mature market, totaling about $280 million in 2006 and expected to grow to $360 million in 2013.”