Four MedTech Trends to Watch in 2023
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Research made by Cyborgcare
Four MedTech Trends to Watch in 2023
The MedTech industry is entering a brave new world at the dawn of 2023 — one filled with unknowns such as staffing shortages, energy market disruptions, and rising interest rates. But this pandemic era also presents a unique opportunity for growth. To turn crisis into triumph and make the most of each moment, players in MedTech must stay ahead of the curve and look to foresee what trends will come after COVID-19. This means displaying both a keen astuteness to adapt to any situation coupled with a shrewdness to pinpoint developments that will shape the future of the field. Only then can innovators ensure that their strategies are adequate to sustain their business in an unforgiving global environment.
Deglobalization and reshoring are gaining traction and affecting the MedTech industry across the whole value chain
Globalization is, by and large, an important factor in economic development and prosperity. This is exemplified in the global trade-to-GDP ratio as measured by the World Bank, which decreased from 61% to 52% between 2008 and 2020. Such a trend signals a worrying state of affairs brought about by numerous causes, such as the trade restrictions imposed between the United States and China, the health crisis caused by COVID-19, and the Russia-Ukraine conflict. As a result of these events, governments all around the world have been reminded of just how vital it is to maintain diverse supplier networks and ample stocks of key raw materials — something that was made painfully clear when various economies across the globe were unable to access necessary goods during this tumultuous period.
The MedTech investment downturn will manifest itself differently in various regions of the globe.
In a post-pandemic MedTech landscape, many regions globally are bracing for the combined impacts of a significant drop in M&A deals, capital raised, and R&D investments. This “new normal” will have varying effects depending on the geography; however, what remains the same is that MedTech firms must take action to stay agile, innovative, and attractive as investors. By leveraging collaborative opportunities such as cross-sector alliances and working hand-in-hand with universities and research institutions, companies can ensure that their products excel and lessen the economic toll. Despite today’s economic headwinds in the MedTech industry, it is still possible for these organizations to achieve success — it simply requires ingenuity and an astute view of what lies ahead.
Direct-to-consumer (DTC) advertising for MedTech has proven it's worth and will grow as a tool to drive adoption — especially for devices that patients interact with directly or that compete with pharmaceuticals.
The direct-to-consumer (DTC) advertising of medical devices gained unprecedented visibility in 2022. Abbott Laboratories made waves when they delivered the first healthcare keynote at the Consumer Electronics Show, followed by Cue Health and Hologic airing national-level TV commercials during Super Bowl LVI. The trend didn’t stop there — medical device maker Insulet spread its message even further by running campaigns across the UK, Germany, and Canada. This just goes to show that DtC advertising plays an important role in driving the adoption of devices that consumers directly use, such as insulin pumps, continuous glucose monitors, oxygen concentrators, dental tools, and even diagnostics people can do from home.
The expanding scope of the volume-based procurement (VBP) policy will continue to have disruptive impacts on MedTech players’ business in China.
Driven by the pull of value-based pricing, healthcare authorities and MedTech players have seen cost savings of up to 90%; however, a recent analysis conducted by IQVIA shows that in the initial stages of transitioning towards value-based pricing, 50–60% of certain product categories were eliminated due to brands being unable to sustain the price drop across extended periods. To restore balance and ensure market stability, a moderate increase in prices can be expected with upcoming rounds of value-based pricing that includes existing as well as newly introduced products. It remains to be seen whether this correction will help bring greater returns or leave players with little room for growth in an already tough economic climate.
Conclusion
Healthcare is on the brink of a revolution fueled by cutting-edge MedTech trends. In 2023 alone, we can expect to see exciting developments in AI and digital health, personalized medicine, precision diagnostics — and beyond! It begs us to ask: what other groundbreaking advancements are just around the corner?
