Lucrative medical device market remains untapped by materials suppliers
Lucrative medical device market remains untapped by materials suppliers
The European medical device manufacturing industry represents a very lucrative market, yet one that has not yet been fully capitalised on by materials suppliers. This is according to a new independent research commissioned by the organisers of the Medical Device Technology Exhibition and Conference.
The findings from the study of 150 European medical device manufacturers show that this market, which is already worth an estimated 55 billion Euro(Source: Eucomed), is optimistic about future development and is looking to develop new products.
What is more, they are keen to find suppliers to help advance their ambitious growth plans. More than two-thirds (69 per cent) will be purchasing materials products over the next 12 months. However, a third of the sample reports that many supply sectors fail to recognise the significant potential of the market. More than half state that they are interested in seeing new suppliers and an equal number (29 per cent) specifically want to see new materials and components suppliers – in fact, these are the areas that were quoted most frequently by respondents.
Future purchasing behaviour and budget allocations also indicate that supplier opportunities are considerable. Over the next 12 months, 43 per cent of the European manufacturers and 51 per cent of those based in the UK say that their expenditure on materials will increase. Only a minority (9 per cent)predicts a decrease. As one of Europe's key manufacturing growth areas and with competition fierce, this industry sector is driven by innovation. However, more than a third (37.3 per cent) feel that a lack of innovation is blocking the industry and are looking for more inventive solutions from their materials suppliers. Nearly half (47 per cent) state that more innovation from materials suppliers would be of benefit to them. The study suggests that UK suppliers are well-placed to capitalise on the increasing revenue opportunity presented by this sector as almost a quarter (23 per cent) of European manufacturers currently source most of their products and services from the UK. However it also warns that, unless UK suppliers meet the demands of this industry, much of the business this growing sector could deliver may go abroad.
