Medical device markets to ride out economic crisis

23 October 2008

Medical technology markets are resilient in times of economic downturn, providing shelter for investors worrying about drops in other, more volatile industries, according to Millennium Research Group (MRG) in its recently released Q4 2008 issues of its Industry Quarterly (IQ) publications.

MRG's reports highlight the most recent trends and events in the cardiovascular, endoscopy, orthopedics, aesthetics, and imaging and health IT industries. According to MRG IQs, while medtech markets are not recession-proof, their outlook is good.

Although the numerous segments of the global medical device markets are affected by diverse factors, one element that unites medical technologies is the importance of the US market to each segment's revenue generation.

With the US economy facing its worst financial crisis since the Great Depression, industry players and investors are worrying about the stability of the medical technology markets. In the past, medical markets have shown more resilience than other sectors in the face of economic downturn.

Nevertheless, questions still remain: how important are consumer confidence levels to the success of medical devices that, for the most part, are necessary treatments? How will frightened medtech investors react to global financial instability?

The answers to these questions lie in an examination of current medtech markets and an analysis of opportunities and threats. While markets tied to elective procedures, such as aesthetic and dental device markets, are more vulnerable than others, the overall long-term outlook remains positive for the medtech sector.

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