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Landscaping Service Opportunities in the US Medical Devices Sector

  • October 2015
  • -
  • Frost & Sullivan
  • -
  • 82 pages

Summary

Table of Contents

Building Sustainable Capabilities in the Changing Landscape

The medical device sector is in a transitional period where stakeholders are seeking to concurrently enact seemingly contradictory measures of improving quality of care while reducing the cost burden of that care. The key to achieving these goals includes developing strategies towards operational efficiency. This research service evaluates the current unmet needs and the need for different services opportunities in the medical device sector, followed with strategies and recommendations.

Executive Summary—Key Findings

Landscaping Service Opportunities in the Medical Devices Sector: Key Takeaways, US, 2015

1 The medical device sector is rapidly growing and is an intensely competitive market with the need for new technologies, extensive research and developments (R&D), and advancements in manufacturing and service offerings and capabilities.

2 The pricing pressures, stringent regulatory norms, and % medical device excise tax, coupled with product innovation pressures, has forced medical device companies to redefine their business models and emphasize more on service capabilities (both internal and external) to bring in more value and improved outcomes.

3 The medical device sector is in a transitional period where stakeholders are seeking to concurrently enact seemingly contradictory measures of improving quality of care while also reducing the cost burden of that care. Key to achieving those goals are strategies towards operational efficiency.

4 Several companies are uniquely positioned to help facilitate those transitions through existing and potential future service offerings. Additionally, Frost & Sullivan has identified certain service areas, where the original equipment manufacturers (OEMs) need to acquire or align those servicing capabilities to ensure a smoother transition.

5 The medical device manufacturers are now focused on leveraging their service offerings that can help lower costs, increase agility, manage risks, shorten regulatory validation time, reduce time-to-market, improve service delivery, and thus enhance return on investment (ROI).

6 The OEMs are expanding their supply chain management capabilities in an effort to offer end-to-end, full-service offerings that include packaging, contract sterilization, procurement management, and sales models, among others, to maximize customer value and achieve a sustainable competitive advantage.

7 The medical device manufacturers are broadening their focus and expanding their end-to-end service offerings to order to remain competitive.

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