Digital trends are transforming every industry, irrespective of size and financial strength. The healthcare industry has always been at the forefront of adopting every new technology for advanced next-generation healthcare service delivery. The result is what we see today as the MedTech industry!
As the reports say, digital transformation strategy (DX) is changing how healthcare services are delivered and eventually shaping the fortunes of MedTech companies. Digital transformation in the MedTech industry aims at two core objectives: improving service continuity in patient care and improving the efficiency of MedTech companies’ internal operations.
The DX trend is driving these two objectives and positively impacting the performance of MedTech companies in terms of operating margins and overall revenue generation.
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Digital Transformation of the MedTech Industry
According to the renowned market research firm Frost & Sullivan, digital transformation initiatives are expected to generate USD 241 billion in revenue for the MedTech industry, contributing to its rise at a CAGR of 6.3% during the 2018-2024 period.
“The availability of digital solutions such as analytics, AI, and augmented or virtual reality is having a huge impact on several aspects of internal operations in the MedTech industry, including manufacturing, and on external areas of care delivery,” says Siddharth Shah, Program Manager of Transformational Health at Frost & Sullivan.
This transformation will result in the emergence of advanced opportunities, such as gamification, patient engagement, device data analytics, and medical device cybersecurity, that will fuel the industry’s future growth.
According to the research, North American and European markets are more mature regarding technological sophistication, regulatory support, and investment in adopting digital transformation solutions.
The Asia-Pacific and Latin American markets are ready to adopt such solutions.
North America, Europe and Asia-Pacific together account for 89% percent of the overall opportunities for the MedTech digital transformation solutions, globally.
“While widespread adoption of the digital solutions remains a challenge, it is expected to improve significantly, driven by demand from users of the tech-savvy generation and a rising pressure within the industry to improve margins and efficiency,” noted Shah.
“Some pioneering health systems are already seeing returns on investment from implementing their digital solutions, making their future receptivity to MedTech solutions positive. Support from regulatory bodies will only help further this goal,” he adds.
According to Frost & Sullivan, MedTech companies willing to enjoy the DX advantage should ideally focus on:
- Make partnerships that help get patient care insights and scope to explore growth opportunities
- Invest in patientcare-centric cost-effective solutions
- Switch from a one-time device sales model to the predictable subscription-based revenue stream and break down bulk capital expenses into smaller, affordable operational costs.
- Implement innovative solutions that make some difference in improving brand loyalty.
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