PMMI, The Association for Packaging and Processing Technologies, reports that the market for pharmaceuticals and medical devices continues to grow. In total, the 2015 pharmaceutical industry produced $1.1 trillion in global sales with medical devices reaching $350 billion.
PMMI explores the global expansion of the pharmaceutical and medical device market, including the impact of mergers and acquisitions in the associations’ latest infographic, “Pharmaceutical and Medical Device Market Trends.”
“With such significant industry growth, now is the time to invest in new technologies to improve operations and get prepared for more growth ahead,” said Paula Feldman, director, business intelligence, PMMI. “With two out of three companies predicting an increase in capital equipment over the next one to two years, the U.S. remains the largest market for pharmaceuticals and medical devices and there are great opportunities for OEMs in both segments.”
U.S. shipments for the pharmaceutical market accounted for 70% of the sector, while medical devices made up 30%. Legacy lines are driving equipment change. Manufacturers have outdated equipment that needs replacing now or in the very near future. Branded and specialty drugs and innovative medical devices will likely drive spending growth in the developed markets, while an overall increase in the use of pharmaceuticals and medical devices will likely spur growth in emerging markets.
An aging population, longer life expectancy and a general increase in rare or chronic diseases is impacting healthcare worldwide. As the infographic shows, global medicine use is expected to reach 4.5 trillion doses by 2020, up 24% from 2015, emphasizing the opportunity in this market segment.
Industry consolidation continues to change the landscape of this sector.
Mergers and acquisitions have seen double-digit growth in the past three years and remain a major component of strategic growth. Larger players are establishing strategic partnerships with smaller niche companies to increase the scope of product offerings and often to establish a foothold in offshore markets.
For more detailed information on pharmaceutical and medical device industry trends including a look at trends in technology, equipment procurement, regulations and standards and the impact on manufacturing download PMMI’s 2016 Pharmaceutical and Medical Device Report.