Medical semiconductor market vitality

According to the latest report of IC Insights, a market research organization, medical electronics products will resume strong growth in the next three years after experiencing the slow growth of the global economy and the control of medical costs in the United States and Europe since 2010. The report predicts that sales of medical electronics products will continue to grow by 8% in 2014 to reach 50.9 billion U.S. dollars. Semiconductor sales for medical systems increased to US$4.9 billion in 2014, a growth rate of up to 12%.

From 2012 to 2017, global sales of medical electronics products are expected to increase to 6.5 billion US dollars at a compound annual growth rate (CAGR) of 7.3%. The semiconductor sales for medical device systems will grow at a compound annual growth rate of 10.5% to US$6.8 billion.

Medical Semiconductor Market Forecast

In the next few years, the market for medical electronic products will grow strongly thanks to the popularity of low-cost diagnostic and imaging equipment in China and other developing countries, and the promotion of wireless mobile medical systems for remotely monitoring patients and reducing hospitalization costs. In 2014, revenues from wireless mobile healthcare systems and wearable fitness tracking devices are expected to jump 53% from $1.2 billion this year to nearly $1.9 billion, while global sales will increase by 27%.

In order to respond to poverty and the low cost and practical requirements of medical equipment in developing countries, equipment manufacturers face two different development trends in hospitals, clinics, and doctors' offices. One of the trends is to create smaller, cheaper medical diagnostic systems for use in hospital wards, clinics, and doctors' offices than in the hospital's examination and imaging centers. Advanced sensors (MEMS-based), wireless ICs, and system-on-chip (SoC) designs have created new types of mobile medical devices that can monitor patients and elderly people at home and then transmit the information via a wireless connection to a cell phone or the Internet. Give to a doctor or hospital.

Another trend is to create a more powerful integrated system. Although it is expensive, there are ways to reduce medical costs, such as early detection of cancer and diseases, while supporting the rapid recovery of minimally invasive surgery and shortening hospital stay. New technologies such as computer-assisted surgical systems, surgical robots, and operating room automation are used by hospitals in some developed countries.

Although the population of developed countries (such as the United States, Europe, and Japan) only accounted for 18% of the world's population, the health expenditures of these countries reached US$5.3 billion in 2012, accounting for 80% of the world's total, compared to 178 other developing countries. Medical expenses in poor countries are only $1.4 billion. Older age groups in both developed and developing countries will benefit greatly from new wireless health monitoring systems and telemedicine services, with the aim of reducing costs and serving more patients. Although sales of medical equipment in large mature markets have been sluggish in recent years, it has been thriving in China, thanks to its plan to substantially increase primary health care, hospitals, medical infrastructure and medical service windows in rural areas. During this 10-year period, China’s investment in healthcare infrastructure will reach US$63.5 billion. Therefore, in the next four years, China’s share of global medical equipment sales will more than triple and reach 10% by 2017. In contrast, this figure was only 3% in 2013. At the same time, the market share of developed countries will shrink.