Healthcare has always been an area of utmost importance. It has significant economic relevance and has been allocated a higher percent of gross domestic product (GDP) in many countries compared to most other sectors such as transport and communication, construction and education. Healthcare also has a huge impact on employment, for the fact that most related activities are provided by people.
New analysis from Frost & Sullivan (http://www.medicaldevices.frost.com), Key Trends and Indicators in European Healthcare Markets, studies the healthcare market in Europe and provides insights and analysis up to 2014. For instance, it covers the extent of unemployment in Europe so that healthcare employers can understand the existing market scenario and take advantage of it.
"There are a number of political, economic, sociological, and technological market forces which are currently influencing the European healthcare market on the whole," says Frost & Sullivan Research Analyst Sree Vidhya Praveen. "A combination of these forces produces a few general market opportunities and threats for product manufacturers and it is vital that medical product suppliers have an understanding of these factors to optimise opportunities and address challenges."
The demographic and economic indicators covered in this study focus on the healthcare spending percent of GDP, population analysis and fertility rates. The health status section discusses trends for obesity, alcohol consumption, along with the prevalence of cancer, AIDS and diabetes.
"Despite the significant GDP allocation, macroeconomic factors, such as aging populations and insufficient public funding are challenging both payers and providers," explains Praveen. "Therefore, participants wanting to succeed in this new market environment should redefine and adapt their business models accordingly."
Governments across the world face the challenge of facilitating the adoption of medical devices while ensuring their affordability. Governments have the responsibility to balance the technological adoption and affordability, thus creating a favourable market environment for medical devices according to the unique features of each country.
Further, policy tools that encourage technological adoption tend to show a strong preference for a particular technology over others. Such tools should be used carefully, say on a trial basis, during the early stages of technological diffusion as the benefits of a new technology are often difficult to predict and can lead to market distortions and a sharp rise in expenditures.
"Market participants should increase their product portfolio by acquiring smaller companies with innovative products," concludes Praveen. "Additionally, market presence should be expanded in the untapped markets."
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