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 association’s latest infographic, “Pharmaceutical and Medical Device Market Trends.”
“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,” says Paula Feldman, director, Business Intelligence, PMMI.
U.S. shipments for the pharmaceutical market accounted for 70 percent of the sector, while medical devices made up 30 percent. 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 Manufacturers have outdated equipment that needs replacing now or in the very near future.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.
As the infographic shows, global medicine use is expected to reach 4.5 trillion doses by 2020, up 24 percent 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.
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View the infographic here