Thriving German medtech ready for medical revolution
The association that represents Germany's medical technology companies, BVMed, is predicting that the medtech sector will continue growing. It cites experts forecasting an annual growth rate of four to five percent. This is according to the BVMed Annual Report 2018/19, which is based on a survey of the association's members.
The report underscores the importance of the medical technology sector within the German healthcare industry and economy. It says German medtech remains a job motor and a significant contributor to national income.
The survey notes that Germany's medical product manufacturers account for around 140 thousand jobs in 1300 companies with staff sizes of greater than twenty. At the same time, small and medium sized enterprises (SME) predominate in German medtech, with more than 11 thousand small companies employing an additional 60 thousand workers. BVMed reports that 93 percent of all German medical technology companies employ fewer than 250 people, which further emphasizes the dominance of SMEs.
BVMed cites German government statistics showing that med tech producers with more than twenty employees had turnovers of nearly EUR 30 billion in 2017. Exports dominate the industry, with 65 percent of what the sector produces being sold abroad. BVMed notes that Germany is also Europe's major player in global medtech saying that, "The German medtech market is about twice as large as the French and three times as large as the British or Italian market."
Experts are optimistic about the future, reports BVMed. Forecasts indicate that demographic developments, advances in medical technology, and the economic dynamism of newly industrialized and developing countries will feed into an annual growth rate for German medical technology of about four percent to five percent.
At the same time, digital medicine is revolutionizing the healthcare industry. At MEDICA in November, a study showed that digitization could result in German medical technology manufacturers alone creating as many as 10 thousand jobs. It also predicted new digital products could generate sector turnovers of up to EUR 15 billion in the next decade.
The Export Initiative for the German Healthcare Industry, HEALTH MADE IN GERMANY, has published a sector profile that presents key facts about Germany's medical technology industry. It is available for download below.