- ECONOMIC IMPACT -

Latest update: 22 November

According to the OECD, the unemployment rate in OECD nations stood at 5.8% in September 2021, down from 6% in August 2021. The unemployment rate among G7 nations declined from 5.1% in August 2021 to 4.9% in September 2021.

Real GDP in the UK expanded by 1.3% during July September 2021, a slowdown from 5.5% growth recorded in the previous quarter. Monthly GDP rose by 0.6% in September 2021 as compared to 0.2% growth recorded in August 2021.

4.9%

China’s real GDP growth rate slowed down to 4.9% (YoY) in Q 3 2021 as compared to 7.9% growth recorded in the previous quarter, according to the National Bureau of Statistics.

1.3%

Real GDP in the UK expanded by 1.3.% during July-September 2021 a slowdown from the 5.5% growth recorded in the previous quarter.

ECONOMIC RECOVERY

- SECTOR IMPACT: MEDICAL DEVICES -

Latest update: 03 November

-28%

GlobalData estimates that the overall revenues of dental devices declined by 28% in 2020 compared to 2019. This represents a loss of $5bn in missed revenue.

$5.7bn

After sharply contracting to $4bn in 2020, GlobalData found the neuromodulation market bounced back to $5.7bn in 2021 after restrictions on non-essential surgeries were relaxed in the major markets.

Medical value chain impact

Short and medium-term impact

Developers of Covid-19 interventions could thrive; the bulk of the industry will be challenged with supply chain interruptions, and limited procedures. Sales will begin to recover once supply chains and procedures are not disrupted. Healthcare providers will continue to struggle with providing adequate patient care as long as a shortage in any aspect of patient care is deficient.


Long-term impact

The need for medical devices will grow above pre-Covid-19 levels due to the increased number of procedures to catch up the delay. In some cases, not all missed procedures will be caught up. Sales volumes will increase as devices are sold to make up for the lack of procedures in early 2020. The healthcare system will remain overburdened by the number of procedures that are required post-Covid-19, but providers will not be overburdened.

Key Medical device market developments

Hospital supplies


Early in the Covid-19 crisis, medical device supply chains were hit hard, demonstrated by the global scramble for personal protective equipment. Supply chain issues have limited source material shortages resulting in reduced margins. As global economies recover, there is likely to be an intensification of supply chain pressures.


Diagnostic imaging devices


In October 2021, it was announced that Fujifilm India has partnered with Sakra World Hospital in order to establish new software powered by AI that is able to assist doctors in diagnosing the possibility of pneumonia among Covid-19 patients.


General surgery devices


GlobalData expects the growing volatility in the supply chain of critical components like semiconductors and capacitors to increase costs and uncertainty in the development and sales of all robotic assisted surgery (RAS) systems. Stabilisation of the supply chain for such components and the regulatory approval decisions of new RAS systems are among the key indicators for the continued rapid growth of this market and its competitive dynamics. Johnson & Johnson, for instance, reported delays in the Ottava RAS system rollout due to supply chain pressures.

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