Arab Health 2020 Sectorization

U.S. medical device companies are highly regarded globally for their innovations and high-technology products. Investment in medical device research and development more than doubled in recent decades, and research and development investment in the domestic sector remains more than twice the average for all U.S. manufacturers. Noteworthy is the fact that the United States is home to 141 accredited medical schools and approximately 400 major teaching hospitals and health systems, many of which rank among the best in the world. Many of these academic institutions collaborate with medical device companies to develop new medical technologies.

Encouraging and fostering U.S.-based healthcare industries is critical to the future of the U.S. economy, which is why medical technology is a National Export Initiative priority.

Besides leading the world in the production of medical devices, the United States is the largest medical devices consumer. The United States medical device market is valued at more than $140 billion in 2015, which accounts for approximately 45 percent of the global market according to the U.S. Government Accountability Office’s (GAO) 2014 statistics. U.S. exports of medical devices were valued at approximately $45 billion in 2015, and imports were valued at $54 billion.

The U.S. medical device industry is highly diversified and produces a variety of products to diagnose and treat patients, ranging from tongue depressors to complex programmable pacemakers. The United States medical devices industry is known for producing high quality products using advanced technology resulting from significant investment in research and development. During the last decade, the United States medical device industry experienced unprecedented advancement in innovative and developed technologies, leading to the birth of new therapies and growth in overall healthcare industry.

Size and Shape of the U.S. Medical Devices Industry

For purposes of estimating of the size and shape of the U.S. medical devices industry, the U.S. Census Bureau (Census) uses the North American Industry Classification System (NAICS) codes.

• In-vitro diagnostic substances (NAICS 325413) account for about 14 percent of value of shipment (VOS) of total exports and includes chemical, biological or radioactive substances used for diagnostic tests performed in test tubes, Petri dishes, machines and other diagnostic test-type devices.
• Electro-medical equipment (NAICS 334510) represents the third largest subsector (17 percent of VOS) and accounts for a variety of powered devices, including pacemakers, patient-monitoring systems, MRI machines, diagnostic imaging equipment (including informatics equipment) and ultrasonic scanning devices.
• Irradiation apparatus (NAICS 334517); about 8 percent of VOS) includes X-ray devices and other diagnostic imaging as well as computed tomography equipment (CT).
• Surgical and medical instruments (NAICS 339112) comprises the largest subgroup (about 29 percent of VOS) of the U.S. medical device industry. The category includes anesthesia apparatus, orthopedic instruments, optical diagnostic apparatus, blood transfusion devices, syringes, hypodermic needles and catheters.
• Surgical appliances and supplies (NAICS 339113) is the second largest U.S. medical device subsector with about 22 percent of the total measured by VOS. The category covers a wide range of products, including artificial joints and limbs, stents, orthopedic appliances, surgical dressings, disposable surgical drapes, hydrotherapy appliances, surgical kits, rubber medical and surgical gloves, and wheelchairs.
• Dental equipment and supplies (NAIC 339114; 3 percent of VOS) consists of equipment, instruments and supplies used by dentists, dental hygienists and laboratories. Specific products include dental hand instruments, plaster, drills, amalgams, cements, sterilizers and dental chairs.
• Ophthalmic goods (NAIC 339115; 6 percent of VOS) includes eyeglass frames, lenses and related optical and magnification products.

In 2015, the total value of U.S. industry shipments for the products covered by the NAICS categories identified above was worth $43 billion and, in recent years, has experienced approximately 1.5 percent annual growth.

OPPORTUNITIES:

The U.A.E. healthcare sector is expanding rapidly to meet both the evolving needs of a growing population and the nation’s ambition to become a regional medical tourism hub. This rapid expansion is challenging the ability of the U.A.E. to both provide adequate medical personnel and contain costs. However, U.A.E. government entities have adopted a series of long-term initiatives, in particular the U.A.E.’s Vision 2021, to address these challenges and guide the sustainable growth of this sector.

The region also offers opportunities in the medical equipment sectors. U.S. companies will find the U.A.E. a ripe market for exports and a growing market for medical equipment sales; one in which they can potentially sign agreements to install and service their own medical devices (GE Healthcare).

Due to aging of population and the increasing number of patients with chronic and life-style diseases, medical devices that alleviate pain, complement lost functions, and improve the quality of life should show steady growth in demand.

Focus towards miniaturization of medical devices allowing more minimally-invasive and non-invasive procedures .

Cardiovascular devices are another important segment of the U.A.E. medical device market, especially given the increasing incidence of cardiovascular disease due to sedentary lifestyles and obesity. This market is principally centered on interventional cardiology and cardiac rhythm management. Many of the key players in this segment also have significant U.A.E. operations.

• Abbott: Dubai serves as a regional headquarters for Abbott, which is one of the world’s leading healthcare companies in medical devices as well as nutrition, pharmaceuticals, and diagnostics.
• Abbott’s acquisition of St. Jude Medical created a combined company with best-in-class solutions across the areas of cardiovascular and neuromodulation
• Medtronic: Dubai is the home for Medtronic’s headquarters for the Middle East & Africa, Central Asia & Turkey (MEACAT). These markets comprise 1,400 Medtronic professionals and produce approximately $1 billion in revenue
• Medtronic is world renowned for its wide array of cardiac and vascular products
• Johnson & Johnson: Dubai is the home of Johnson & Johnson Middle East FZ-LLC, which oversees the regional production of a broad range of products used primarily by healthcare professionals in the fields of cardiovascular disease as well as orthopedics, neurovascular, surgery, vision care, diabetes care, infection prevention, diagnostics, sports medicine, and aesthetics

The Global Disposable Medical Supplies market was valued at $48,630 million in 2016 and is expected to reach $80.2 Billion by 2023, growing at a rate of 7.3% (2017-2023).

It is a competitive market, but North America dominated the disposable medical supplies market in 2016 and is expected to retain its dominance throughout the forecast period. This is attributed to the sophisticated infrastructure and huge investment by the government to upgrade the healthcare facilities across the region.

Disposable medical supplies consist of medical apparatuses, devices, or consumables that are intended for one time or temporary use in medical settings. These supplies are an essential component in hospital settings, as they save staff time and reduce healthcare-associated costs. Examples of disposables medical supplies include bandages & wraps, drug tests disposables, exam gowns, face masks, gloves, suction catheters, surgical sponges, hypodermic needles, syringes, and applicators among others.

The major factors that drive the market growth:

• Increase in demand for disposable medical supplies to avoid contamination and hospital-acquired infections
• Rise in incidence of diseases worldwide
• Increase in robot-assisted surgeries is expected to create numerous opportunities, as robotic surgeries utilize disposables such as syringes, needles, scissors, scapula, and others
• Rise in cardiovascular diseases globally accounts for the majority of the market share landing in the cardiovascular segment (two-ninths share of the total market in 2016). According to the World Health Organization, an estimated 17.7 million people died from CVDs (cardiovascular diseases) in 2015, which represents 31% of total global deaths.
• Other applications include cardiovascular, cerebrovascular, ophthalmology, gynecology, urology, and orthopedics

Segments: Diagnostic supplies, dialysis consumables, radiology consumables, infusion products, intubation & ventilation supplies, hypodermic products, sterilization consumables, nonwoven medical supplies, wound care consumables, and other medical supplies.

In particular nonwoven medical supplies is expected to be the lucrative segment during the forecast period, owing to their wide usage in the healthcare settings. These supplies consist of disposable products such as incontinence products and surgical nonwoven products that are consistently used across the healthcare settings.

Key players operating in the global disposable medical supplies market such as Abbott Laboratories, Becton, Dickinson, Cardinal Health Incorporated, Domtar Corporation, Medtronic, 3M Company, BarrierSafe Solutions International, Johnson & Johnson and Derma Sciences Incorporated.

• Increase in demand for disposable medical supplies to avoid contamination and hospital-acquired infections
• Rise in incidence of diseases worldwide
• Increase in robot-assisted surgeries is expected to create numerous opportunities, as robotic surgeries utilize disposables such as syringes, needles, scissors, scapula, and others.
• Rise in cardiovascular diseases globally accounts for the majority of the market share landing in the cardiovascular segment (two-ninths share of the total market in 2016). According to the World Health Organization, an estimated 17.7 million people died from CVDs (cardiovascular diseases) in 2015, which represents 31% of total global deaths.
• Other applications include cardiovascular, cerebrovascular, ophthalmology, gynecology, urology, and orthopedics.

Population growth and increased life expectancy, plus a rising incidence of non-communicable lifestyle diseases such as obesity and diabetes, is driving escalating demand for healthcare services in the region. If you have been keeping an eye on the U.A.E. healthcare market, consider this: In 2017, according to Business Monitor International, healthcare expenditures in the U.A.E. reached $17 billion and are expected to rise to $21.3 billion by 2021.

With the forecasted UAE healthcare market, government bodies are looking to the private sector and to public-private partnerships (PPPs) to realize the goal of providing world-class healthcare, one of the six pillars of the UAE’s National Agenda in its Vision 2021.

Private players are being incentivized through PPPs to invest in and manage operations, while the public sector acts as the regulator. Some examples: Dubai Health Authority (DHA) is planning a healthcare PPP program to establish radiology, cardiology and physiotherapy facilities across the city. In November 2018, DHA initiated the tendering process for a 110-bed Cardiac Centre of Excellence. The selected private sector entity will be responsible for designing, building, financing and operating the facility for a 25-year term.

PPPs are expected to increase in ambulatory care, home care, long-term stay and day-surgery centers, driven by the Dubai Health Authority strategy. The authority has entered into eight MoUs with private hospitals to exchange expertise with public hospitals to deliver quality healthcare.

The GCC has more than 700 healthcare projects worth Dh223.7 billion under various stages of development to meet the demand. [Alpen Capital]

85% of this is being spent on hospital projects and rest towards clinics and research centers.

As a result, U.A.E.’s healthcare sector and its partnerships with leading U.S. institutions have continued to develop:

• The U.A.E. Embassy in Washington, D.C. and Johns Hopkins Medicine announced a new institute for stroke research and clinical care: The Sheikh Khalifa Stroke Institute
• The U.A.E. Ambassador to the U.S. signed MOUs with several American hospitals:
  • The agreements will ensure enhanced medical care for designated patients and ongoing coordination between the American hospitals and their U.A.E. counterparts
  • American hospitals include:  Brigham and Women’s Hospital, Dana-Farber Cancer Institute, The Cleveland Clinic Foundation, University of Chicago Hospitals, Cincinnati Children’s Hospital Medical Center, Children’s Hospital of Philadelphia, Shirley Ryan AbilityLab, and Johns Hopkins Hospital

All of which have participated at Arab Health, an indicator of the show’s important to the region.

Medical tourism continues to be very much in demand. Attracting patients seeking treatment from across the globe, the U.A.E. has become a top location for higher-quality healthcare.

There is no better time to get involved in the U.A.E. And there is no better trade show in the world to get in front of the Ministry of Health and Prevention (MOHAP), Dubai Health Authority (DHA), and Abu Dhabi Health Services Company (SEHA), etc. than Arab Health.

Book your space today and join American Medical Association, Ann & Robert H. Lurie Children’s Hospital of Chicago, Inova Health, Mayo Clinic, Northwestern Medicine, and Shirley Ryan AbilityLab in the USA Partnership Pavilion!

The healthcare market in the UAE is expected to grow by over 8.5% between 2018 to 2023.
Demand for new facilities and technologies is higher than ever before.
UAE authorities recognize the need for providing healthcare that is in line with the region’s Vision 2030 and its pursuit of healthcare excellence through technology and national eHealth projects.

The rising demand for better healthcare services in the region and global advancements in medical technologies have opened up a number of opportunities for information technology (IT) organizations to tap into this growing sector.

Implementation of automation in healthcare is projected to bring out better healthcare facilities, improved efficiency, and increase healthcare delivery quality.

• Rising Labour Costs Driving a Need for Pharmacy Automation
• Rising Government Support for Medical Automation

UAE’s healthcare landscape is continuing to evolve, with a wave of initiatives and technological advancements helping to merge gaps technology as an enabler of positive progress and improvements in clinical efficiency, as well as making everyday life for patients much more convenient.

• Establishment of robotic pharmacies by the DHA
• First and only EOS imaging system in the UAE. This system is an extremely advanced orthopaedic imaging technology that gives doctors a clear 3D view of the patient’s musculoskeletal system and helps them make life-changing decisions regarding the patient’s treatment
• Robotic surgery is also becoming more prevalent in hospitals
• Connected devices has allowed doctors to treat diseases more effectively and make the patient experience more convenient
• Remote healthcare is in high demand and relevant to an increasingly sophisticated client base
• Home healthcare is outperforming traditional health service providers such as hospitals and clinics. More and more medical technologies are home-based, with remote monitoring through apps and home-based diagnostics, freeing up beds for more advanced cases.

HOSPITALS

Population growth and increased life expectancy, plus a rising incidence of non-communicable lifestyle diseases such as obesity and diabetes, is driving escalating demand for healthcare services in the GCC region.

With the UAE healthcare market forecast to grow to Dh102 billion in 2021 from an estimated Dh69.4 billion this year, government bodies are looking to the private sector and to public-private partnerships (PPPs) to realize the goal of providing world-class healthcare, one of the six pillars of the UAE’s National Agenda in its Vision 2021.

Private players are being incentivized through PPPs to invest in and manage operations, while the public sector acts as the regulator. These partnerships, which range from the development or upgrade of medical facilities and the supply of medical technologies, to consultancy services in clinical management and best practice guidelines, will allow the public sector to enhance its services, improve the management of its resources, and cut costs.

Some examples: Dubai Health Authority (DHA) is planning a healthcare PPP program to establish radiology, cardiology and physiotherapy facilities across the city. In November 2018, DHA initiated the tendering process for a 110-bed Cardiac Centre of Excellence. The selected private sector entity will be responsible for designing, building, financing and operating the facility for a 25-year term.

PPPs are expected to increase in ambulatory care, home care, long-term stay and day-surgery centers, driven by the Dubai Health Authority strategy. The authority has entered into eight MoUs with private hospitals to exchange expertise with public hospitals to deliver quality healthcare.

The GCC has more than 700 healthcare projects worth Dh223.7 billion under various stages of development to meet the demand.

85% of this is being spent on hospital projects and rest towards clinics and research centers.

Diagnostic imaging equipment comprises a large percentage of the U.A.E. medical device market. In fact, it is estimated that the diagnostic imaging equipment market here would reach $738 million by the end of 2020.

It is important to note that within this sector, there is a preference for products from brand-named international companies. Many of these companies establish Dubai as their regional headquarters.

Among the big American brand names here include GE Healthcare. GE Healthcare provides transformational medical technologies and services to meet the demand for increased access, enhanced quality, and more affordable healthcare around the world. From medical imaging, software & IT, patient monitoring, and diagnostics to drug discovery, biopharmaceutical manufacturing technologies, and performance improvement solutions, GE Healthcare helps medical professionals deliver great healthcare to their patients.

International names such as Siemens Healthineers, which is the separately managed healthcare business of Siemens and is a leading provider of medical imaging equipment, bases its Middle East regional office out of Dubai Healthcare City. In addition, Dubai serves as the Middle East headquarters for Philips Healthcare, which is also a global leader in health technology.

Medical software, telemedicine and e-health are sectors with a strong market potential. With the healthcare market in the UAE is expected to grow by over 8.5% between 2018 to 2023, the demand for new facilities and technologies is higher than ever before. UAE authorities recognize the need for providing healthcare that is in line with the region’s Vision 2030 and its pursuit of healthcare excellence through technology and national eHealth projects.

The rising demand for better healthcare services in the region and global advancements in medical technologies have opened up a number of opportunities for information technology (IT) organizations to tap into this growing sector.

Implementation of automation in healthcare is projected to bring out better healthcare facilities, improved efficiency, and increase healthcare delivery quality.

• Rising Labour Costs Driving a Need for Pharmacy Automation
• Rising Government Support for Medical Automation

UAE’s healthcare landscape is continuing to evolve, with a wave of initiatives and technological advancements closing gaps and enabling positive progress, improving efficiency, as well as making everyday life for patients much more convenient.

• Establishment of robotic pharmacies by the DHA
• First and only EOS imaging system in the UAE. This system is an extremely advanced orthopaedic imaging technology that gives doctors a clear 3D view of the patient’s musculoskeletal system and helps them make life-changing decisions regarding the patient’s treatment
• Robotic surgery is also becoming more prevalent in hospitals
• Connected devices has allowed doctors to treat diseases more effectively and make the patient experience more convenient
• Remote healthcare is in high demand and relevant to an increasingly sophisticated client base
• Home healthcare is outperforming traditional health service providers such as hospitals and clinics. More and more medical technologies are home-based, with remote monitoring through apps and home-based diagnostics, freeing up beds for more advanced cases.

The present tech-savvy generation has encouraged the use of innovative healthcare information technology such as visits, digitization of electronic medical records (EMR), data analytics, and mobile applications for patient engagement. The adoption of such technologies has the potential to improve the quality of care and reduce the cost substantially for both patients as well as providers The U.A.E.’s Healthcare Information Technology (IT) market is set to grow swiftly in the coming years. This growth is partly driven by government initiatives around the digitization of electronic medical records. For the past decade, the U.A.E. has been gradually implementing electronic health record (EHR) and health information exchange (HIE) systems throughout the country that promise to help the country reduce duplication, medication errors, and the length of hospital stays; improve patient safety and outcomes; and inform more effective public health policies.

In 2008, the U.A.E. Ministry of Health launched the “Wareed” project to establish a ‘one patient, one record’ electronic health record system by linking all of its facilities in Dubai and the northern emirates. This project, which involved deploying Cerner Millennium systems in all Ministry hospitals and clinics, was managed by Dubai-based Hybrid Health Solutions and implemented by a consortium including U.A.E. Partnerships with U.S. Medical Equipment Companies.

Here are a few examples of American industry contributing to growth in this sector:

• Medtronic signed a deal with the University of Sharjah in 2015 whereby Medtronic Academy, the educational wing of Medtronic, would collaborate with the University to educate regional physicians on Medtronic products and therapies as well as general cardiac topics
• In 2008, Tawam Hospital in Al Ain became the first SEHA hospital to successfully implement Cerner Millennium healthcare information technology solutions at its facility

Meanwhile, in Dubai, the Dubai Health Authority (DHA) embarked on an electronic health records system known as “Salama.” This system, which was announced in February 2016, has created one electronic record for each resident who uses a public hospital in that emirate. The Dubai Health Authority now intends to extend this electronic health records system to private facilities in the emirate as well through its NABIDH (Network and Analysis Backbone for Integrated Dubai Health) initiative. This initiative will ultimately enable the creation of a single unified medical record for each individual in Dubai by linking the information contained in all public and private health care facilities.

The U.A.E. is also improving healthcare through the increasing adoption of telemedicine, which enables both patients to consult medical professionals and medical professionals to consult each other from a distance. This has reduced hospital visits, limited the movement of patients between hospitals, and extended healthcare services to more remote locations.

Orthopedics is an area in medicine that deals with the treatment of the musculosketetal system, particularly the spine, joints, and muscles. The orthopedic implants market accounted for $45,901 million in 2017 is expected to reach $66,636 million by 2025, registering a CAGR of 4.7% from 2018 to 2025.

Orthopedic implants and reconstructive joint replacements occupy the largest share in orthopedic implants industry, attributed to increase in prevalence of osteoporosis and osteoarthritis, innovations in the joint replacements, and rise in investment of key players in R&D of orthopedic implants. Product types include reconstructive joint replacements, spinal implants, dental implants, trauma & craniomaxillofacial and orthobiologics.

The demand for orthopedic implants has increased significantly, owing to rise in geriatric population that increases the risk of osteoporosis, osteoarthritis, technological innovations in the orthopedic implants, and other musculoskeletal disorders.

End users include hospitals, clinics, ambulatory surgical centers and others.

Opportunities for the key players operating in the orthopedic implants market:

• High population base
• Growth in awareness about orthopedic implant
• Rise in demand for advanced implant
• Development in healthcare infrastructure
• Increase in demand for minimally invasive procedures

Orthopedic consumables are used to treat complex orthopedic injuries and include drill bits, saw blades, burrs, K-wires, and pins. Global growth in this sector is due to:

• Increasing cases of accidental injuries of lower and upper extremity regions
• Fractures in the spine
• Injury to soft tissues
• Sport injuries
• Growing number of reported accidental injuries (1.25 million road traffic deaths are reported annually)

Orthopedic prosthetics are devices that help identify, design, produce, and fit custom-made artificial limbs in patients that have a missing part of a limb lost through disease, trauma, or a congenital condition. The rise in orthopedic injuries and chronic conditions that result in bone-related deformities creates a need for orthopedic prosthetics.

Rehabilitation Market

Rehabilitation refers to the treatment designed to facilitate the process of recovery from injury, illness, or disease to a normal condition by therapy and counseling.

The major factors that drive the growth of this market include

• Rowing incidence of disabilities that result from non-communicable diseases
• Favorable healthcare reforms
• Rapid growth in geriatric population
• Rising prevalence of chronic diseases
• Advancements in technology such as designing smart accessible gadgets
• Increased adoption due to the fact that a wide range of equipment is re-usable in nature

The global rehabilitation equipment market is segmented on the basis of technology, application, and region. Based on technology the market is segmented into daily living aids, mobility equipment, exercise equipment, and body support devices. On the basis of application it is segmented into physiology and occupational therapy.

Key players in this market include Invacare Corporation IVC, Medline Industries, Inc., Dynatronics Corporation, Drive DeVilbiss Healthcare (Medical Depot Inc.), Carex Health Brands, Inc., Caremax Rehabilitation Equipment Co., Ltd. , and GF Health Products, Inc.

According to a new report published by Allied Market Research, titled “Over the Counter (OTC) Drugs & Dietary Supplements Market by Category, Dosage Form, Product, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2017-2023,” the global over the counter (OTC) drugs & dietary supplements market was valued at $223 million in 2016, and is projected to reach $335 million by 2023, growing at a CAGR of 5.9% from 2017 to 2023. The vitamins and dietary supplements (VDS) segment accounted for maximum share of about half the global market share in 2016.

Driving the global market:

• Improvement in lifestyle
• Ageing of baby boomers
• Rise in awareness about general health concerns
• Increase in trend among individuals to opt for OTC drugs for self-medication

The U.S. was the major shareholder in the North America over the counter (OTC) drugs & dietary supplements market in 2016. The branded OTC drugs segment occupied about three-fifths share of the global market by product in 2016, and is expected to retain its dominant position throughout the forecast period.

The pharmacies segment accounted for about half of the global market share in 2016, whereas the online pharmacy segment is expected to witness a high CAGR of 6.9%.

In 2016, Asia-Pacific and MENA collectively accounted for about half share of the global market, and is expected to continue this trend throughout the forecast period. The factors driving the market growth include:

• Increase in awareness about OTC drugs and dietary supplements
• Occurrence of common ailments such as cold & cough
• Infectious diseases
• Oral diseases
• Increase in the availability of these drugs specifically in China, India, and the other developing economies to meet the growing demand for OTC products
• Large population base and growth in economy
• Stronger consumer health concerns
• Icrease inself-care and preventive care medical devices and products
• Shifts from institutional towards out-patient care
• A move from curative towards preventative care.

Global nutraceuticals market size is expected to reach $302,306 million by 2022 from $184,092 million in 2015 with a CAGR of 7.04% from 2016 to 2022. The global nutraceuticals product market holds a substantial scope for growth; however, its contribution to the global market is projected to increase significantly within the next six years. Nutraceuticals are versatile in nature as they are used in numerous industries such as pharmaceutical food & beverages, animal feed additives, and personal care. Recent innovations and findings of function-specific antioxidants are expected to create new opportunities in this booming sector. Nutraceutical products are the necessity of the modern world. The market is poised to witness significant growth during the forecast period, owing to the increase in demand for preventive healthcare and rise in medical treatment, which stimulates the demand for nutraceuticals-containing products.

Leading players in the global nutraceuticals market have adopted various strategies gathered from press releases, annual reports, and primary calls made to industry experts to achieve additional market share. Key strategies adopted by these players include product launches, joint ventures, acquisitions, partnership, expansion, collaboration, and investments.