Medical Electronics Market Revenue Forecast Report: Size, Share, Recent Trends, Strategic Developments, Segmentation Analysis, and Evolving Opportunities, 2023-2030

Market Overview

The medical electronics market generated revenue of USD 7,221.5 million (E) in 2023, and it will advance at 6.4% compound annual growth rate during the projection period of 2023–2030, to reach USD 11,144 million by 2030.

The growth of the industry is mainly attributed to the surging elderly population and the rising incidence of numerous chronic illnesses all over the world, including cancer, diabetes, COPD, and cardiovascular diseases. Additionally, the expansion and enhancement of the worldwide medical industry, adoption of wearable health trackers and remote patient monitoring devices, easy availability of insurance, and rising disposable income propel the market.

A variety of devices utilized for medical research, diagnosis, therapy, and surgery now come with advanced electronic components. They range from simple tongue depressors to those embedded in complex, programmable imaging systems and pacemakers.

The increasing incidence of lifestyle-associated diseases and rising global population have resulted in the surging need for fast and advanced healthcare services, which, in turn, boosts the integration of electronic components in a host of medical devices. Additionally, the expanding healthcare infrastructure and growing urbanization rate, mainly in the emerging economies of Asia, are set to boost the growth of the industry in the years to come.

Adoption of Connected Medical Devices Boosts Market Growth

The importance of wireless networks in healthcare is growing continuously as numerous on-site and remote patient monitoring devices, including cardiac monitors, blood pressure trackers, weight management devices, pulse and regional oximeters, pedometers, and sleep apnea devices, are now being given IoT and M2M connectivity. To offer prompt health tracking to patients, high-performance technologies, especially 5G/6G, are needed for transferring data to and from medical devices.

The integration of these technologies significantly lessens the time in data transmission, thus allowing doctors to respond to emergencies immediately. To offer such connectivity, 5G RF transceivers are integrated into these devices, which are, thus, becoming a key electronic component of medical systems.

Growing Geriatric Population Is another Major Market Driver 

One of the major drivers for the market is the burgeoning elderly population around the world. These people fall sick more often and more severely than younger people, which is why they need extensive care and continuous monitoring. Some common medical devices used by them are oximeters, heart rate trackers, fall alert devices, body temperature monitors, and sleep monitors, all of which consist of some kind of electronics.

Increasing Medical Tourism across Asia To Create Opportunities

The increasing medical tourism activities across Asian nations, particularly India, Thailand, and Vietnam, as well as the surging acceptance of wearable electronics for health and fitness, will offer opportunities for advanced medical devices in the years to come. 

For instance, according to the Viet Nam National Authority of Tourism, an average of 300,000 visitors come to Vietnam annually for medical purposes, with 40% of them coming to Ho Chi Minh City as the preferred destination. Moreover, the healthcare infrastructure in Vietnam is continuously enhancing, which will propel the requirement for advanced medical equipment, expertise, and technologies. 

Therapeutics Category Accounted for Largest Share

The therapeutics category, based on product, accounted for the largest medical electronics market share in 2022, and it will remain the largest throughout the projection period. This is because of the surging need for pacemakers, implantable devices, ventilators, and surgical robots.

Essentially, the rising incidence of neurological disorders, chronic respiratory diseases, and cardiovascular illnesses will drive the advance of this category in the years to come. For instance, as per the World Health Organization (WHO), approximately 32% of the global deaths are because of cardiovascular illnesses. 

Diagnostics will be the most-opportunistic category over this decade. This is mainly attributed to the increasing consciousness concerning the benefits of early disease detection amongst the population. Additionally, the surging number of hospitals and diagnostic centers, as well as the increasing incidence of numerous illnesses, boosts the need for diagnostic medical devices, such as X-ray systems, MRI scanners, and ultrasound equipment.

Sensors Dominate Market because of Their Increasing Importance in Medical Devices 

The medical electronics market, based on component, is categorized into batteries, sensors, memory chips, displays, and MCUs/MPUs. Among these, the sensors category dominated the market in 2022. Sensors are becoming more important to enhance the effectiveness and safety of medical equipment, as well as to allow for the remote monitoring of patients. 

Some common medical sensors are accelerometers, biosensors, pressure sensors, image sensors, and temperature sensors. They are primarily utilized in medical devices to transform various stimuli into electrical signals, for transmission and analysis. Furthermore, sensors can enhance medical devices' intelligence by allowing for bedside and distant vital signs observation and tracking of the functioning of life-sustaining implants. 

Moreover, these components are being integrated into medical equipment to enhance patient care and comfort and healthcare personnel’s performance and decrease healthcare expenses for everyone.

Hospitals Are Largest Users of Medical Electronics

The hospitals category, based on end user, held the largest share in 2022. This can be attributed to the increasing number of admissions in hospitals because of the rising prevalence of neurological disorders and CVDs, surging elderly population, and escalating count of road traffic accidents. Moreover, the growing investments for the enhancement of multi-specialty hospitals, as well as integrating them with advanced medical equipment, are a key factor boosting the advance of this category.

The homecare category is expected to observe the fastest growth over this decade. This can be attributed to the increasing healthcare expenses, growing consciousness about hospital-acquired infections (HAI), and rising disposable income. Additionally, the increasing demand for receiving healthcare comfortably at home is boosting the need for home-use medical devices all over the world.

Medical Electronics Market Report Coverage

Report Attribute	Details
Market Size in 2023	USD 7,221.5 Million (E)
Revenue Forecast in 2030	USD 11,144 Million
Growth Rate	6.4% CAGR
Historical Years	2017-2022
Forecast Years	2023-2030
Report Scope	Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

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North America Is Market Leader

North America leads the global medical electronics market, ascribed to the increasing acceptance of electronic devices in the healthcare industry, high disposable income, advanced access to healthcare facilities, and high healthcare expenses in the region. Moreover, the increasing investments from the government and corporate houses for offering enhanced healthcare and establishing smart hospitals are boosting the need for the numerous kinds of electronic components for medical devices in the continent.

APAC will be the most-opportunistic region in the market during the forecast period, primarily attributed to the mounting elderly population. As per the WHO, by 2050, 80% of the elderly populace around the world will be living in LMICs. Moreover, China, India, and South Korea are attracting FDIs from the major healthcare industry players in smart and technologically advanced healthcare infrastructure.

Key Players Providing Medical Electronics Are:

• Analog Devices Inc. 
• Koninklijke Philips N.V. 
• Siemens Heathineers 
• Texas Instruments Incorporated
• Tekscan Inc. 
• Renesas Electronics Corporation 
• Semiconductor Components Industries LLC
• GE Healthcare 
• Fairchild Semiconductor International Inc.
• Cypress Semiconductor Corporation
• STMicroelectronics N.V.
• TE Connectivity
• Medtronic plc