The MedTech industry of 2024 will be characterized by the widespread integration of generative AI, streamlining of processes, and improving product designs. Inflation concerns loom, impacting costs, while geopolitical tensions cause disruptions in global supply chain lines. The industry anticipates enhanced customer experiences through digital innovation, yet a complete adoption of hybrid sales models remains incomplete. Furthermore, Environmental, Social, and Governance (ESG) considerations gain prominence, influencing customer purchasing criteria and offering strategic opportunities for industry players.
So, whether you are a MedTech business owner, a sales executive or a digital marketer, here are the medical device industry statistics you need to know in 2024.
Stat #1: 90% of MedTech industry professionals expect generative AI to have an impact on their organizations next year
Generative AI continues to have a massive impact on the MedTech industry, according to a Deloitte report. A large number of life science companies are leveraging generative AI to conduct tests and create use cases for their products.
There are four main areas where generative AI is creating impact:
- Increased efficiency by speeding up human-intensive processes
- Create a personalized approach to customer building
- Enhanced product designs and experiences
- Better business data analysis
MedTech companies unlock greater value from generative AI tools by building more advanced use cases that include revamps to their internal processes along the value chain. And all of this ultimately leads them to develop more unique products and customer services. The most obvious thing that MedTech companies can do is leverage generative AI to enhance human interactions. They can use chatbots and virtual assistants to provide instant and personalized support. These companies can also make use of machine language technology like Natural Language Processing (NLP), which gives computers the ability to comprehend human language. By using these tools, MedTech companies can make interactions more human-like and engaging.
MedTech companies can also use generative AI to effectively examine customer feedback. By guaranteeing case-specific tone and context in real-time, conversational bots can enhance consumer self-service, speed up resolution processes, and increase customer satisfaction. Additionally, generative AI can benefit MedTech marketing by improving the effectiveness of salespeople by giving them more insightful data about their clients and by optimizing pricing.
Stat #2: 36% of those in the life science and MedTech industry expect inflation to influence their strategies in 2024
MedTech has always been a price-sensitive industry. Inflation is expected to have a far-reaching effect according to 36% of MedTech respondents in a survey; right from the cost of human resources to the cost of raw materials is rising. The higher cost of MedTech consumer goods will make it more difficult for customers to pay for medical services and MedTech products. Even so, inflation can also be an opportunity for companies to make their products more affordable to patients and drive up more volume sales.
Rising material and labor costs, coupled with supply chain challenges, are squeezing profit margins. The life science industry can also be impacted by the Inflation Reduction Act (IRA), which could result in lower business profits and discourage investment in R&D.
To overcome these, MedTech companies must have real-time access to production cost information in order to plan ahead and manage an unpredictable supply chain. This will help them combat inflation. Companies need to review their pricing policies and give the creation of affordable medications top priority if they want to remain competitive.
Stat #3: 6.5% of MedTech revenue is spent on R&D
In 2017, 7.1% of revenue was spent on R&D for MedTech companies. In 2024, this is expected to be at 6.5%. R&D and innovation development always have a constant push and pull in terms of delivering ROI. MedTech companies, who are able to build a stronger R&D portfolio build a greater growth roadmap for 2024. This requires companies to become agile in their R&D approach and spend. What 2024 will reveal is any MedTech company will increase their spending on R&D to push the boundaries of innovation.
If MedTech companies increase their spending on R&D, they can prioritize efficient product development, innovative solutions, personalized patient care, and gaining a competitive edge in the market. Moreover, higher R&D spending might draw in skilled professionals to MedTech firms, stimulating creativity and promoting expansion.
Stat #4: 76% of MedTech professionals expect digital to improve the customer experience
In innovating and manufacturing a MedTech device, there is still more scope to build a better customer experience by tapping into digital innovations, according to 76% of MedTech professionals. MedTech companies dedicate only 30% of their spending to digital products and service innovations.
How can stakeholders and customers experience the product without constantly needing to interact with the physical product? Virtual product simulators and digital product experiences can give stakeholders immense opportunities to experience a beta product before making the final purchase or order. This can go a long way towards helping them find answers around the product, rather than just speaking to a salesperson.
Even though such capabilities are being developed, the MedTech industry is still yet to adopt a hybrid sales system that would have a greater and wider reach to customers and stakeholders.
If the MedTech industry adopts a hybrid sales system, it can drive growth and success in the ever-evolving MedTech landscape by enhancing its sales and pricing effectiveness. It can be made available to all businesses through a hybrid sales system, which will increase sales effectiveness and spur revenue growth. Having a hybrid sales system could also assist MedTech firms in capitalizing on emerging market prospects, ensuring they stay ahead of competitors.
Stat #5: 70% of MedTech customers will include ESG in their purchasing criteria
ESG issues will become even more important for the MedTech industry in 2024. Government regulations and market sensibilities continue to evolve on this issue. And with this evolution, there is an immense opportunity for MedTech businesses. MedTech companies that make quicker choices towards ESG and work closer with government bodies, will position themselves as market leaders.
By reducing waste and increasing resource efficiency through optimized internal procedures, generative AI can help MedTech create sustainable goods. These companies can make tailored product designs that can minimize material waste and energy consumption, contributing to creating more sustainable products. Furthermore, by lowering energy use and emissions in transportation, generative AI can enhance supply chains and make them more effective and ecologically friendly.
This medical device industry overview should give you a clear picture to help direct your thinking and actions in 2024. This year holds both challenges and opportunities for the MedTech industry, and the healthcare sector as a whole. Leaders and companies that are bold enough to assess the markets and take action will be the ones standing out at the end of 2024. These medical device industry statistics point you in the right direction to take that action.
If you’re a MedTech professional looking to act on these insights and enhance your hybrid marketing strategies, you can do so using 3D product marketing. Book a free consultation with us to learn more.
