Market drivers in medtech

Welcome to the 2024 forecast issue which looks at the medical device and equipment manufacturing market and what growth is ahead. As we enter 2024, it’s good news for machine tools and other manufacturing production technologies. According to the latest report from Precedence Research, the global machine tools market size was around $82.9 billion in 2022 and is predicted to reach $139.69 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.9% during the forecast period.

Medical device and equipment manufacturing remains the solid and steady market that typically sees growth between 4.5% and 6.5%, and as our cover story notes, forecasts show the market should grow at 6.20% through 2032, supporting the growth projections for machine tools. The market expects to see increased demand for 5-axis machining since it allows for the machining of complex geometries from multiple angles, an increasingly important area in medical device and equipment manufacturing as it allows production of devices with more intricate features.

Beyond machine tools, additional manufacturing technology such as additive manufacturing (AM) is expected to have significant growth in medical device and equipment manufacturing. For AM it’s because of its ability to allow for the creation of complex geometries that are difficult or impossible to produce with traditional machining methods, as well as the ability to deliver customization to patients.

Another area of growth continues to be automation, as it’s becoming increasingly important in the medical device and equipment manufacturing industry as manufacturers are under pressure to keep costs down. Automation and robotics help improve production efficiency, reduce costs, and ensure quality control. Robots can perform repetitive tasks such as welding and assembly and deliver consistent, quality results.

Further optimism for this year comes from the Institute for Supply Management’s (ISM) December 2023 Semiannual Economic Forecast, which indicates economic improvement in the United States will continue in 2024. Revenues are expected to increase in 15 of 18 manufacturing industries, which includes miscellaneous manufacturing under which medtech manufacturing is categorized. In the manufacturing sector, capital expenditure is expected to increase by 11.9% and employment is expected to grow by 2%. After projected growth in manufacturing in the first half of the year, growth in the second half is projected to accelerate further. These projections are part of the forecast issued by the Business Survey Committees of Institute for Supply Management (ISM).

What are your projections for your manufacturing operations as we kick off the new year? Drop me an email and let me know the challenges and opportunities you anticipate.