The United States accounts for the single largest proportion of the global medical device market, representing approximately 40% of the estimated $400 billion (USD) global market in 2014. Its large affluent population, tendency to adopt innovative technologies, and high device average sales prices (ASPs); it thus remains the single most attractive market for device manufacturers. However, the United States is not immune to the concerns of the rising cost of healthcare, and device manufacturers that have not already done so would be wise to diversify beyond the United States . However, expansion beyond its borders brings with it a whole host of challenges that manufacturers will need to understand in order to succeed.

Even with a safe and efficacious device and strong demand from the physician community, commercializing a device in a non-U.S. country can be very challenging. One of the most important factors to consider is device price. Pricing strategies that worked in the United States will not work in other geographies, and as a result, developing geography-specific pricing strategies is essential to avoiding commercial failure.

To be successful, you will need to understand the dynamics driving the global pricing environment, one where a multitude of factors drive vastly different price points and one where unique factors combine to drive very different pricing growth patterns.

While the United States will remain the largest and one of the highest-priced markets in the global medical device marketplace, the rest of the world offers numerous opportunities. Understanding the current state of global pricing and what to expect in terms of price and growth will allow manufacturers to plan where to best focus their efforts and what to expect in terms of success.

Questions Answered in This Report:

  • We analyzed global medical device prices by geography and by therapy class to understand where high priced countries provide a large market opportunity versus where low priced device have diminished the market opportunity. Which countries have the low average sales prices and which have the high average sales prices for medical devices?

  • We forecast the global growth average sales prices growth rates by country and by therapy class to understand the future forecast. Strong variation was seen by geography and by therapy class. Where is the long-term growth in sales prices the strongest for medical devices? Where is price erosion the strongest?

  • GPOs, tendering, foreign average pricing, local manufacturers driving deep discounts. Globally the forces driving pricing trends vary geography by geography, each being unique. What unique market forces are driving the pricing trends globally?
Author(s): Ian Swanson