Complete Study on the Medical Sector and Medical Device 2024

The National Union of the Medical Technology Industry (Snitem) draws up a picture of companies in the sector. For the first time in 2021, this study was complemented by an analysis of subcontracting and business financing models.

Medical Place helps you to see more clearly in this study, which is essential for the medical device sector.

Challenges identified as persistent, accentuated by the health crisis

The panorama highlights 6 challenges, already identified in previous years but accentuated by the health crisis:

Issue 1 : The implementation of the new European regulation has strong consequences on the sector: rationalization, reduction of supply, even risk of business failure, etc.

Issue no. 2 : The growth of the sector, mainly driven by the international sector, was very largely affected by the health crisis: overall decrease in the turnover of the sector on the national territory despite strong growth in the IVD sector.

Issue #3 : A job-creating sector that is struggling to recruit.

Issue #4 : Long and expensive access to the French market for innovative products.

Issue #5 : Financing, especially post-seed, remains a concern. 59% of companies surveyed note a lack of post-seed financing.

Issue #6 : A lack of insufficient recognition on the part of public authorities

Key figures for medical devices in France

- 30.7 Billion euros in turnover on the French market

- 10 Billion euros in export turnover

- 93% Of SMEs

- 88,000 active jobs

- 1 440 companies listed including 91% of exclusive manufacturers of medical devices

If we exclude the dynamics observed in the diagnostic sector In vitro and export dynamics, the sector is showing a decrease in turnover.

Medical device and subcontracting

The importance of maintaining a network of subcontractors and suppliers of raw materials in France has been particularly accentuated by the health crisis, specifically in the health sector. For the first time, the panorama of the industrial sector of medical devices in France presents a picture of subcontracting companies in France. THEadding subcontracting to this panorama makes it possible to complement previous studies and to understand all the facets of this sector..

Close to 650 active subcontracting companies (partially or exclusively) have been identified. They generate a turnover of 9 billion euros, 25% of which is generated in the medical sector. Around 15,000 employees are directly involved in the medical sector. These subcontractors are mainly active in the mechanical, plastics and electronics sectors.

Close to 68% of medical device companies choose subcontractors located in France. European subcontractors represent 24%. The remaining 8% subcontract internationally (United States and Japan).

It should also be noted that the shortage of plastics, electronic components, semiconductors or even certain textiles used in the manufacture of medical devices is generating price increases that can exceed 50%.

Did you know that?

A medical device manufacturer has an average of 15 subcontractors

Medical device and business financing

In addition to photography on subcontracting, Snitem presented a section on the financing of medical device companies.

It appears that to face new regulations and in particular the rise in the price of raw materials, unlisted medical device companies have carried out raising funds for their financing and thus ensure their growth. Since 2018, there has been a strong increase in the resources raised annually by innovation capital. They are mainly driven by the increase in the number of transactions. In 2021, despite a decrease in the number of transactions, the average amount proved to be stable.

The strong dynamism of start-ups

Between 2019 and 2021, 63 new companies joined the medical device market. 100% of companies are medical technology start-ups:

- 20 startups positioned on e-health medical devices

- 18 startups positioned on medical equipment

- 14 startups focused on single-use medical devices

- 11 startups positioned on DM-DIV

” This photograph of the sector shows all the strategic and economic potential of our sector. It also reveals its weaknesses that we must combat, together with the Public Authorities, in order to be able to meet the health challenges of French people in the coming years. ”, Philippe Chêne, President of Snitem.

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