The medical technology industry is growing as an increasingly significant sector of the Massachusetts economy. According to predictions from Evaluate Ltd., a market research firm, it is expected to grow at a 5 percent annual rate for the next five years. The report, entitled “EvaluateMedTech World Preview 2014, Outlook to 2020” (free registration required for download) shows that medical technology sales are expected to reach $514 billion by the end of that period, with influential mergers and emerging players reconstructing the faces of industry leaders.
Westborough-based Coghlin Companies, Inc. recently announced that their subsidiary Cogmedix, a medical device manufacturer founded in 2008, had outgrown its space and was relocating to its new location in Worcester, more than doubling the size of its facility to keep up with growth and demand. The announcement of the merger involving Medtronic and Covidien, estimated at $42.9 billion, is is anticipated to form the new market leader in an industry that will be worth over half a trillion dollars by 2020.
Research has also shown that spending on global research and development will reach $30.5 billion by that year, a growth of 4.2 percent. In the first half of 2014, $1.3 billion was raised in completed medical technology IPO offerings, a 44 percent increase from the same period in 2013. During the first half of this year, the value of mergers in the medical technology field rocketed up by 363 percent compared with the same period the year before, a huge indicator of what can be expected in the near future.