Complete Survey of the Medical and Medical Device Sector 2024

The Syndicat national de l'industrie des technologies médicales(Snitem) has drawn up a snapshot of companies in the sector. For the first time in 2021, this study has been supplemented by an analysis of subcontracting and company financing models.

Medical Place is here to help you make sense of this essential study for the medical device sector.  

Persistent challenges, accentuated by the health crisis

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

Issue no. 1: The implementation of the new European regulations will have a major impact on the industry: rationalization, reduction in supply, even risk of company failure, etc.

Issue no. 2: The sector's growth, mainly driven by international sales, has been severely affected by the health crisis: overall decline in sales for the sector in France, despite strong growth in the IVD sector.

Issue no. 3: A job-creating sector that is struggling to recruit.

Issue no. 4: Long and costly access to the French market for innovative products.

Issue no. 5: Financing, particularly post-seed financing, remains a concern. 59% of companies surveyed noted a lack of post-seed financing.

Issue no. 6: Insufficient recognition by public authorities

Key figures for medical devices in France

- 30.7 billion euros in sales on the French market

- 10 billion euros in export sales

- 93% SME

- 88,000 active jobs

- 1,440 companies listed, 91% of which are exclusive manufacturers of medical devices

If we exclude the momentum observed in the in vitro diagnostics sector and the export dynamic, the sector's sales are down.

Medical devices and subcontracting

The importance of preserving a network of subcontractors and raw material suppliers in France has been particularly accentuated by the health crisis, especially in the healthcare sector. For the first time, the panorama of the medical device industry in France presents a snapshot of subcontracting companies. Theaddition of subcontracting to this panorama complements previous studies and provides a comprehensive overview of the industry.

Nearly 650 active subcontractors (partially or exclusively) have been identified. These companies generate sales of €9 billion, 25% of which is in the medical sector. Some 15,000 employees work directly in the medical sector. These subcontractors are mainly active in the mechanical, plastics and electronics sectors.

Nearly 68% of medical device companies choose subcontractors located in France. European subcontractors account for 24%. The remaining 8% subcontract internationally (USA and Japan).

It should also be noted that shortages of plastics, electronic components, semiconductors and certain textiles used in the manufacture of medical devices are generating price rises that can exceed 50%.

Did you know?

A medical device manufacturer has an average of 15 subcontractors

Medical devices and company financing

Alongside the photograph on subcontracting, Snitem presented a section on the financing of medical device companies.

The findings show that to cope with new regulations and, in particular, rising raw material prices, unlisted medical device companies have been raising funds to finance themselves and thus ensure their growth. Since 2018, there has been a sharp increase in the resources raised annually by innovation capital. This is mainly due to the increase in the number of deals. In 2021, despite a decrease in the number of deals, the average amount was stable.

Dynamic start-ups

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

- 20 startups focused on e-health medical devices

- 18 startups focused on medical equipment devices

- 14 startups focused on single-use medical devices

- 11 DM-DIV startups

" This snapshot of the sector shows its strategic and economic potential. It also reveals the weaknesses that we must address, together with the public authorities, if we are to meet the healthcare challenges facing the French in the coming years ", Philippe Chêne, President of Snitem.

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