Medical Technology Sector in Portugal contributes to reducing hospitalizations and costs in the NHS

Conclusions of the first major study on the Medical Technologies Market, now released.

The Portuguese Association of Medical Device Companies (APORMED) has just released the results of its first major study on the Medical Technology Market, conducted in collaboration with Antares Consulting. This initiative, part of APORMED's 35th anniversary celebrations, aims to characterize the national market and understand the role of Medical Technologies in the healthcare sector.

According to the study's results, investments and advances in Medical Technologies (TM) are profoundly transforming the healthcare landscape, making essential contributions to achieving better health outcomes, increasing the population's life expectancy and quality of life, and also generating significant gains for the healthcare system.

The study includes a quantitative analysis, which characterizes the Medical Technology sector in Portugal in terms of number and type of companies, employment, level of qualification of human resources, contribution of companies to the trade balance, investment in Research and Development, among others, and a qualitative analysis, which assesses the creation of value and the contribution of medical technologies to the sustainability of the NHS and to all stakeholders in the health ecosystem, including patients and users, health professionals, medical care providers, funders, and the public and private sectors.

According to this study, the value of the TM market in Portugal has shown positive evolution, rising from around 1,440 million euros in 2018 to around 2,200 million euros in 2023, which represents an average annual increase of 8.8%.

This performance reflects the growing relevance of TM in the healthcare landscape. However, it occurs at a time of rising contextual costs, driven, among other factors, by the implementation of the new Regulations on Medical Devices and In Vitro Diagnostic Medical Devices, which have imposed increased requirements and additional investments on companies in the sector.

According to Antonieta Lucas, president of APORMED, “this study was designed to address the lack of information available on the Medical Technology sector in Portugal.”

In this sense, he adds, “APORMED considered that it would be opportune and of great use to promote a market study that would cover a quantitative and qualitative dimension of the sector that this Association represents”.

"We believe that its findings will contribute to further health gains, greater sustainability of the National Health Service (NHS), and better access for citizens to innovative medical technologies that improve quality of life," adds Antonieta Lucas.

"Medical device companies contribute to the sustainability of the healthcare system and play a crucial role in the country's economy through their more than 7,000 jobs, highly qualified human resources, and export capacity, which in this industry's case reaches 400 million euros," he adds.

Regarding the characterization of the national market , taking into account the sample of companies analyzed, it can be seen that 53% of the companies' turnover is directed to entities of the National Health Service (SNS) , 30% to private hospitals and clinics , 14% to retail , with the remaining segments presenting a residual representation.

An analysis of the breakdown of companies' business volume by product area reveals different segments based on their performance and potential:

• The cardiology sector stands out as one of the sectors with the highest growth rates and the largest market share, on average from 2022 to 2024, as well as the highest sales volume in 2024. The areas of orthopedics, hearing devices, and ophthalmology are also among those with the highest growth rates and very significant market shares.
• In vitro diagnostic medical devices have the second largest market share on average over the last 3 years and the second largest sales volume in 2024, although they will record a negative growth rate between 2022 and 2024, resulting from the post-pandemic period.
• Imaging and general and plastic surgery are at an intermediate level where their market shares are still moderate, but their rapid growth could lead to their greater representation in the market.

Regarding human resources , the TM sector has been increasing the number of jobs created, has a younger workforce, with qualification levels significantly higher than the national average and with less seniority in companies, reflecting a dynamic of renewal and high specialization.

Regarding value creation, the study demonstrates that the Portuguese healthcare system has progressively benefited from investment in medical technologies, which have driven the development of more proactive, efficient care models that promote greater patient autonomy and well-being, applicable at different levels of healthcare, in the public, private, and social sectors.

The example included in the study is the contribution of Medical Technologies to the increase in outpatient surgeries, in which the patient is admitted, operated on, and discharged on the same day, without the need for hospitalization, thus enabling a faster recovery that anticipates the return to work. The study estimates that the total benefits associated with the hospitalization days avoided between 2014 and 2023 will be in the order of €469.3 million, and that the benefits associated with the productivity losses avoided between 2014 and 2023 will be in the order of €55.5 million.

Europe plays a strategic role in the TM sector, positioning itself as the second-largest market in the world. The five most representative countries are Germany, France, Italy, the United Kingdom, and Spain, representing approximately two-thirds of the European market.

With a value of €2.2 billion, the Portuguese TM market shares similarities with the European market in terms of structure and operator types. The vast majority of the market is made up of SMEs (Small and Medium-Sized Enterprises), although in Portugal, these companies are smaller on average. In terms of per capita TM spending, the figure recorded in Portugal is still significantly lower than the European average.

The outlook for the coming years points to continued growth , at an average annual rate of close to 5%, with the global market value estimated to reach around €750 billion by 2028.