Medical Equipment - UK - December 2016

EXECUTIVE SUMMARY
Market size
Moderate market growth expected in 2016
Figure 1: UK Market for Medical Equipment, 2012-2016, (£ Million at MSP)
Figure 2: Segmentation of the UK Market for Medical Equipment, by Type, 2012-16, (£ Million at MSP)
Market factors
Increase in real terms NHS spending and capital spending expected for 2016/17
Figure 3: NHS Expenditure in England, in Real Terms, 2012/13-2016/17*, (£ Billion)
... but these plans may be subject to change depending on the impact Brexit negotiations have on the economy
The UK’s ageing population underpins demand for intensive healthcare
Supply sources
Figure 4: UK Production of Medical Equipment, 2012-16, (£ Million at MSP)
Companies
Figure 5: Profiled Companies’ Combined Turnover, 2011-2015, (£ Million)
Forecast
NHS funding pressure will undermine strong growth potential from underlying factors
Figure 6: UK Medical Equipment Market Forecast, 2017-21, (£ Million at 2016 prices)
Sales of supplies expected to decline as purchasers seek savings
Figure 7: UK Market Segmentation Forecast for the Medical Equipment Market, by Type, 2017-21, (£ Million at 2016 prices)
What We Think
KEY INSIGHTS
What actions undertaken to meet efficiency savings by the NHS have impacted the industry?
How could the UK’s exit from the European Union affect the industry?
How will the market perform over the foreseeable future?
INTRODUCTION
Definitions
Methodology
Abbreviations
MARKET POSITIONING 
The Customer
The Supplier
The Regulatory Environment
UK ECONOMY
Key Points
Overview
Figure 8: UK GDP, 2006-2016, (% Quarterly Growth and GDP in £ Billion)
Figure 9: UK Output, by Industry, 2008-2016, (Index 2013 = 100)
Figure 10: Quarters after GDP Peak, 1979, 1990 and 2008, (Number of Quarters and GDP as % of PreDownturn Peak)
Inflation
Interest rates
House prices
Figure 11: UK House Price changes, 2006-2016, (12-month % change)
Consumer spending
Manufacturing
Figure 12: UK Manufacturing, 2014-16, (Index, 2013 = 100)
Business investment
Figure 13: UK GFCF 2005-15, (£ Million)
Imports
Exports
MARKET FACTORS
Key Points
The number of people with chronic illnesses continues to rise - increasing the burden on healthcare services
Figure 14: People with Long-Term and Chronic Illnesses, in England, 2007/08-2015/16, (Million)
Figure 15: People with Long-Term and Chronic Illnesses in England, 2007/08 and 2015/16, (Million)
The UK’s ageing population underpins demand for intensive healthcare
Figure 16: UK Population Estimate and Projection, by Age Group, 2016 and 2020, (Million)
Figure 17: UK Population Estimate and Projection, by Age Group, 2016 and 2020, (% of Total Population)
Increase in real terms NHS spending and capital spending expected for 2016/17...
Figure 18: NHS Expenditure in England, in Real Terms, 2012/13-2016/17*, (£ Billion)
Figure 19: NHS Expenditure in England, in Real Terms, 2012/13-2016/17*, (£ Billion)
Figure 20: NHS Capital Expenditure in England, in Real Terms, 2012/13-2016/17*, (£ Billion)
Figure 21: NHS Capital Expenditure in England, in Real Terms, 2012/13-2016/17*, (£ Billion)
... but these plans may be subject to change depending on the impact Brexit negotiations have on the economy
Companies have invested more in R&D as physicians help pinpoint key areas
Figure 22: R&D Investment by European Healthcare Equipment Companies, 2015/16, (( Million and %)
Rising healthcare services demand has led to an expansion in the number of UK healthcare facilities
Figure 23: Number of Hospitals/General and Special Medical Practices in the UK, 2012-2016, (Number)
Figure 24: Number of Hospitals/General and Special Medical Practices in the UK, 2012-2016, (Number)
Value of new construction work has stagnated with the number of smaller builds on the rise
Figure 25: New Work Construction in the Public and Private Health Sectors, in Great Britain, 2011-15, (£ Million)
Figure 26: New Work Construction in the Public and Private Health Sectors, in Great Britain, 2011-2015, (£ Million)
MARKET SIZE
Key Points
Planned healthcare budget improvements could be affected by economic uncertainties, with efficiency saving targets unlikely to be met
Moderate market growth expected in 2016
Figure 27: UK Market for Medical Equipment, 2012-16, (£ Million at MSP)
Figure 28: UK Market for Medical Equipment, 2012-2016, (£ Million at MSP)
Market Segmentation
Figure 29: Segmentation of the UK Market for Medical Equipment, by Type, 2012-16, (£ Million at MSP)
Figure 30: Segmentation of the UK Market for Medical Equipment, by Type, 2012-16, (£ Million at MSP)
MARKET TRENDS
Key Points
Manufacturers focusing on innovative products to boost margins in a cost-wary healthcare industry...
... while also offering healthcare providers the option of leasing and renting equipment
Equipment is currently being under-utilised
Fewer M&A deals due to recent industry consolidation making asset availability scarce
Figure 31: UK Mergers and Acquisition Deals, by Equipment Segment, 2014 and 2015, (% of Deals)
Figure 32: UK Mergers and Acquisition Deals, by Equipment Segment, 2014 and 2015, (% of Deals)
SUPPLY SOURCES
Key Points
Production
Figure 33: UK Production of Medical Equipment, 2012-16, (£ Million at MSP)
Figure 34: UK Production of Medical Equipment, 2012-16, (£ Million at MSP)
Figure 35: Segmentation of the UK Production of Medical Equipment, by Type, 2012-16, (£ Million at MSP)
Figure 36: Segmentation of the UK Production of Medical Equipment, by Type, 2016, (£ Million at MSP)
Imports
Figure 37: UK Imports of Medical Equipment, 2012-16, (£ Million at CIF)
Figure 38: UK Imports of Medical Equipment, 2012-16, (£ Million at CIF)
Figure 39: Segmentation of UK Imports of Medical Equipment, by Type, 2012-16, (£ Million at CIF)
Figure 40: Segmentation of UK Imports of Medical Equipment, by Type, 2016, (£ Million at CIF)
Exports
Figure 41: UK Exports of Medical Equipment, 2012-16, (£ Million at FOB)
Figure 42: UK Exports of Medical Equipment, 2012-16, (£ Million at FOB)
Figure 43: Segmentation of UK Exports of Medical Equipment, by Type, 2012-16, (£ Million at FOB)
Figure 44: Segmentation of UK Exports of Medical Equipment, by Type, 2016, (£ Million at FOB)
INDUSTRY STRUCTURE
Key Points
Industry Development
Industry Structure
Figure 45: Analysis of the Changes in the Structure of the Medical and Dental Instruments and Supplies Manufacturing Industry, 2012-16, (Number of Outlets and Businesses)
Figure 46: Analysis of the Changes in the Structure of the Medical and Dental Instruments and Supplies Manufacturing Industry, 2012-16, (Number of Outlets and Businesses)
Figure 47: Analysis of the Structure of the Irradiation, Electromedical and Electrotherapeutic Manufacturing Industry, 2012-16, (Number of Outlets and Businesses)
Figure 48: Analysis of the Structure of the Irradiation, Electromedical and Electrotherapeutic Manufacturing Industry, 2012-16, (Number of Outlets and Businesses)
Structure by Employment
Figure 49: Analysis of the Employment Structure of the Medical and Dental Instrument Manufacturing Industry, 2015-16, (Number of Outlets)
Figure 50: Analysis of the Employment Structure of the Irradiation, Electromedical and Electrotherapeutic Manufacturing Industry, 2015-16, (Number of Outlets)
Structure by Turnover
Figure 51: Analysis of the Financial Structure of the Medical and Dental Instrument Manufacturing Sector, 2015-16, (£ 000 and Number of Companies)
Figure 52: Analysis of the Financial Structure of the Irradiation, Electromedical and Electrotherapeutic Sector, 2015-16, (£ 000 and Number of Companies)
COMPANY PROFILES
ABBOTT LABORATORIES 
Figure 53: Financial Analysis of Abbott Laboratories, 2011-15, (£ Million)
Company Strategy
ATLAS COPCO MEDICAL
Figure 54: Financial Analysis of Atlas Copco Medical, 2011-15, (£ Million)
Company Strategy
B. BRAUN MEDICAL
Figure 55: Financial Analysis of B Braun Medical, 2011-15, (£ Million)
Company Strategy
BAXTER HEALTHCARE
Figure 56: Financial Analysis of Baxter Healthcare, 2011-15, (£ Million)
Company Strategy
BECTON DICKINSON
Figure 57: Financial Analysis of Becton Dickinson UK, 2011-15, (£ Million)
Company Strategy
CLEMENT CLARKE INTERNATIONAL
Figure 58: Financial Analysis of Clement Clarke International, 2011-15, (£ Million)
Company Strategy
CORIN GROUP
Figure 59: Financial Analysis of Corin Orthopaedics Holdings, 2013-15, (£ 000)
Company Strategy
GE MEDICAL SYSTEMS
Figure 60: Financial Analysis of GE Medical Systems, 2011-15, (£ Million)
Company Strategy
JOHNSON & JOHNSON MEDICAL
Figure 61: Financial Analysis of Johnson & Johnson Medical, 2011-16*, (£ Million)
Company Strategy
OXFORD INSTRUMENTS
Figure 62: Financial Analysis of Oxford Instruments, 2012-16, (£ Million)
Company Strategy
SMITH & NEPHEW
Figure 63: Financial Analysis of Smith & Nephew, 2011-15, ($ Million)
Company Strategy
SPACELABS HEALTHCARE
Figure 64: Financial Analysis of Spacelabs Healthcare, 2011-15, (£ Million)
Company Strategy
Figure 65: Profiled Companies’ Combined Turnover, 2011-2015, (£ Million)
FORECAST
Key Points
NHS funding pressure will undermine strong growth potential from underlying factors
Figure 66: UK Market Forecast for Medical Equipment, 2017-2021, (£ Million at 2016 prices)
Figure 67: UK Medical Equipment Market Forecast, 2017-21, (£ Million at 2016 prices)
Sales of supplies expected to decline as purchasers seek savings
Figure 68: Market Segmentation Forecast of the UK Medical Equipment Market, 2017-2021, (£ Million at 2016 prices)
Figure 69: UK Market Segmentation Forecast for the Medical Equipment Market, 2017-21, (£ Million at 2016 prices)
Economic uncertainty created by Brexit could add further barriers to market value growth
With challenging market conditions in the UK, companies are looking further afield for fresh opportunities
Technological and innovation development key to improving equipment affordability and capability
FURTHER SOURCES AND CONTACTS
Trade Associations
Trade Magazines
Trade Exhibitions