Disruption in the medical technology industry
Today, the medical technology industry around the globe is going through a fundamental shift and is moving toward a value-based model, which has led to consolidation and the disruption of traditional value chains. The industry is witnessing the entry of new players and the increasing role of data in customer-centric solutions and business models.
Johnson & Johnson (JNJ) has been working on changing its business model. It’s been implementing strategies to maintain its position in the market and leverage its strong position and product portfolio to expand its presence and turn challenges into opportunities.
Global trends impacting the Medical Devices segment
Today, global healthcare expenditure is growing at a faster rate than GDP. The population that is over 16 is growing at a faster pace than other age groups. In emerging markets, the middle-class population is growing quickly, increasing the demand for and access to healthcare.
Moreover, healthcare providers are going through fast-paced consolidation and globalization. Other recent trends, such as increased consumer influence, new care setups outside of hospitals, and data analytics, have led to the need for new care models and therapy solutions. Johnson & Johnson has recognized these needs. It’s well positioned to leverage this opportunity in the medical technology space and establish itself as the leading player with a relevant business model in the changing healthcare market.
JNJ is the leading player in orthopedics, surgery, and contact lenses, and it has a huge market presence around the world. JNJ is one of the leading players in emerging markets that are expected to register significant procedural growth. According to the company’s estimates, the global medical devices market it competes in will grow to over $120 billion by 2022.
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