SEGMENTATION OF THE MEDICAL INSTRUMENT MARKET OF THE EU

Abstract

The global market of medical instruments comprises a large number of products developed with different levels of technology involved, which as a result may present a high range of complexity for users. According to various estimates, as of the beginning of 2020, more than 500,000 medical devices are utilized in daily use. Some of them are being used by individuals who require medical assistance at home, whereas a significant portion of the equipment is utilized in health care institutions only, as it must be handled by medical professionals. Obviously, from enterprise perspective these two types of products will cause different approaches in marketing and business activities, such as advertising, servicing, further disposal, etc. Also, different medical devices fall under specific regulations not allowing them to be put into commercial turnover without following respective requirements, which is especially applicable for the EU legal framework. For this reason, this sector of the economy is divided into segments, each of which corresponds to a certain type of devices. Segmentation of any sector of economic activity allows to scrutinize its structure, competitive advantages and operational issues at the corporate level, which in turn provides a clearer and more objective picture of the financial condition of enterprises involved in the market. Although the segmentation of the medical instruments sector of the European Union is not unique and, as in other regional markets, is carried out according to a division similar to the world practice, its results allow comparing the positions of European corporations with competitors operating on other continents. The paper analyzes the largest segments of the global medical instruments market in terms of monetary volume and provides a comparative assessment of the European business for each of them, taking into account objective and subjective reasons for its place among the world competitors. As an outcome, segments where the corporate residents of the European Union hold leading positions were identified along with the spheres, where these companies will have to take extra effort to be able to compete with American and Asian transnational corporations.