The Impact of the Top 3 Strategic Imperatives on Emerging Companies in the Cardiovascular Devices Industry

Competitive Intensity

• Why:
  • Competition among cardiovascular devices vendors is quite intense in both the therapeutic and monitoring space.
  • A main area of focus for companies is new product development that leads to increased investments in research and development (R&D) by established companies and capital flowing to startups with strong innovative solutions.
• Frost Perspective:
  • Companies such as Abbott, Medtronic, and Edwards LifeSciences are focusing on new product development to cater to the unmet needs in the structural heart and electrophysiology markets.
  • The cardiovascular monitoring market is characterized by product development in wearable technology, with multiple leads and multiparameter patient monitoring technology.

Industry Convergence

• Why:
  • Consumer companies have made inroads in wearable technology for cardiovascular monitoring.
  • A strong market trend is the convergence of artificial intelligence (AI)-based wearable technologies to develop solutions for early disease identification, thereby contributing toward early disease detection and an increased patient pool.
• Frost Perspective:
  • Companies with wearable technology will be increasingly integrating AI into their monitoring technologies. Companies such as SmartCardia and Ultromics have already integrated AI into their product offerings.
  • Real-time continuous monitoring, coupled with AI, can identify at-risk patients and help lower mortality and hospitalization costs through early interventions.

Innovative Business Models

• Why:
  • The use of monitoring systems in hospital inpatient settings entails significant upfront costs, in addition to recurring costs associated with consumables, accessories, and services.
  • Hospitals will be looking to scale back their capital investments by adopting innovative solutions that charge a fee per patient, per service.
• Frost Perspective:
  • Wearable technology companies will focus on penetrating the hospital segment market in the next 1 to 2 years because the technology can help hospitals lower costs by charging on a per-patient basis.
  • Hospitals, therefore, can transition from CAPEX to OPEX, enabling them to allocate their valuable resources toward long-term growth and innovation.

Research Scope

• This report provides a strategic overview of emerging cardiovascular device participants.
• The study offers an overview of companies' product portfolios, growth strategies, product planning, platform development, and positioning.
• The report examines emerging participants’ go-to-market strategies and their activities and relationships in the respiratory devices industry.
• The study provides market dynamics, key takeaways, and growth opportunities based on the emerging companies discussed in the report.

Growth Drivers

• There is a growing cardiovascular disease burden and even greater need to diagnose, treat, and monitor the suspected disease in individuals. Early detection and interventions can save lives and expensive hospitalization costs. In the United States alone, more than 7 million individuals undergo diagnoses for different types of arrhythmias and cardiac conditions in outpatient settings. This number is expected to grow by 10% annually for the next 10 years.
• Strong demand exists for products and solutions that can lower inpatient hospitalizations, considering the lack of availability of a skilled healthcare workforce and tackling the growing hospital operational costs. Wearable technology can address these challenges by enabling at-home monitoring and lowering the upfront capital investments on medical device equipment, such as ECH and Holter monitors.
• Virtual rehabilitation solutions for cardiovascular patients are gaining traction because of constraints related to hospital capacity to provide in-person rehabilitation programs.

Growth Restraints

• Real-time continuous monitoring may not be cost efficient in the emerging economies of India and China because of the reimbursement challenges for the technology.
• The large portion of the undiagnosed population, especially in low- and middle-income countries, is hindering the surgical intervention and diagnostic markets.