The Greek medical devices and supplies market had already recovered in 2020

The Greek medical devices and supplies market had already recovered in 2020

In 2020, Covid-19 impacted the medical devices and supplies market, with different segments of the market experiencing wide-ranging effects. The rapid initial spread of the pandemic resulted in healthcare systems being severely overwhelmed, with resources and staffing being re-directed to address the surge in patients, particularly in intensive care units.

Medical device market that are imperative to supplying hospital equipment for the management of Covid-19, such as personal protective equipment, ventilators and general hospital supplies, experienced a surge in sales to fulfill the clinical demand. In 2020, however, some companies recording a surge in sales, while a few others had decline in sales and profits.

The market for medical devices shows a recovery in 2020 with an annual rise of 12,6%, valued at 2,14 billion Euro. The value of the market decreased from over 2,7 Billion in 2009 to 2,14 Billion in 2020, at a negative average Compound Annual Growth Rate (CAGR) of around 4,27%.

Despite the significant reduction in the prices, the net profits (before taxes) of the industry in 2020 showed a significant increase of 68% from 2019 according to the published balance sheets of the companies.

The evolution of the Greek market is shown in the following Table 1

Medical Equipment (bill. €)2009201520172018201920202021**
Total Market Size *2,681,501,631,651,782,002,25
Number of companies306405416397377393400

Table 1

The sales, profits and accounts receivables for 2019-2020, of the Greek market of medical devices, are shown in Table 2.

STATITISTICSYEARYEARD%PROFIT %DIFFERENCE
2019202020192020
SALES1.780.887.730,58€2.004.834.395,05 €12,58%   223.946.664,47 €
INCREASE/DECREASE OF PROFITS   146.200.931,72€    247.199.759,29 €69,08%8,21%12,33% 100.998.827,57€
ACCOUNT RECEIVABLES   945.326.906,95€    990.845.574,80 €4,82%     45.518.667,85 €

The percentage increase/decrease in sales is varied according to the demand for specific products and devices that the companies sold in 2020 (Table 3).

INCREASE/DECREASE of SALESNo of COMPANIESINCREASEDECREASE
> 1000%44 
> 500% -999%11 
> 200% -499%88 
> 100% -199%1515 
> 50% -99%3939 
> 30% -49%1616 
> 20% -29%3838 
> 10% -19%3636 
0 SALES33 
    
> 0% -10%6666 
< 0% -10%58 58
< 10% -19%59 59
< 20% -39%35 35
< 40% –15 15
393226167
57,51%42,49%

Table 3

Data sources:
* Institute of Supply Chain & Hospital Technology, based on input from companies annual financial reports and industry executives

** Estimation

From 2010 onwards, austerity measures and health expenditure cuts, had a substantial impact on the medical device market. Because of the difficult economic situation over the past few years, demand for products had decreased and cost-efficiency has become a determining factor in many cases. Pricing continues to be a deciding factor when it comes to procurement for most of medical equipment and for all medical supplies.

Public healthcare institutions (public and private hospitals, health centers, diagnostic centers, clinics, private offices) are the main purchasers of medical equipment and supplies. For some product categories, demand comes, also, directly from individual consumers through the National Organization for Healthcare Provision policy (EOPYY).

In the Greek medical device and supplies market, more than 800 companies are active, mainly as importers, distributors, wholesalers and retailers. The medical devices and supplies sector continues to rely heavily on imports, since there are limited number of medical supplies manufactures focused mainly on low-value products such as bandages, gauze, and basic hospital furniture (beds, stretchers etc).

According to the Institute, the Greek medical devices sector, although a large percentage of health expenditures in Greece, is not treated like medicine. The world market is of the order of 470 billion €, the European market of 140 billion € (27% of the world market), while the Greek market of the order of 2.14 billion € (1,53% of the European market). There are hundreds of thousands of medical devices, from consumables (bandages, gauze, etc.), to high-tech machines (PET-CT, linear accelerators, robotic surgical systems, MRI and CT scans, etc.).

Small and medium sized companies make up 48 percent of the market and account for 70 percent of the sales.  Large companies account for only 0,1 percent of the market but they generate approximately 15 percent of the sales.  Most of the multinational companies (European and from USA are well established in Greece).

Company category*No of companiesComp. shareSales share
Large                 ≥ €44 million50,13%14,9%
Medium-sized ≤ €43 million4411,22%42,7%
Small-sized      ≤ €10 million14436,73%28,7%
    
Micro                ≤ €2 million20050,77%13,7%
Total393**100,00%100,0%

Table 4

Sources:  Institute of Supply Chain & Hospital Technology, The Pulse of the Greek Medical Devices Market
*defined by the European Commission
** The number corresponds to the financial reports published by the companies. The number of companies corresponds to the financial reports

It is forecast to grow at a CAGR of around 12,5% from over 2 Billion € in 2020 to around 2.25 Billion € in 2021. The main segments in the market are medical Imaging equipment, In Vitro Diagnostics (IVD), cardiovascular devices, orthopedic devices and personal protective equipment.

In detail, these systems are located in the public and private sector, as follows:

SYSTEMS                                 Public             Private                        TOTAL

Computed tomography           155                 377                  532

Magnetic resonance imaging  58                   338                  396

PET-CT systems                       7                      7                      14

Digital Mammographs            70                    400                  470

Classical Mammographs         86                    317                  403

Angiography / Cath  Systems 34                    29                    63

Lithotripsy Systems                 10                    10                    20

Linear Accelerators                 30                    16                    46

TOMOTHERAPY system          1                      2                      3

Cobalt systems                        8                                              8

Brachytherapy units               10                    6                      16

Da Vinci Robotic Surgery        1                      7                      8

Γ-camera systems                   52                   137                  189

X-ray systems                          1863                1678                3,541

Bone Density Systems            117                  710                  827

Orthopantographers              78                    748                  826

Ultrasound Systems                1,580               6,500               8,080

Hemodialysis Machines          1,820               1,650               3,470

Ventilators                              2.341              125                  2.466

Anesthesia Machines             1,048              300                  1,348

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