According to a report released November 2021 by the Department of Commerce’s International Trade Administration, Germany has a very robust and well established medical equipment market and claims the third largest medical technology market in the world after the U.S and Japan.
All major suppliers to name a few such as GE healthcare, J&J, Abbott, Thermo Fisher Scientific, McKesson, Cardinal Health have subsidiaries in Germany. According to (Medtech Europe, Facts & Figures 2021,) the U.S medical device exporters continue to hold a 30% share of the German import market.
Key industry drivers in Germany include the power of innovation, a solid financial basis of the industry, and a vibrant startup scene, which are all based on a strong German economy and commitment to a high quality health system.
The Healthcare/Life Sciences (HCT) industry includes health IT. The German Health Ministry and their Health Innovation Hub are implementing the Digital Care Act and digital health solutions called DIGA. DIGA Fast Track is Germany’s path for digital health solutions to reach over 75 million German citizens insured under mandatory health insurance.
The German Health Ministry’s subordinate agency, The Federal Institute for Drugs and Pharmaceuticals, the German equivalent to the U.S. FDA, is taking online applications for DIGAs and once approved as a medical app, DIGAs can be prescribed by any German physician.
The Hospital Future Act allows German hospitals to speed digitalization and remain competitive globally. So far, there has been an innovation gap in the German hospital sector because of the lack of focus for digitalization among German health policy makers and hospital management for years and there is still an insufficient number of dedicated digital solution providers. This market is especially penetrable for U.S digital solution providers.
For example, a procurement involving a hospital that might work out well for U.S. companies is if North Rhine-Westphalia’s Public Hospitals decides to reorganize their system and also reconstruct and upgrade existing facilities. For a four year period, U.S companies might have the opportunity to participate in consortia or as sub-contractors.
The strong German med technology clusters develop telehealth and telemedicine solutions and form clusters for oncology, neurological disorders, and chronic disease management in cooperation with hospitals and industry.
The German government’s medical informatics initiative aims at improving medical R&D and patient care through innovative IT solutions for specific applications and integrated health data centers. This multi-million dollar funding resource should pose opportunities for Machine to Machine communication, mHealth/apps, along with big data applications.
NIH plans to promote clinical study capabilities and resources to innovative German and European life science startups during BioEurope, a road show and virtual events in 2022. Combining the resources of NIH along with the networks of the German life science cluster, it is expected that this partnership could bring the most innovative and brightest solutions to the U.S market.
Go to https://www.trade.gov/knowledge-product/Germany-healthcare for the report on Germany’s Healthcare and Medical Technology Market.