After facing a decline in sales upon the postponement of elective surgeries during the pandemic, the medical devices industry witnessed a rebound in demand last year upon solid progress on the vaccination front and growing demand for critical surgical procedures. This, along with continued product innovations, integration of new technologies for enhanced precision and accuracy, and robotic assistance in operating rooms, positions the industry well for solid long-term growth.
Investors’ interest in this space is evident from the iShares U.S. Medical Devices ETF’s (IHI) 7.8% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 5.5% returns. The global medical devices market is expected to grow at a 5.4% CAGR to reach $657.98 billion by 2028.
