The opportunity for power-management companies supplying the medical market is both expanding and evolving. Shipments for high-end imaging equipment are growing as demand from China and other developing countries outstrips slowing growth in the developed world. Meanwhile, consumer-health products grow rapidly as the personal-health-care market develops. This medical electronic-equipment market comprises mostly of imaging systems and consumer-health products, but includes surgical, orthopaedic and dental equipment, and prosthetics. According to new reports from IMS Research, the medical market for AC-DC and DC-DC merchant power supplies is estimated to be worth $460 million. The market for power semiconductors, including power ICs and discrete devices, is estimated at almost $450 million. The market is projected to grow strongly for both power supplies and power semiconductors with a five-year CAGR (compound annual growth rate) of 5 and 6%, respectively. The medical market has historically been slow and steady for both power-supply and power-semiconductor manufacturers, dominated by high-cost, low-volume imaging machines such as ultrasound, MRI, and X-Ray. The high capital expenditure required for this equipment meant that the market was focused in developed regions such as Western Europe, North America, and Japan. Increasing affluence in developing regions has caused greater investment in healthcare, leading to higher demand for power-management products. This growth is balancing the slowdown in developed countries, particularly in Europe, where further healthcare spending cuts are expected due to their projected slower recovery from the recession. One of the fastest growing markets is for consumer medical devices, driven by demand for telehealth gateways. These devices monitor vital signs from a patient in their own home and communicate the data to a central point. They require considerable data processing capability and data connectivity, including wireless. Integrated telehealth services communicate the data to health professionals for analysis. Shipments are projected to grow rapidly as they become more widely adopted over the next few years. In contrast to the large, enclosed power supplies used in medical-imaging equipment, consumer-medical devices generally use external power adapters. This creates an entirely different opportunity that will be more cost driven. It is forecast that this sector will demand almost 90 million power supplies between now and 2016—a large opportunity for power-supply and power-semiconductor manufacturers. Further semiconductor opportunities exist in battery-operated medical equipment. This is a wide market covering products from electric wheelchairs to pacemakers and portable diagnostic equipment. The availability of micro-power standard components suitable for hand-held, battery-powered equipment, developed as a response to the high volumes of consumer portable appliances, facilitates this change. This market is forecast to rise at between 6 and 7% through to 2016. IMS Research/IHS
