Cardiology Tech Market To Reach $7 Billion By 2024

International economic research firm, Moody's Investors Service predicts that cardiology device revenues will not only boom but outperform the broader MedTech area over the next four years. According to a recent report, this is being driven by the increasing sales of transcatheter aortic valve replacement (TAVR) devices.

TAVR, also sometimes referred to as transcatheter aortic valve implantation (TAVI) is the "minimally invasive surgical procedure [that] repairs the valve without removing the old, damaged valve. Instead, it wedges a replacement valve into the aortic vale's place."

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Moody's predicts that the global market for TAVR devices is set to double and grow to more than $7 billion by 2024. Conversely, a report from Jefferies a multinational independent investment bank and financial services company showed a steep decline in TAVR sales in December 2019. Though an analyst from the company "cautioned that the December results in their model could be anomalous due to reporting lags and the lack of new centers in their same-store sales model."

In this report, Moody’s forecasts the cardiology market will grow up to 7% annually in the next three years, as opposed to the medical device industry as a whole, which they anticipate will increase by up to 5% annually.

Medical device industry insiders consider TAVR to be “a hot area.” This is likely due to the success of major medical device companies, including Abbott which leads the field in the treatment of mitral regurgitation (otherwise known as a leaky heart valve).

There is however a caveat to this news. Moody’s says not all areas of cardiology will flourish this way. "Mature cardiology categories – including traditional pacemakers and stents – while sizable, have low growth and face pricing pressures," the report read. It also stipulates that devices like the MitraClip as well as companies including Edwards Lifesciences and Boston Scientific will contribute to this upward swing but TAVR will remain the main driver.

Though there is one thing that stands in the way of the sector reaching such heights. Regulatory risks associated with introducing new devices to the market could halt growth in cardiology. While Moody’s is optimistic, Jefferies released a note on the same day as the report warning of “turbulence” in the market.