Insider Monkey
10 Medical Device Stocks for 2021
Fatima Farooq
14 min read

In This Article:

In this article, we will take a look at some of the best medical device stocks for 2021. To skip our detailed analysis on the medical device industry, the impact of the COVID-19 pandemic on the industry, and its future outlook, click to see the 5 Medical Device Stocks for 2021.

The COVID-19 pandemic certainly came out of nowhere and ended up ruining the prospects of many industries across the globe. The airline sector is one example, where up to 46 million jobs were at risk in the previous year because of the spillover effect from the coronavirus pandemic. Most of the other industries and sectors went through the same thing, but during these unprecedented and trying times, the healthcare and medical device industries actually grew beyond our expectations. For example, an industry report released by Fortune Business Insights mentioned that in 2020, the global market size for the medical devices industry was valued at $432.23 billion. This value is expected to grow at a CAGR of 5.4% from 2021 to 2028 to become $657.98 billion.

Despite the above, the medical device sector was also slightly impacted by the outbreak of the pandemic as well. For instance, the pandemic resulted in supply chain disruptions, particularly in 2020, making it harder to distribute medical devices, and since medical procedures became classified into "elective" and "essential" procedures, many of the electives were postponed or canceled entirely, resulting in the industry taking a hit. This hit did take the form of a 3.7% decline in the global medical device market in 2020 but has since become a thing of the past, especially in light of COVID-19 vaccinations becoming accessible and widely distributed across the globe.

Because of the coronavirus pandemic, companies like Becton, Dickinson and Company (NYSE: BDX) are beginning to take the lead in the medical devices sector due to their rapid manufacture and distribution of syringes and needles for the administration of COVID-19 vaccinations across the globe. The global market for disposable syringes alone is due to reach $12.13 billion by 2028, increasing at a CAGR of 5.3%, according to a report by Research and Markets. This growth is unsurprising given statements by the WHO, which claim that around 16 billion injections are administered worldwide in a year, a number likely to ridiculously increase during a pandemic when global vaccinations are becoming more commonplace. For instance, Bloomberg reported on June 23rd that so far, over 2.71 billion vaccination shots have been administered worldwide this year, at a rate of roughly 41.7 million doses in one day. About 319 million of those doses were administered in the US alone.

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