Renewed U.S. Device Tax One More Reason for European Device Sales

Press Release
Jan 4, 2018
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Rockville (MD), January 4, 2018 — Sales of medical devices by U.S. firms to Europe are not subject to the recently renewed medical device tax, one more reason for a positive outlook on medical device sales there. This according to healthcare industry research firm Kalorama Information. Kalorama says The European market for medical devices was estimated at $104 billion in 2017. With average 3.4% growth over the next five years. Kalorama Information's study, European Medical Device Markets (Germany, France, United Kingdom, Italy, Spain, Switzerland, Sweden, Poland, Other Markets) cites a boom in hospital spending along with the tax as factors boosting European device market. The report breaks out specific country markets and markets for specific types of devices, such as catheters, X-ray machines, medial beds and surgical equipment.

The 2.3% tax on sales of medical devices was passed as part of the Affordable Care Act in 2010. It was assumed that the tax would fade with heavy lobbying from the device industry and an industry-friendly administration. Congress suspended the tax for 2016 and 2017 with the widespread expectation that it would be permanently abolished before 2018. But various GOP efforts to repeal the Affordable Care Act and the taxes associated with it failed, and the tax cut bill recently signed by President Trump didn't get around to it.

“We were surprised that it happened but it was attached to the numerous attempts to repeal the ACA and Congress didn’t get around to separate legislation on it,” said Bruce Carlson, Publisher of Kalorama Information. “Until they do, expect device companies to target European and other markets.”

Other observations of the report on the included:

  • 15 Companies represent half or the European market - $49 billion. J&J and Medtronic are the largest of these.

  • Growth has increased for 2017 due to higher prices for advanced devices and an increase in capital budgets for hospitals and acute clinics.

  • The German device market is the largest market.

  • Acquisitions drove growth. There were 225 significant device market mergers and acquisitions since 2015. In total, this amounts to the exchange of more than $215 billion over the 2.5 years.

"Growth is stable and increasingly climbing; expect a slow rate of growth the next two years and increasing revenue growth as European markets make strides in healthcare delivery and economic recovery becomes visible later in the forecast period," said Bruce Carlson, Publisher of Kalorama Information.

European Medical Device Markets is available from Kalorama Information.

About Kalorama Information

Kalorama Information, a division of, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama’s website and are also available on and

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