With a stable level of sales, economic momentum remained subdued in the past year. The latest industry survey shows that the diagnostics industry expects 2025 to be a challenging year. In view of the difficult framework conditions, VDGH Chairman Ulrich Schmid is calling for decisive political decisions that will strengthen Germany as a business location and ensure the competitiveness of medical technology.
Stabilization - but no growth spurt
The German market for in-vitro diagnostics (IVD) recorded a sales volume of EUR 2.37 billion in 2024, representing slight growth of 0.6% compared to the previous year. The life science research market in Germany achieved sales of EUR 3.07 billion, but remained 0.3% below the previous year's figure. "The markets are stabilizing above the level before the coronavirus pandemic. However, there is a lack of growth impetus in both sectors," says VDGH Chairman Ulrich Schmid, summarizing the development.
Ambivalent mood - is Germany losing touch?
The industry is increasingly cautious in its assessment of the economic situation: Only a good third of companies still rate their own situation as good or very good - the sentiment barometer shows a drop of four points compared to the previous year. Although 53% of companies expect turnover to increase, growth expectations are declining. There is a clear reluctance to invest in research: The proportion of companies planning to increase their R&D expenditure has almost halved. "A sharp rise in the cost of product approvals on the one hand and restrictive market conditions on the other are hampering the innovative strength of IVD companies," says Schmid.
The assessment of the German domestic market compared to foreign markets is clear: Nine out of ten companies now expect better market development abroad.
IVDR 2.0 - a European reform mandate
The European In Vitro Diagnostics Regulation (IVDR) remains one of the key issues for the industry. A lack of system maturity and an excess of bureaucracy jeopardize the security of supply and the innovative strength of the industry. The VDGH has already addressed specific proposals for a fundamental revision of the regulation. At EU level, there are now signs of a political rethink in favor of a streamlined IVDR 2.0.
Benefits of in-vitro diagnostics
Laboratory diagnostics offers targeted solutions for the major issues of future healthcare - shortage of specialists, ageing population, rigid care structures. One trend-setting development is point-of-care testing, which can be used at the point of care. "Point-of-care testing brings diagnostics to the patient - whether in the doctor's surgery, in the emergency services, in a nursing home or in rural areas. This supports quick decisions and efficient treatment processes," explains VDGH Managing Director Dr. Martin Walger.
MedTech strategy for Germany: cross-departmental and future-oriented
The VDGH is campaigning for a national medical technology strategy that is designed as a joint project between healthcare, research and economic policy. The aim is a coordinated catalog of measures to strengthen the security of supply and Germany as a business location. "With 212,000 employees and a gross value added of 19.6 billion euros, medical technology is the largest sector of the industrial healthcare industry," says Walger. "The medtech sector, and with it the IVD industry, is indispensable for healthcare. It stands for medical innovation, highly qualified jobs and international competitiveness."
The VDGH appeals to the new German government to recognize medical technology as a leading industry and to promote its potential in a targeted manner.
