Medical Device Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,260 medical device manufacturers in the US produce a range of products designed to diagnose and treat patients. Medical devices range in nature and complexity from simple tongue depressors and bandages to complex programmable pacemakers and sophisticated imaging systems. The key products include surgical appliances and supplies, surgical and medical instruments, electro-medical equipment, in-vitro diagnostic substances, irradiation apparatuses, dental-related products, and ophthalmic goods.
Challenges of Complex Regulations
Medical devices are subject to extensive regulation in the US by the FDA, and by comparable government agencies in other countries.
Developing New Hybrid Technologies
New hybrid technologies that incorporate pharmaceutical products with traditional medical device products are becoming popular.
Industry size & Structure
A typical medical device manufacturer generates $11 million in annual revenue and has fewer than 10 employees.
- The overall medical device manufacturing industry consists of about 8,260 companies with $92 billion in sales and 334,200 employees.
- The two largest segments of the industry, surgical and medical instruments and surgical appliances and supplies, consist of about 2,760 companies with about $76 billion in sales and 248,700 employees. These segments are the primary focus of this profile.
- The states with the highest number of medical device companies include California, Florida, New York, Texas, Illinois, Indiana, Pennsylvania, Ohio, North Carolina and Minnesota.
- Major US medical device companies include Medtronic, GE Healthcare Technologies, Johnson & Johnson, Boston Scientific, Baxter, Becton Dickinson, Beckman Coulter, Abbott Labs, and Stryker Corporation.
Industry Forecast
Medical Device Manufacturers Industry Growth
Recent Developments
Jul 13, 2024 - Average Wages Increase
- Medical device manufacturing industry employment decreased slightly during the first five months of 2024 while averages wages for nonsupervisory employees increased slightly, according to the US Bureau of Labor Statistics (BLS). Medical device manufacturers increased their prices only slightly during the first five months of 2024, according to the BLS.
- Medical device manufacturers are seeking joint ventures to ensure that sustainable materials are used in packaging designs, according to Packaging Digest. Firms including Becton, Dickinson and Company (BD) and Abbott use sustainability ratings services to assess and improve supplier sustainability and ethical practices. Simplifying processes and early supplier engagement help reduce costs and build resilient supply chains in medical packaging. “As we’ve faced different challenges [such as] labor shortages, inflation, material qualifications, and a shortage of raw materials, we want to continue to invest more in strategic supply relationships to problem-solve,” said Preethi Kasthuri, director of global procurement at BD.
- Medical device manufacturers are using artificial intelligence (AI) to accelerate product development by rapidly generating multiple design prototypes, according to Forbes. The capability dramatically accelerates the design process, enabling a shift from years to months in developing new medical devices. Use of AI in medical device design is also expected to allow firms to create customized, patient-specific devices by incorporating detailed data from patient scans and medical histories in the design process. This hyper-personalization may revolutionize patient care, offering devices that are not only more effective but also significantly reduce the risk of complication and reduce recovery time.
- Available data on cybersecurity incidents in hospitals do not show that medical device vulnerabilities have been common exploits, according to the US Department of Health and Human Services (HHS). HHS maintains, however, that such devices are a source of cybersecurity concern warranting significant attention, and they can introduce threats to hospital cybersecurity. Food and Drug Administration (FDA) authority over medical device cybersecurity has recently increased due to heightened cybersecurity concerns: December 2022 legislation requires medical device manufacturers to submit to the FDA, among other things, their plans to monitor, identify, and address cybersecurity vulnerabilities for any new medical device that is to be introduced to consumers starting in March 2023. This legislation is limited to new devices and does not retroactively apply to those devices introduced prior to March 2023, unless the manufacturer is submitting a new marketing application for changes to the device.
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