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 8,400 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 8,400 companies with $95 billion in sales and 335,800 employees.
    • The two largest segments of the industry, surgical and medical instruments and surgical appliances and supplies, consist of about 2,800 companies with about $77 billion in sales and 249,500 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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Mar 2, 2024 - Prices, Labor Costs Increase
                              • Medical device manufacturers increased their prices only slightly during 2023 despite continuing inflationary pressure, according to the US Bureau of Labor Statistics (BLS). Employment was stable during the period while wages for nonsupervisory employees increased slightly, according to the BLS.
                              • 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.
                              • Global annual sales of medical devices may increase more than 5% per year and reach around $800 billion by 2030, according to professional services firm KPMG. Medical device manufacturers face many challenges in day-to-day operations, however, ranging from security, regulation, and quality to supply chain instability. McKinsey predicts that various interventions such as remote monitoring, artificial intelligence (AI), and automation can save anywhere between $1.5 trillion and $3 trillion annually for the industry by 2030.
                              • China corporate risk has spread to Western medical device manufacturers, according to Reuters news service. Chinese officials launched in summer 2023 an anti-corruption crackdown on the domestic medical sector that is expected to last a year. Hospitals in the country are now being extra cautious on ordering devices, hurting near-term growth at Western firms like GE Healthcare. About two-thirds of medical devices used by Chinese hospitals and clinics are imported from Western firms, according to BMI analysts.
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