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Includes 12,000 companies with combined annual revenue of about $50 billion.
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Large manufacturers include Johnson & Johnson, Baxter, Medtronic, and Boston
Scientific.
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The industry is generally fragmented, with the largest 50 companies holding less
than 60 percent of the market, but concentration can be high within industry
segments.
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Demand is driven by population demographics and advances in medical knowledge
and technology.
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The profitability of individual companies depends on the ability to develop
superior products.
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Large companies have economies of scale in manufacturing and research and
development (R&D).
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Small companies can compete successfully by specializing in a particular market
segment, or through technical innovation. Annual revenue per employee is about
$200,000.
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Major product segments are general medical supplies; surgical
instruments; therapeutic devices such as stents, artificial joints, and
pacemakers; and diagnostic equipment.
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Low-cost manufacturing efficiency is the main concern of companies that
make low-technology products like latex gloves, tape, gauze sponges, and
syringes.
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Technological innovation is the main feature of companies that produce
diagnostic and therapeutic devices and instruments, derived from the
explosive development of medical knowledge and treatment during the last decade.
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The industry reflects the highly specialized medical treatments recently made
available.
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Most medical device manufacturers specialize in one area of medicine and
sometimes in just one type of treatment.
