Includes 12,000 companies with combined annual revenue of about $50 billion.
Large manufacturers include Johnson & Johnson, Baxter, Medtronic, and Boston
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
Demand is driven by population demographics and advances in medical knowledge
The profitability of individual companies depends on the ability to develop
Large companies have economies of scale in manufacturing and research and
Small companies can compete successfully by specializing in a particular market
segment, or through technical innovation. Annual revenue per employee is about
Major product segments are general medical supplies; surgical
instruments; therapeutic devices such as stents, artificial joints, and
pacemakers; and diagnostic equipment.
Low-cost manufacturing efficiency is the main concern of companies that
make low-technology products like latex gloves, tape, gauze sponges, and
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.
The industry reflects the highly specialized medical treatments recently made
Most medical device manufacturers specialize in one area of medicine and
sometimes in just one type of treatment.