The Medical Device Manufacturing industry develops products in about 30 distinct areas, which are now covered in depth by IBISWorld.
Los Angeles, California (PRWEB) September 02, 2011
The Medical Device Manufacturing industry has enjoyed strong revenue growth recently and is forecast to continue expanding in the years ahead, according to IBISWorld, the nation’s largest publisher of industry research. Since 2006, revenue increased at an average annual rate of 16.3 percent to $60.2 billion in 2011, with revenue expected to grow 8.7 percent in 2011 alone. For this reason, IBISWorld has expanded its industry research report collection to cover more industries aimed specifically at products within the growing medical devices industry.
The Medical Device Manufacturing industry develops products in about 30 distinct areas, which are now covered in depth by IBISWorld. The new industry market research reports that are now available for purchase from IBISWorld include: Anesthesia Machine Industry, Artificial Organ Industry, Birth Control Implant Industry, Capsule Endoscope Industry, Condom Industry, Cosmetic Surgery Product Industry, Defibrillator Industry, Dental Finisher & Filler Industry, Dental Laboratories industry, Dental Laser Industry, Dialysis Equipment Industry, Endoscope Industry, Flow Cytometer Machine Industry, Glucose Meter Industry, Hearing Aid Industry, Instrument Sterilization Product Industry, Insulin Pen & Injection Device Industry, Medical Laser Machine Industry, Nebulizer Industry, Orthopedic Prosthetic Industry, Pacemaker Industry, Resuscitation Equipment Industry, Robotic Surgery Equipment Industry, Stent Industry, Syringes & Injection Needle Industry, TENS Machine Industry, Thermometer Industry, Venous Access Devices, Vital Signs Monitor Industry and the Walking Brace Industry.
The US economic downturn did little to deter hospitals and other customers from purchasing medical devices. In fact, the number of companies that gained sales in 2008 and 2009 surpassed the number of those that experienced declines. Behind that growth is the aging US population since the occurrence of health issues that require medical devices is higher in the elderly population. “This demographic will expand further as a percentage of the total population during the five years to 2016, which will help maintain industry growth,” says IBISWorld senior industry analyst Nima Samadi. “By 2016, revenue is forecast to reach $82.1 billion.”
Although revenue is forecast to grow at an average annual rate of 6.4 percent from 2011 to 2016, this rate represents a decline from the previous five-year period. The changing regulatory environment will be the main hindrance. For example, the Patient Protection and Affordable Care Act of 2010 will place an excise tax on medical devices, reducing industry profitability to about 8.5 percent of revenue in 2016, versus 9.0 percent in 2011. Also, potential reform to the approval process for new devices will likely hamper innovation and encourage more companies to shift functions overseas.
Emerging markets such as China and Brazil will attract medical device manufacturers as US customers face more stringent Medicare reimbursement requirements and other cost-cutting pressures. Foreign outsourcing of manufacturing, research and development and other operations, combined with industry consolidation, is forecast to decrease the number of industry operators in the medical devices industry 5.5 percent per year on average to 655 during the five years to 2016. This decline represents a continuation of the consolidation trend that was experienced between 2006 and 2011, when the number of companies decreased 2.8 percent annually on average to 868. Industry employment is projected to stay relatively flat, growing only 0.6 percent per year on average to 90,379 by 2016.
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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