Reduced disposable income dried up demand for aesthetic procedures, hurting revenue
Los Angeles, CA (PRWEB) February 23, 2012
The Medical Laser Manufacturing industry will continue to light up as per capita disposable income and consumer sentiment increase as the economy continues to recover. “With more money to spend, Americans will increase their demand for elective procedures that primarily involve medical lasers, such as hair removal and vision correction,” IBISWorld industry analyst Mary Nanfelt said. In addition, as total health expenditure rises, more consumers will receive surgeries and hospitals will increase their purchases of new medical devices, including medical lasers. As a result, industry revenue is expected to increase 6.8% in 2012 to $363.5 million. In the five years to 2012, however, the recession caused a steep decline in consumer sentiment and a drop in disposable income, which resulted in many consumers refraining from paying for discretionary services. Prior to and after the recession, revenue thrived as practitioners increased their use of lasers for heavily demanded services. However, the sharp revenue decline during the recession outweighed this growth, yielding an average annual decline of 0.2% over the past five years.
From 2012 to 2017, the Medical Laser Manufacturing industry is expected to experience further growth. The economy will continue to recover, which will increase consumer sentiment along with disposable income. As a result, more consumers will spend on discretionary procedures performed with medical lasers. In addition, a rise in health spending will result in more hospital purchases of new equipment, Nanfelt said.
IBISWorld estimates that the top four industry participants – Lumenis, EI.En Group, Biolase Technology Inc. and Syneron – will capture most of the total industry revenue in 2012. This represents a moderate level of industry concentration, with no one firm dominating the industry. Census data indicates that over half of the establishments employ fewer than 20 employees. Small operators are common in this type of industry, and typically specialize in developing technology and products for a niche area. Larger players frequently seek to acquire these firms to expand their product range or gain access to a particular technology. The industry has also faced increasing internal competition as more firms enter the industry. During the next five years, the number of industry operators is forecast to increase slowly, though mergers and acquisitions are expected to continue. For more information, visit IBISWorld’s Medical Laser Machine Manufacturing report in the US industry page.
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IBISWorld industry Report Key Topics
This industry develops, produces and markets medical lasers – optical devices that produce an intense monochromatic beam of coherent light. These devices are specifically used for diagnoses, treatment or therapy in healthcare settings, such as hospitals and dentist offices.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.