Instrument Sterilization Product Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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An aging population and continued investment into manufacturing and research and developement will help the industry maintain its pace of growth seen in recent years. Baby boomers are reaching the age where more medical procedures are increasing, thus providing a revenue input from institutions that need to sterilize medical instruments. Healthcare reform will also boost revenue in the future, but profit margins are threatened as the industry loses some pricing power over healthcare providers. For these reasons, industry research firm IBISWorld has added a report on the Instrument Sterilization Product Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Increased health spending and new product developments will continue to drive growth

The $1.3 billion Instrument Sterilization Product Manufacturing industry has been resilient during the recession, and it is forecast to continue growing in the coming years. Revenue is forecast to grow 4.2% from 2011 to 2012, and IBISWorld that estimates revenue will increase at an identical average annual rate of 4.2% over the five years to 2012. Demand for sterilization products has grown as a result of increased public and private health spending, continued innovations and new product introductions. These trends are projected to continue during the five years to 2017.

Favorable demographics have also supported industry growth. As the population ages, they need more healthcare procedures, which require medical instruments and supplies. These instruments and supplies, in turn, will face increased demand for sterilization and sterilization products. According to IBISWorld industry analyst Nima Samadi, these trends will likely continue over the next five years, supporting product development and industry sales. Other long-term trends, such as the rise in total health expenditure have also supported the increase in demand for sterilization products. The industry, however, has faced some challenges due to lower demand from the industrial sector and research and development (R&D) spending. These sectors demand industry products to sanitize and prepare instruments for use in clean rooms and other sterile environments. This is particularly prevalent in the manufacturing sector, where certain products need to be germ and static free. The fallout from the subprime crisis and real estate bubble shattered investor and consumer confidence, causing the production index and R&D budgets to plummet during the recession. The decline in demand led to lower demand from these sectors for instrument sterilization products. However, the economic recovery and rising demand from these sources is expected to result in increased demand for sterilization equipment.

Despite past sales growth, the number of companies in the Instrument Sterilization Product Manufacturing industry has moderately declined 1.3% per year on average to 115 over the five years to 2012. Consolidation has helped firms sustain profit margins in the face of pricing pressure from customers and government agencies. “Though this industry seems somewhat fragmented, concentration has actually been heightened significantly over the past five years as the firms with large economies of scale increased their merger and acquisition activity in order to eliminate some marginal competition and expand their operations in new markets,” said Samadi. For example, 3M acquired Arizant Inc. in September 2010 in a move that helped 3M increase its Health Care segment's product offerings and enhanced their intellectual property portfolio. In addition, the largest companies in this industry benefit from significant brand recognition. They are large, vertically integrated conglomerates that leverage their sheer size in order to maintain lucrative supply contracts with key downstream markets. For more information, visit IBISWorld’s Instrument Sterilization Product Manufacturing report in the US industry page.

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IBISWorld industry Report Key Topics

This industry manufactures products that eliminate or destroy living microorganisms for sanitation purposes.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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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Gavin Smith
IBISWorld
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