The medical device industry in the US has witnessed steady growth for decades, and has become one of the most lucrative businesses in the country’s healthcare sector. Today, the US remains the world’s largest medical device market, and is expected to continue leading the global market in the future.
According to the latest figures from the US Department of Commerce, the US medical device industry was valued at US$147.7 billion in 2016, and is expected achieve even greater growth over the next few years, reaching a projected US$173 billion by 2019. With the increase of the aging population, coupled with extended life expectancy and growing healthcare spending; sustainable demand for medical devices in both the domestic and global market is the expected result.
Apart from being the largest medical device producer in the global market – representing over 40% of the global medical device market, the US is also the world’s largest medical devices consumer, with annual imports surpassing US$55 billion. The US Department of Commerce reports that the US’ exports of medical devices in key product categories has exceeded $45 billion since 2015, and this figure has experienced approximately 1.5% annual growth over the recent years. However, the value of imported medical devices has also steadily increased over the past decade, causing a trade deficit.
Currently, there are over 6,500 medical device companies in the United States, mostly small and medium-sized enterprises (SMEs). More than 80% of medical device companies have fewer than 50 employees. Most of the medical device companies are located throughout the country, but are mainly concentrated in regions known for other high-technology industries, such as microelectronics and biotechnology. Some of these leading medical device companies in the US include: Johnson & Johnson, Baxter, Beckman Coulter, Becton Dickinson, Boston Scientific, GE Healthcare Technologies, Medtronic, St. Jude and Stryker Corporation etc.
In the global market, the medical device industry in the US is well-acknowledged for its advanced innovation and high-technology products. This trend is expected to continue as the US still plays a leading role in medical device research and development. A recent industry survey shows that major medical device companies in the US are expected to increase their research and development budgets by approximately 3% through 2020, while the rest of the industry is expected to increase R&D by more than 5% in the same period.
The future of the medical device industry in the US is expected to remain highly competitive in the global market, supported by key drivers that the medical device industry relies on, including growth in: Microelectronics, instrumentation, biotechnology, and software development. Moreover, the International Trade Administration also points out that the global demand for medical devices is being driven by increasing expenditures and initiatives in health care, including the building of new hospitals and clinics, establishment of public health insurance, and greater emphasis on improving the health of the general population. Under these circumstances, the future growth of the medical device industry in the US is projected to be stronger.
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