How large is the medical device industry?
Updated: Feb 19
The medical device industry has shown rapid growth in recent years, the diversity of products is so wide and varied that they become indispensable in health care. From bandages, gloves, condoms, to heart valves, stents, orthopedic prostheses, and pacemakers are developed and perfected year after year by medical device companies to meet the high standards of quality and regulations in different countries. It is an industry valued at approximately 828 billion dollars and with enormous growth potential.
During 2019, 50% of total global revenues in the medical device industry have been distributed in 15 companies, which operate in various categories, becoming leaders in the global industry. Its sales reveal consumption trends, geographic data, life expectancy, health spending, diseases with a greater incidence in the population and in the same way, the total investment destined for research and development, as a growing sector becomes attractive for investors.
As a result of this growth, recent years have been characterized by mergers between large companies that strengthen the offer, in order to offer complete solutions to an increasingly demanding market. The consolidation between companies allows a reduction of costs and greater investment in the development of new medical devices.
Next, we will review the most profitable medical device companies today.
Johnson & Johnson
Market value: 385 Billion dollars
Yearly Revenues: 81 Billion dollars
Johnson & Johnson is the largest company in the medical device industry. The medical devices section of this international company is composed of the groups: Global Medical Solutions, Global Orthopedics and Global Surgery.
Among its subsidiaries also stands out Biosense Webster, leader in the production of advanced diagnostic tools, therapy, and cardiac mapping.
Johnson & Johnson and its subsidiaries develop and manufacture products used in various areas of medicine such as orthopedic surgery, cardiovascular surgery, diabetes, vision care, and general surgery. This year its sales grew worldwide by 1.5% and its main contributors had high sales in the areas of visual health, surgery, wound closure, biosurgery, and electrophysiology.
Market value: 156 Billion dollars
Revenues: 30.6 Billion dollars
Medtronic is one of the largest companies in the medical device industry, has more than 85,000 employees in more than 160 countries and has executive offices in Ireland and operational headquarters in Minneapolis. Its implantable devices used in the cardiovascular area stand out, such as the Wide MRITM and Compia MRITM Quad CRT-D or Micra TPS pacemakers.
The company experienced a 1% increase in revenue compared to the previous year's figures and reported growth in all groups and regions. The revenue increases are due in large part to the acquisition of Mazor Robotics, a company specializing in the development of robotic guides for spine and brain surgery. This agreement was carried out at the end of 2018 and provided the company with large revenues in 2019.
Market value: 44 Billion dollars
Revenues: 20 Billion dollars
Philips Healthcare is a diversified technology company that has produced more than 450 products and services. Recently Phillips bought PathXL, a company focused on the analysis of digital pathology images. This acquisition has allowed the company to have great growth in the medical device industry
Market value: 77 Billion dollars
Revenues: 13.6 Billion dollars
Stryker is a US-based medical technology company that develops prostheses for joint replacements, surgical equipment, medical machinery, neurosurgical and spinal devices, among many others. The company had overall revenue growth of 9.3% in 2019, as well as strong growth in the three business segments: orthopedics (5.9%) MedSurg (8.6%) and neurotechnology and spine (18%).
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