The Medical Device Market Today

Originally Published September 1999

MARKET ANALYSIS

Tracy A. Schaaf

The U.S. medical device and supplies market, valued at more than $61 billion in 1998, is composed of a myriad of market segments devoted to the diagnosis and treatment of virtually every disease or disorder that can affect the human body. The United States is among the top three markets for medical devices, followed by Europe and Japan, which had approximately $39 billion and $21 billion in 1998 sales, respectively. The total worldwide market reached $145 billion last year; thus, U.S.manufacturers control approximately 42% of the world market for these devices.

Despite continuing pressure to contain costs, reimbursement challenges, mergers and acquisitions, and the economic crisis in Asia, the U.S. market for these products is growing at a 6% compound annual growth rate. According to the Health Industry Manufacturers Association (HIMA), this growth appears to be sustainable for at least the next two years.