Medical Equipment and Supplies Overview

The aging US population offers strong potential for the medical equipment and supplies industry. The US market for medical equipment & supplies was estimated to be worth approximately $240 billion in 2004. Growing healthcare spending, expected to rise by around 7% in each of the next 10 years, offers a strong basis for optimistic growth predictions concerning the future of the market.

Supplies form the largest part of the industry, accounting for 52% of sales. Cardiology and diagnostics equipment account for a further 10% each, although the optimistic outlook for cardiology equipment could result in the sector accounting for a growing proportion of the market. Orthopedic products are another growth sector, currently at 8% of the market. Other notable segments include laboratory equipment (8%), opthalmology (4%) and respiratory products (3%).

US demand for disposable medical supplies is expected to increase by 5.6% annually to $79.1 billion in 2007. The home healthcare market will be the fastest growing market for disposable medical supplies as consumers explore self-treatment and preventive medicine. However, hospitals will remain the largest and most diverse consumers due to the complexity and product intensive nature of inpatient procedures.

The major players in the US include Boston Scientific, Stryker, Henry Schein, Siemens, GE HealthCare and Zimmer. The industry has seen rapid consolidation in the recent past. Strategic alliances amongst various players have also led to streamlining of operations and better focus on core operations.