Yearly checkup: Healthcare reform and the medical device excise tax will change the industry landscape

Over the five years to 2017, IBISWorld expects industry revenue to grow at an annualized rate of 1.4% to total $9.9 billion, including 2.9% growth in 2017 alone. Healthcare reform legislation has brought about a number of new opportunities and challenges, with the medical device excise tax posing one of the biggest threats to the industry. In the coming years, the landscape of California's medtech cluster is anticipated to undergo transformation. Favorable demographic trends stemming from the rising number of senior adults and insured individuals will be boons to industry growth. Industry revenue is forecast to increase at an annualized rate of 2.9% to total $11.4 billion over the five years to 2022...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
1.4%
Forecast Growth 17-22
Profit
Employment
15,672
Businesses
209
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Industry Threats & Opportunities

  • A strong support system of venture capitalists and government funding has contributed to rapid industry growth
  • California attracts venture capital to support life sciences discoveries and medical breakthroughs
  • The aging population will be a boon to industry growth over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Medical Device Manufacturing industry in California is fragmented and highly competitive. IBISWorld estimates that the top four industry players control less than 40.0% of total industry revenue in 2017. Medtronic, Edwards Lifesciences Corp, Abbott Laboratories, Boston Scientific Corporation, CareFusion (subsidiary of Becton, Dickinson and Company) and DexCom are among the leading players driving industry growth in the state. However, despite the prominence of these medical giants, the majority of the industry is composed of small and midsize firms focusing on a specific niche or therapeutic area. For example, DexCom focuses on the development and commercialization of continuous glucose monitoring (CGM) systems for individuals with diabetes...purchase to read more.

    Additional Insights for the Medical Device Manufacturing in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Medical Device Manufacturing in California Industry are

  • Economies of scale
  • Access to highly skilled workforce
  • Access to the latest technology
  • IBISWorld analysts also discuss how external factors such as Total health expenditure and Number of Adults Aged 65 and Older in California in the Medical Device Manufacturing in California industry impact industry performance..

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    What is the Medical Device Manufacturing in California Industry?

    This industry includes manufacturers of electromedical and electrotherapeutic apparatuses in the state of California. The common types of medical devices include magnetic resonance imaging equipment, medical ultrasound equipment, pacemakers, hearing aids, electrocardiographs and electromedical endoscopic equipment. The industry also manufactures irradiation apparatuses and tubes for medical diagnostic, medical therapeutic, research, scientific evaluation and other applications.

    Industry Products
  • Neuromodulation and spinal devices
  • Cardiovascular devices
  • Diabetes devices
  • Other devices
  • Irradiation devices
  • Patient recovery and noninvasive devices
  • Industry Activities
  • Fabricating medical diagnostic and therapeutic apparatus
  • Researching and development
  • Marketing and distribution
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total health expenditure
  • Number of Adults Aged 65 and Older in California
  • Number of People with Private Health Insurance in California
  • Federal funding for Medicare and Medicaid

  • Current Performance
  • Favorable demographic trends
  • Innovation hub
  • Strong Support System
  • Navigating through challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Surging demand spurs innovation
  • Regulatory hurdles
  • Downstream pressures
  • Table: Medical Device Manufacturing in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Medical Device Manufacturing in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Medical Supplies Wholesaling
  • Primary Care Doctors
  • Specialist Doctors
  • Diagnostic & Medical Laboratories
  • Hospitals

  • Key Selling Industries
  • Electrical Equipment Manufacturing
  • Glass Product Manufacturing
  • Manufacturing
  • Plastic Pipe & Parts Manufacturing

  • Products & Services
  • Cardiovascular devices
  • Other devices
  • Irradiation devices
  • Neuromodulation and spinal devices
  • Patient recovery and noninvasive devices
  • Diabetes devices
  • Chart: Medical Device Manufacturing in California Industry Products and Services Segmentation

  • Major Markets
  • Hospitals
  • Distributors
  • Specialist and alternative-care providers
  • Chart: Major Market Segmentation for the Medical Device Manufacturing in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Medical Device Manufacturing in California

  • Basis of Competition
  • Staying innovative
  • Offering competitive prices

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Medical Device Manufacturing in California Industry

  • Edwards Lifesciences CorporationMedtronic PLCAbbott LaboratoriesBecton, Dickinson and CompanyBoston Scientific CorporationDexCom Inc.
  • Table: Edwards Lifesciences Corporation - financial performance
  • Table: Medtronic PLC - financial performance
  • Table: Abbott Laboratories - financial performance
  • Table: Becton, Dickinson and Company - financial performance
  • Table: Boston Scientific Corporation - financial performance
  • Table: DexCom Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Medical Device Manufacturing in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Medical Device Manufacturing in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • No. of senior adults - 65 years and older (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    3D Bioprinting
  • A process of generating items from biological material, wherein cell function and viability are preserved within the printed item.
  • 510(K)
  • Premarket notification for most devices; named for the section of the law that requires these submissions.
  • Electromedical
  • Electrically operated diagnostic and other medical equipment.
  • Neuromodulation
  • The alteration of nerve activity through the delivery of electrical stimulation or chemical agents to targeted sites of the body.
  • Why buy this report?

    IBISWorld’s Medical Device Manufacturing in California Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Medical Device Manufacturing in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Medical Device Manufacturing in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Medical Device Manufacturing in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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