Cardiac arrest: Pacemaker manufacturers have faced intense price pressures from GPOs

As a highly competitive, high-margin industry that produces largely nondiscretionary products, the Pacemaker Manufacturing industry has experienced downstream demand growth, as an aging population, the expansion of healthcare coverage and technological advances bolstered market growth. However, pacemaker manufacturers have faced intense price pressures from group purchasing organizations (GPOs), which have leveraged their large scale to negotiate lower pacemaker prices for major purchasers like hospitals. As a result, industry revenue has declined over the past five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 11-16
-0.8%
Forecast Growth 16-21
Profit
Employment
4,744
Businesses
70

Industry Threats & Opportunities

  • The aging population and rising access to healthcare will spur demand for pacemakers over the next five years
  • The industry has been negatively impacted by reforms of the PPACA
  • The aging population will drive demand for new pacemaker implants
  • Industry Report - Industry Locations Chapter

    The Pacemaker Manufacturing industry's establishments are largely concentrated in the West, Great Lakes, Mid-Atlantic and Southeast regions. Typically, industry manufacturers locate near input commodity manufacturers (e.g. companies that manufacture batteries and leads) and healthcare providers. For example, locating near heart rhythm specialists, or electrophysiologists, is integral for industry operators to cater to this downstream market yet keep distribution costs low. Moreover, pacemaker manufacturers may want to locate their establishments near the elderly population, which has a higher prevalence of bradyarrhythmia and arrhythmia than the general population, spurring demand for pacemakers. Key...purchase to read more.

    Additional Insights for the Pacemaker Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pacemaker Manufacturing Industry are

  • Access to highly skilled workforce
  • Access to the latest technology
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Number of physician visits and Number of adults aged 65 and older in the Pacemaker Manufacturing industry impact industry performance..

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    What's in this report

    What is the Pacemaker Manufacturing Industry?

    This industry manufactures medical devices that use electric pulses to regulate a person’s heartbeat.

    Industry Products
  • Single-chamber atrial pacemakers
  • Single-lead, atrial-sensing ventricular pacemakers
  • Single-chamber ventricular pacemaker
  • Dual chamber pacemakers
  • Industry Activities
  • Fabricating dual chamber pacemakers
  • Fabricating single-chamber ventricular pacemakers
  • Fabricating single-lead, atrial-sensing ventricular pacemakers
  • Fabricating single-chamber atrial pacemakers
  • Researching and developing new pacemakers
  • Marketing and distributing pacemakers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of physician visits
  • Number of adults aged 65 and older
  • Total health expenditure
  • Federal funding for Medicare and Medicaid
  • Trade-weighted index

  • Current Performance
  • Rising domestic demand and product innovation
  • Price pressures and regulatory impediments
  • Import penetration and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Aging population
  • Effects of legislation
  • Regulation and consolidation
  • Downstream pressures continued
  • Table: Pacemaker Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pacemaker Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Medical Supplies Wholesaling
  • Specialist Doctors
  • Emergency & Other Outpatient Care Centers
  • Hospitals

  • Key Selling Industries
  • Battery Manufacturing
  • Electrical Equipment Manufacturing
  • Wire & Spring Manufacturing

  • Products & Services
  • Dual chamber pacemakers
  • Single-chamber ventricular pacemaker
  • Single-lead, atrial-sensing ventricular pacemakers
  • Single-chamber atrial pacemakers
  • Chart: Pacemaker Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Patients with atrioventricular blocks
  • Patients with sick sinus syndrome
  • Patients with atrial fibrillation and bradycardia
  • Patients with bundle branch blocks
  • Chart: Major Market Segmentation for the Pacemaker Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Pacemaker Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pacemaker Manufacturing Industry

  • Industry Globalization
    Medtronic PLC, St. Jude Medical, Boston Scientific Corporation,
  • Table: Medtronic PLC - financial performance
  • Table: St. Jude Medical - financial performance
  • Table: Boston Scientific Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pacemaker Manufacturing 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 Pacemaker Manufacturing Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • Number of adults aged 65 and older (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Single-Chamber Atrial Pacemakers (Scaps)
  • SCAPs typically only have one lead implanted and are generally indicated for patients with chronic atrial fibrillation with concomitant symptomatic bradycardia.
  • Dual Chamber Pacemakers (Dcps)
  • DCPS are used to treat symptomatic bradycardia in people with sick sinus syndrome, atrioventricular block, or both.
  • Group Purchasing Organization (Gpo)
  • An entity that is created to leverage the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members.
  • Single-Chamber Ventricular Pacemakers (Scvps)
  • SCVPs involve the implantation of the pacemaker in the patient's right ventricle. Typically, SCVPs are dispensed to patients that do not require the maintenance of atrioventricular synchrony.
  • Single-Lead, Atrial-Sensing Ventricular Pacemakers
  • Traditionally, SAVPs have featured two leads, which are wires that carry the electric pulse from the pacemaker to the heart. SAVPs are used to treat patients that need to limit the number of leads.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pacemaker Manufacturing 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.

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    This report on Pacemaker Manufacturing:
    • 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 Pacemaker Manufacturing 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 Pacemaker Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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