Healthcare Products Industry Report Q2 2022

Full Report

Industry Snapshots:

• Healthcare Product Manufacturing
  • Factors that influenced the Medical Device Manufacturing industry over the five years to 2021 such as healthcare reform, technological advancements, outsourcing, regulation and an aging population, will likely continue to drive industry development over the coming years to 2026.
  • The changing demographics of the United States favor the industry. Although the majority of baby boomers are still under the age of 65, a significant portion of the group will cross this age threshold over the five years to 2026, resulting in an expected annualized 3.0% rise in the 65-and-over demographic. Medical innovations will continue to expand the average lifespan, with high-tech fields such as biotechnology and 3D printing likely enabling the development of new therapeutic and diagnostic product lines.
• Healthcare Product Wholesaling
  • Revenue is expected to rise as healthcare providers continue to invest in new equipment to keep up with growing demand for healthcare services. New product development by medical device manufacturers is also expected to contribute to industry growth by offering new solutions to health issues. Mergers and acquisitions among medical device manufacturers will likely cause wholesalers to consolidate to maintain negotiating power and meet demands of newly expanded customers. Consolidation will likely help industry operators reduce costs, leading to a rise in profit margins in the outlook.
  • Product improvements will likely enable new treatments for previously untreatable or ineffectively treated diseases or conditions, and the introduction of a remedy for a previously untreatable condition will cause overall industry demand to rise. Medical device trends are anticipated to facilitate innovation including nanotechnology, the combination of drugs and biologics, less-invasive surgeries and devices and wireless technology for hospitals. Neurological, cardiovascular and orthopedic products will likely represent growth opportunities for medical supplies companies because these products are particularly important to the aging population.