Good diagnosis: Local innovations and demand from export markets are driving revenue

The Medical and Surgical Equipment Manufacturing industry has grown strongly over the past five years. While most Australian manufacturing industries are declining due to high production costs and import competition from countries with lower operating costs, local industry firms are growing and remaining profitable. Major players such as ResMed and Cochlear, which together account for over 50% of the industry, produce high-tech medical equipment for local and overseas markets. Exports to other OECD countries provide strong growth opportunities for industry operators. More than one-quarter of industry products are exported to the United States, which is the largest healthcare market in the world...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 14-19
5.1%
Forecast Growth 19-24
Profit
Employment
10,648
Businesses
1,733

Industry Threats & Opportunities

  • Australia’s ageing population is boosting demand for medical and surgical equipment
  • ResMed and Cochlear are the industry’s largest players and benefit from overseas supply links
  • Firms are forecast to benefit from greater capital expenditure from private healthcare services
  • Industry Report - Industry Investment Chapter

    A moderate level of capital intensity characterises the industry. In 2018-19, for every dollar invested in capital, an estimated $3.18 is spent on wages. The industry requires highly skilled staff to operate advanced manufacturing equipment, and ensure medical and surgical equipment is made to an extremely high quality. Manufacturers are required to invest in expensive automated equipment, which increases their capital outlay requirements. Automated equipment and machinery typically improves productivity and increase firms’ economies of scale, which in turn reduces marginal costs and improves profit margins.Aside from initial investment, most capital expenditure is a result of firms’ investment in new businesses. Thi...purchase to read more.

    Additional Insights for the Medical and Surgical Equipment Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Medical and Surgical Equipment Manufacturing are:

  • Access to the latest available and most efficient technology and techniques
  • Having links with suppliers
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as US dollars per Australian dollar and Private capital expenditure on machinery and equipment in the Medical and Surgical Equipment Manufacturing industry impact industry performance..

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    What's in this report

    What is the Medical and Surgical Equipment Manufacturing Industry?

    Industry firms primarily manufacture medical, surgical and dental equipment. Firms that mainly manufacture ophthalmic equipment are excluded from the industry.

    Industry Products
  • Medical and surgical instruments
  • Medical and surgical equipment, supplies and appliances
  • Dental equipment and supplies
  • Hearing aids
  • Industry Activities
  • Artificial eye, limb and joint
  • Dental amalgam, instrument, chair, plaster and equipment
  • Pacemaker and respirator
  • First-aid equipment
  • Hearing aid
  • Hypodermic needle and syringe
  • Magnetic resonance imaging equipment
  • Medical diagnostic apparatus, equipment and ultrasound
  • Surgical and electromedical equipment
  • Veterinary instrument
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • US dollars per Australian dollar
  • Private capital expenditure on machinery and equipment
  • Demand from general hospitals
  • Population aged 50 and older
  • Public health expenditure

  • Current Performance
  • Industry structure
  • Export demand
  • Local market
  • Imported products
  • Chart: Revenue Growth

  • Industry Outlook
  • Product innovation and industry participation
  • Ageing population and import competition
  • Table: Medical and Surgical Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Medical and Surgical Equipment Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Practice Medical Services
  • Dental Services
  • Veterinary Services
  • Health Services

  • Key Selling Industries
  • Audio Visual Electronic Equipment Manufacturing
  • Glass and Glass Product Manufacturing
  • Plastic Pipe and Plastic Packaging Material Manufacturing

  • Products & Services
  • Medical and surgical equipment, supplies and appliances
  • Medical and surgical instruments
  • Hearing aids
  • Dental equipment and supplies
  • Chart: Medical and Surgical Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Wholesalers
  • Hospitals and medical practices
  • Chart: Major Market Segmentation for the Medical and Surgical Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Medical and Surgical Equipment Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Medical and Surgical Equipment Manufacturing Industry

  • Industry Globalization
    ResMed Holdings Limited, Cochlear Limited, Baxter Healthcare Pty Limited,
  • Table: ResMed Holdings Limited - financial performance
  • Table: Cochlear Limited - financial performance
  • Table: Baxter Healthcare Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Medical and Surgical Equipment 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 Medical and Surgical Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cochlear Implant
  • A surgically implanted electronic device that provides an artificial sense of hearing through electrical stimulation of the cochlear nerve.
  • Echocardiogram
  • An ultrasound image of the heart.
  • Forceps
  • A surgical instrument that can be used to grab or remove items during surgery.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Medical and Surgical Equipment Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 and Surgical Equipment 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 Medical and Surgical Equipment 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 Medical and Surgical Equipment Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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