Cutting edge: An appreciating loonie is expected to dampen the industry's export potential

The five years to 2019 have been a mixed bag for the Medical Device Manufacturing industry in Canada. Despite the indispensable nature of medical devices, recent rises in total health expenditure and the depreciating Canadian dollar were a boon for manufacturers, many of whom depend on export markets. Still, many large industry operators closed underperforming plants, and some international companies have avoided entering the Canadian medical devices market due to regulatory scrutiny. Driven by cost containment and reduction practices across the sector, healthcare providers have sought competitive pricing in recent years to cut costs and manage more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Recent rises in total health expenditure and a depreciating Canadian dollar were a boon for manufacturers
  • Growth in Canada’s total health expenditure has slowed in recent years
  • Cost-cutting measures will hamper profound growth in employment
  • Industry Report - Industry Investment Chapter

    The Medical Device Manufacturing industry in Canada is characterized by a low level of capital intensity. For every $1.00 spent on wages, $0.08 is expected to be invested in capital improvements in 2019, a proportion that has remained stable during the current period. Medical device manufacturers produce a range of products for highly specialized applications. Not all products can be manufactured on an automated production line, so the need for hands-on work increases labour costs relative to machinery. Moreover, skilled specialists are needed to research and develop medical devices, and these employees command salaries well above the manufacturing sector’s average wage. In 2019, wages account for nearly 25.0% of revenue, keeping capital intensity low...purchase to read more.

    Additional Insights for the Medical Device Manufacturing Industry

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

  • Access to highly skilled workforce
  • Access to the latest available and most efficient technology and techniques
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Total health expenditure and Number of adults aged 65 and older in the Medical Device Manufacturing industry impact industry performance..

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    What's in this report

    What is the Medical Device Manufacturing Industry?

    This industry primarily comprises manufacturers of electromedical and electrotherapeutic apparatus, such as magnetic resonance imaging equipment, medical ultrasound equipment, pacemakers, hearing aids, electrocardiographs and electromedical endoscopic equipment. The industry also manufactures environmental controls and regulators, signal testing apparatus, drafting instruments, industrial process control instruments and surveying and geophysical instruments.

    Industry Products
  • Cardiovascular and respiratory devices
  • Surgical devices
  • Spinal devices
  • Diabetes monitoring devices
  • Medical and industrial diagnostic devices
  • Industry Activities
  • Researching and developing medical, diagnostic and therapeutic apparatus
  • Fabricating medical, diagnostic and therapeutic apparatus
  • Marketing, distributing and selling medical, diagnostic and therapeutic apparatus
  • Manufacturing measuring, regulating and controlling apparatus for industrial use
  • 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
  • Research and development expenditure
  • Canadian effective exchange rate index

  • Current Performance
  • Demographics drive demand
  • Consolidation and development
  • Exports boost profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Competitive advantages
  • International trade and harmonization
  • Table: Medical Device Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Medical Supplies Wholesaling in Canada
  • Primary Care Doctors in Canada
  • Specialist Doctors in Canada
  • Hospitals in Canada

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

  • Products & Services
  • Cardiovascular and respiratory devices
  • Other
  • Medical and industrial diagnostic devices
  • Surgical devices
  • Spinal devices
  • Diabetes monitoring devices
  • Chart: Medical Device Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports to the United States
  • Exports to all other countries
  • Other
  • Hospitals and other health institutions
  • Physicians and private healthcare offices
  • Chart: Major Market Segmentation for the Medical Device Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    Profit PurchasesWagesResearch and developmentOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Medical Device Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Medical Device Manufacturing Industry

  • Industry Globalization
    Medtronic plc,
  • Table: Medtronic plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Medical Device 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 Device Manufacturing Industry
  • 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)
  • Total Health Expenditure (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A popular trend within retail and manufacturing industries where producers supply goods directly to customers, eliminating the middleman.
  • Electromedical
  • Electrically operated diagnostic and other medical equipment.
  • Irradiation Devices
  • Devices that use X-rays, beta rays or gamma rays for diagnosis and treatment applications.
  • Magnetic Resonance Imaging (Mri)
  • Medical imaging technique most commonly used in radiology to visualize the internal structure and function of the body.
  • Neuromodulation
  • The alteration of nerve activity through the delivery of electrical stimulation or chemical agents to targeted sites of the body.
  • What Our Customers Say

    Why buy this report?

    The Medical Device Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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

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