Medical Equipment Manufacturing

Spending on medical devices has increased significantly over the last two decades and employment in the field is expected to remain steady as advances in technology—such as the development of implantable defibrillators and new imaging modalities—create demand for workers. The growing U.S. population—especially the elderly—will increase demand for medical technology. Factors that may cause growth to slow include increasing government regulation and changes to the health care industry (which may influence purchasing trends for medical technology).

The global medical equipment and supplies manufacturing industry was valued at $518.5 billion in 2023, according to Fortune Business Insights, with the United States accounting for nearly 35 percent of the total, at $180.2 billion. Worldwide, revenues were forecast to increase at a compound annual rate of 6.3 percent through 2032, totaling $886.8 billion. In the United States, expansion would occur at a pace that was slightly above the global average, with compound annual growth of 6.6 percent propelling domestic revenues to almost $315.0 billion during the same timeframe. Beyond the United States, other leading markets for medical devices include Japan, Germany, France, the United Kingdom, Italy, and China.

Many medtech companies are expanding into international markets—especially emerging countries such as China, India, and Brazil that have the potential to offer higher profit margins than the United States. Some new devices and technologies become available in Europe or in emerging nations before they are introduced in the United States.

The coronavirus pandemic, which began in Wuhan, China in late 2019, triggered high demand for medical devices in the treatment of COVID-19. This included respirators and ventilators. However, demand and investor enthusiasm slowed as conditions normalized. “Companies in the diagnostics and the research and laboratory equipment segments have experienced a marked slowdown after the pandemic uptick, while other MedTechs are wrestling with issues including slower-than-anticipated uptake of new products and procedures in hospitals and continued challenges to reimbursement rates,” EY noted in a 2024 report.

As the 2020s progressed, technologies like artificial intelligence (AI) were very much at the industry's cutting edge. AI has the potential to make “devices smarter, smaller and more personalized,” according to EY’s 2024 report. One example of a breakthrough product is Medtronic’s GI Genius, which became the first AI-based device to receive FDA approval in 2021, according to Global Banking News. In April 2024, Health & Beauty Close-Up reported that, compared to standard colonoscopies, procedures assisted by AI had demonstrated the ability to reduce missed colorectal polyps by 50 percent.

Beginning in 2023, the medical device industry began experiencing a significant uptick in layoffs. EY’s report indicated that 14,000 jobs were eliminated in the industry between January 2023 and July 2024. This reflected efforts by companies to reduce costs through restructuring and facility closures. In February 2024, MEDTECH DIVE indicated that many industry leaders had eliminated positions, including Baxter, Dexcom, and Zimmer Biomet.

Despite challenges like these, the industry’s future was still bright. EY noted that new products were being approved at a strong pace. This especially was true in the case of devices that incorporated AI. The firm revealed that, in 2023, the FDA’s Center for Devices and Radiological Health authorized the most novel devices in more than 40 years. Products approved through the FDA’s 510(k) process, which allows for clearance of Class II medical devices for sale, totaled a record 3,325, marking the fourth straight year of increases. Additionally, a 77 percent increase occurred in the pre-market approval category.

MD+DI’s 2024 Medtech Salary Survey revealed that median salaries in the medical technology industry totaled $144,750. This reflected an increase of 3 percent from the previous year. The median bonus in 2024 was $13,000. Median salaries for those in general and corporate management roles totaled $178,000, followed by sales and marketing ($170,000), product design engineering ($146,000), research and development ($145,000), quality assurance and quality control ($140,000), regulatory and legal affairs ($122,759), and production and manufacturing ($115,250).

On average, workers in this industry reported working 45 hours per week, according to MD+DI’s survey. However, this varied according to position. For example, those in general and corporate management roles averaged 50 hours per week. Overall, most were very satisfied with their job, resulting in a satisfaction rate of about 97.5 percent. In terms of job security, 66.3 percent felt as secure as they had the previous year, while 13 percent felt more secure, and 20.7 percent felt less secure.

The U.S. Department of Labor (DOL) reports that opportunities for biomedical engineers in the industry will continue to grow. Employment is expected to increase 7 percent from 2023 to 2033, which is faster than the average. In addition to rising demand for biomedical devices and procedures from the aging baby boom generation, employment growth will occur because of new technologies and related applications. Workers with advanced education, technical skills, and experience will have the best job prospects.