Medical Devices Are The Quiet Growth Sector
The role of medical devices in the practice of medicine is increasing. Many companies are working to improve medical care and reduce costs through innovative designs and product launches. In many cases, companies are working to provide physicians and nurses with the necessary tools to improve their performance and efficiency. Investor opportunities are attributed, in part, to a low barrier of entry for offering improvements to the existing marketplace of devices. There is demand for innovation and growth of technology, which benefits investors wary of more volatile segments like technology and healthcare.
Medical devices encompass a wide variety of products. Examples include a simple tongue depressor used in routine check-ups, knee replacements, and $1 million+ MRI machines found in exclusive hospitals. Medical practitioners have a reputation as highly scrutinous.Nevertheless, the adoption of new medical devices continues to expand in both numbers and capabilities. As defined by the North American Industry Classification System (NAICS) and the U.S. Census Bureau, the medical device industry is a $140 billion industry in the United States, encompassing over 5,800 companies (80% of which have 50 or fewer employees) and employing 356,000 people.
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