Size of the U.S. medical device industry
In 2014, the United States was the largest target market for medical devices, with an estimated global market share of around 45 percent. In light of citizens’ increased access to health insurance, this industry is projected to grow at an annual rate of 6.6 percent from 2012 through 2017. The most important company within the U.S. medical device industry remains Johnson & Johnson. The New Jersey company is not only known for its medical device and diagnostics products, but also for its pharmaceuticals and consumer products. Johnson & Johnson generated about 74.3 billion U.S. dollars in revenue globally - with just under 35 billion U.S. dollars originating from sales to customers in the United States in 2014. That year, the company raked in around 27.5 billion U.S. dollars in revenue from its medical devices and diagnostics segment, the majority of which was derived from orthopedic device sales.
Johnson & Johnson also invests heavily in research and development, having spent almost 8.5 billion U.S. dollars in 2014. Of the company’s total R&D expenditures, some six percent went to the medical devices and diagnostics segment.