| SIC Codes: | 3842 3844 |
| NAICS Codes: | 334517 334510 |
The US electromedical and X-ray apparatus manufacturing industry includes about 700 companies with combined annual revenue of about $32 billion. Major companies include Hologic, Medtronic, St. Jude Medical, Varian Medical Systems, and Zoll Medical, as well as divisions of General Electric and Johnson & Johnson. Both the electromedical and the X-ray apparatus segments are highly concentrated: the 50 largest companies account for about 85 percent and 95 percent of revenue, respectively.
Demand is driven by demographics (the aging US population drives the need for medical products and technology) and the needs of the health care industry. The profitability of individual companies depends on efficient operations and effective marketing. Large companies enjoy economies of scale in marketing and distribution. Smaller companies can compete effectively by developing specialty products. The industry is capital-intensive: average annual revenue per employee is about $435,000.
Major products include MRI, CT, and PET scanners, and X-ray, mammography, ultrasound, fluoroscopy, and nuclear medicine equipment. Other products are pacemakers, electrocardiographs, and electromedical endoscopic equipment.