Medical and Surgical Equipment Manufacturing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: September 2024
ANZSIC C2412Revenue
$7.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
14,447
Businesses
1,903
Wages
$X.Xbn
Medical and Surgical Equipment Manufacturing in Australia industry analysis
Medical and surgical equipment manufacturers are thriving, with Australia's ageing population and expanding healthcare sector boosting domestic demand for medical and surgical equipment. Sales surged in 2020-21, with revenue rising 31.6% thanks to pandemic-induced demand for medical and surgical equipment like ventilators, infusion systems and renal care products used in intensive care units to treat the virus across private and public hospitals. While demand for these goods strengthened, restrictions on elective surgeries hit sales of other products like dental equipment and hearing aids. Industry revenue is anticipated to have grown at an annualised 5.1% over the past five years and is expected to total $7.7 billion in 2024-25, when revenue will climb by an estimated 3.0%.
Trends and Insights
- The Medical and Surgical Equipment Manufacturing industry has seen significant growth, driven by increased public health expenditure. This rise in funding has enabled manufacturers to expand operations and introduce more advanced products.
- Despite initial disruptions, sales of larger, more expensive medical and surgical equipment have surged thanks to persistent hospital demand. Items like defibrillators, ultrasounds and X-ray machines remain crucial for hospital operations, driving market growth.
- The eastern seaboard states account for the majority of medical and surgical equipment manufacturers. Population spread and access to labour drives manufacturers to operate in these states.
- Manufacturers compete on product price, quality and access to government funding. As funding escalates, so does demand for medical and surgical equipment from downstream markets, including hospitals, general practitioners, private medical practices and dentists.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 5.1 % over the past five years, to reach an estimated $7.7bn in 2024.
Trends and Insights
Demand for medical and surgical equipment spiked at the start of the period
- The pandemic had significant flow-on effects for medical and surgical equipment manufacturing. While sales initially slumped in 2019-20 because of restrictions, stronger public health expenditures fuelled demand for medical and surgical equipment over 2020-21, leading to a sales spike. Ventilators and infusion systems were used in ICUs to treat COVID-19 patients, while COVID-induced acute kidney injury drove sales of renal care products.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
An ageing population will fuel demand
- Australia's ageing population will be a double-edged sword for medical and surgical equipment manufacturers over the next few years. Greater investment in healthcare and medical development will lead to an upswing in the median age of Australia's population. Yet, as Australians age and need more medical assistance, hospitals and medical facilities are set to come under pressure.
Biggest companies in the Medical and Surgical Equipment Manufacturing in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
ResMed Australia | 2,480.0 | |
Cochlear | 420.0 | |
Baxter Healthcare | 400.0 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Medical and surgical instruments, Medical and surgical equipment and Dental equipment. Medical and surgical instruments is the largest segment of the Medical and Surgical Equipment Manufacturing in Australia.
Trends and Insights
Downstream demand is driving sales of medical and surgical equipment
- Medical and surgical equipment includes orthopaedic devices, prosthetic appliances, surgical dressings, catheters, crutches, surgical sutures, defibrillators, centrifuges, blood pressure machines, echocardiogram machines, ultrasounds, trolleys and X-ray machines.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Photographic and Optical Goods Manufacturing in Australia
- Measurement and Other Scientific Equipment Manufacturing in Australia
Complementors
- Pharmaceutical Product Manufacturing in Australia
- Medical and Scientific Equipment Wholesaling in Australia
International industries
- Medical Device Manufacturing in the US
- Medical Instrument & Supply Manufacturing in the US
- Medical Device Manufacturing in Canada
- Medical Instrument & Supply Manufacturing in Canada
- Medical, Surgical and Scientific Equipment Manufacturing in New Zealand
Table of Contents
About this industry
Industry definition
Industry firms primarily manufacture medical, surgical and dental equipment. Product inputs are sourced from upstream manufacturers, with end products sold to downstream wholesalers or directly to hospitals and medical practices.
What's included in this industry?
Medical and surgical instrumentsMedical and surgical equipmentDental equipment Hearing aidsCompanies
ResMed AustraliaCochlearBaxter HealthcarePurchase this report to view all 3 major companies in this industry.
Related Terms
FORCEPSECHOCARDIOGRAMCOCHLEAR IMPLANTIndustry Code
ANZSIC 2412 - Medical and Surgical Equipment Manufacturing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Medical and Surgical Equipment Manufacturing industry has seen significant growth, driven by increased public health expenditure. This rise in funding has enabled manufac...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Despite initial disruptions, sales of larger, more expensive medical and surgical equipment have surged thanks to persistent hospital demand. Items like defibrillators, ultra...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The eastern seaboard states account for the majority of medical and surgical equipment manufacturers. Population spread and access to labour drives manufacturers to operate i...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Manufacturers compete on product price, quality and access to government funding. As funding escalates, so does demand for medical and surgical equipment from downstream mark...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Medical and Surgical Equipment Manufacturing industry is largely fragmented. Almost 50.0% of manufacturers are non-employers, with the bulk of remaining businesses employ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of ResMed Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Cochlear's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Baxter Healthcare's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for ResMed Australia, and factors influencing its performance in the industry
- Description and key data for Cochlear, and factors influencing its performance in the industry
- Description and key data for Baxter Healthcare, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
R&D tax incentive offsets help manufacturers recoup the cost of research and development. Rates vary with annual turnover and level of R&D intensity.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profitability has continued to climb. Public health spending and steady hospital demand have significantly lifted profit margins for medical and surgical equipment manufactur...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Medical and Surgical Equipment Manufacturing industry in Australia in 2024?
The market size of the Medical and Surgical Equipment Manufacturing industry in Australia is $7.7bn in 2024.
How many businesses are there in the Medical and Surgical Equipment Manufacturing in Australia industry in 2024?
There are 1,903 businesses in the Medical and Surgical Equipment Manufacturing industry in Australia, which has grown at a CAGR of 1.0 % between 2019 and 2024.
Has the Medical and Surgical Equipment Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Medical and Surgical Equipment Manufacturing industry in Australia has been growing at a CAGR of 5.1 % between 2019 and 2024.
What is the forecast growth of the Medical and Surgical Equipment Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Medical and Surgical Equipment Manufacturing industry in Australia is expected to grow.
What are the biggest companies in the Medical and Surgical Equipment Manufacturing market in Australia?
The biggest companies operating in the Medical and Surgical Equipment Manufacturing market in Australia are ResMed Australia, Cochlear and Baxter Healthcare
What does the Medical and Surgical Equipment Manufacturing in Australia include?
Medical and surgical instruments and Medical and surgical equipment are part of the Medical and Surgical Equipment Manufacturing industry.
Which companies have the highest market share in the Medical and Surgical Equipment Manufacturing in Australia?
The company holding the most market share in Australia is ResMed Australia.
How competitive is the Medical and Surgical Equipment Manufacturing industry in Australia?
The level of competition is moderate and steady in the Medical and Surgical Equipment Manufacturing industry in Australia.
