The category defined as Medical Devices or Medical Equipment is a broad one. The U.S. Department of Commerce assigns 5 NAICS codes to this market, and digging into the specifics of each classification reveals several sub sectors and categories. According to 2012 estimates, the United States market size for medical devices and equipment stands at $110 billion, and U.S. exports of such products were valued in excess of $44 billion. The United States enjoys a tremendous advantage in this industry over other nations largely due to its advanced R&D capabilities in both the public and private sectors. Based on data from the United States Bureau of Census covering several NAICS codes, here are the top seven export markets for U.S. manufactured medical devices and equipment for 2014:
7. China – 2014 Medical Devices & Equipment Exports – US$1,520,069.00
It’s rare that China is not at the very top of a list of export or import markets, especially where it comes to trade with the United States. Nonetheless, with a burgeoning population, China’s potential as a market for U.S. made medical devices and equipment will remain strong for years to come. The sub sector of “Surgical and Medical Instruments” stands out as the largest category of U.S. exports to China at $762,943,000 in 2014.
6. Germany – 2014 Medical Devices & Equipment Exports – US$2,267,567.00
Europe’s largest economy offers exporters of Medical Devices and Equipment a strong, stable environment for international sales. While the current strength of the U.S. Dollar against the Euro may pose some short term challenges, higher value products from the United States will continue to enjoy demand and a trade friendly environment in Germany well into the future.
5. Mexico – 2014 Medical Devices & Equipment Exports – US$2,281,228.00
As we highlighted in a recent post, Mexico is a great trading partner for the U.S. as it serves as a source of two way trade. Surgical equipment, appliances and supplies accounted for nearly 55% of U.S. medical equipment exports to Mexico in 2014.
4. Belgium – 2014 Medical Devices & Equipment Exports – US$3,405,914.00
One of 3 European markets on this list, Belgium has long been a standout market for U.S. made medical equipment. Surgical instruments, appliances and supplies alone represent an annual export opportunity of $3.3 billion for U.S. companies.
3. Japan – 2014 Medical Devices & Equipment Exports – US$3,560,670.00
Japan ranks as the fourth largest market for U.S. exports as we detailed in a recent post here on the Exporting Excellence™ blog. According to some measurements, it may even be the biggest export market for U.S. made medical devices. As home to an aging population and a culture uniquely devoted to caring for its elderly, Japan will continue to be a source of export growth for U.S. manufacturers of medical devices and equipment for years to come.
2. Canada – 2014 Medical Devices & Equipment Exports – US$3,564,214.00
America’s largest export market overall stands to see a similar standing across specific industry segments as well. Canada offers U.S. medical equipment manufacturers a diverse market, as no specific subgroup of medical devices and equipment accounts for more than 39% of the aggregate exports of this commodity.
1.The Netherlands – 2014 Medical Devices & Equipment Exports – US$3,929,604.00
Despite a strong presence in the global pharmaceuticals marketplace, The Netherlands looks abroad for its medical equipment and device needs and the U.S. has been the primary beneficiary of this search. As with all European markets, an aging population has a strong impact on domestic demand for healthcare related products. As we mentioned with Germany, current strength of the U.S. dollar may cause a short term decrease in sales opportunities, however medical goods tend to be better protected from such market events due to necessities. U.S. exporters would be well served by focusing on this market as part of their future international sales strategy.
There are several other major markets that didn’t make the top seven list here based on specialization. For example, the category described as Opthalmic Goods enjoys strong demand in Australia, France and the United Kingdom. Similarly, “Dental Lab Products” enjoy strong demand and growth in Italy and Spain. Newer or smaller volume exporters should consider developing sales in Saudi Arabia, Singapore and Switzerland all of which offer strong demand for all categories of U.S. medical devices and equipment, but do not have the scale that comes with the top seven markets in this list.
Irrespective of the market or category, a capable logistics service provider is required to facilitate the shipment and overseas delivery of goods such as medical devices and equipment. From domestic compliance to international customs clearance, Crescent Air Freight offers the depth of expertise and skill to meet the demands of exporters while maintaining focus on reducing the hidden costs and inefficiencies that can come with the process. We look forward to assisting your business in its international expansion today and for the long haul.