Is Medtronic bigger than Stryker?

Comparing the Size and Scale of Medtronic and Stryker

Medtronic and Stryker are two of the largest and most influential medical device companies in the world. Both companies have a long history of innovation, growth, and success in the healthcare industry. However, when it comes to comparing the size and scale of these two giants, which one comes out on top? In this article, we will take an in-depth look at Medtronic and Stryker, examining their revenues, market share, employee count, and other key metrics to determine which company is bigger.

Company Overview

Before diving into the specifics, let’s take a brief look at each company’s background and history.

Medtronic

Medtronic was founded in 1949 by Earl Bakken and Palmer Hermundslie in Minneapolis, Minnesota. The company initially focused on repairing medical equipment but soon began developing its own medical devices. Medtronic’s first major innovation was the battery-powered, wearable cardiac pacemaker, which was introduced in 1957. Since then, the company has expanded its product portfolio to include a wide range of medical devices and therapies, including those for cardiac and vascular diseases, diabetes, neurological disorders, and more.

Stryker

Stryker was founded in 1941 by Dr. Homer Stryker, an orthopedic surgeon from Kalamazoo, Michigan. Dr. Stryker invented several innovative medical devices, including the turning frame, which helped prevent bedsores in bedridden patients, and the cast cutter, which made it easier to remove casts. The company initially focused on orthopedic products but has since expanded its offerings to include a variety of medical and surgical equipment, neurotechnology, and spine products.

Revenue Comparison

One of the most straightforward ways to compare the size of two companies is by looking at their revenues. In this section, we will examine the revenue figures for Medtronic and Stryker over the past few years.

As evident from the table, Medtronic has consistently generated higher revenues than Stryker over the past four years. In 2020, Medtronic’s revenue was approximately twice that of Stryker’s, at $28.9 billion compared to $14.4 billion.

Market Share and Industry Presence

Another important factor to consider when comparing the size of Medtronic and Stryker is their market share and industry presence. Both companies operate in multiple segments within the medical device industry, and their market share varies depending on the specific product category.

According to a report by Medical Device and Diagnostic Industry (MD+DI), Medtronic is the largest medical device company in the world, with a market share of approximately 7.5% in 2020. Stryker, on the other hand, held a market share of around 4.2%, making it the third-largest medical device company globally.

In terms of specific product categories, Medtronic holds a strong position in the cardiac and vascular, minimally invasive therapies, restorative therapies, and diabetes segments. Stryker, meanwhile, is a leader in orthopedics, neurotechnology, and spine products.

Employee Count

The number of employees a company has can also provide insight into its size and scale. As of 2020, Medtronic employed approximately 90,000 people worldwide, while Stryker had a global workforce of around 40,000 employees.

This significant difference in employee count further demonstrates Medtronic’s larger size compared to Stryker.

Research and Development Investment

Investing in research and development (R&D) is crucial for medical device companies to stay competitive and drive innovation. Both Medtronic and Stryker allocate substantial resources to R&D, but how do they compare in terms of investment?

In 2020, Medtronic invested approximately $2.5 billion in R&D, while Stryker’s R&D investment was around $1.1 billion. This higher investment by Medtronic reflects its larger size and commitment to innovation across its diverse product portfolio.

Acquisitions and Partnerships

Both Medtronic and Stryker have grown through strategic acquisitions and partnerships over the years. These transactions have helped the companies expand their product offerings, enter new markets, and strengthen their competitive positions.

Some notable acquisitions by Medtronic include:
– Covidien (2015) – $49.9 billion
– Mazor Robotics (2018) – $1.6 billion
– Medicrea (2020) – $200 million

Stryker has also made significant acquisitions, such as:
– K2M Group Holdings (2018) – $1.4 billion
– Wright Medical Group (2020) – $4.0 billion
– OrthoSensor (2021) – undisclosed amount

While both companies have been active in acquisitions, Medtronic’s larger scale has allowed it to pursue more substantial transactions, such as the $49.9 billion acquisition of Covidien in 2015.

Conclusion

Based on the analysis of revenue, market share, employee count, R&D investment, and acquisitions, it is evident that Medtronic is larger than Stryker. Medtronic’s revenue is approximately twice that of Stryker’s, and it employs more than double the number of people worldwide. Additionally, Medtronic holds a larger market share in the global medical device industry and invests more in R&D.

However, it is important to note that both Medtronic and Stryker are highly successful and influential companies in the medical device industry. They both have a strong presence in their respective markets and continue to drive innovation and growth through strategic acquisitions and partnerships.

Frequently Asked Questions (FAQ)

1. What are the main products offered by Medtronic and Stryker?

2. Medtronic offers products in cardiac and vascular, minimally invasive therapies, restorative therapies, and diabetes segments. Stryker focuses on orthopedics, neurotechnology, and spine products.

3. How does the market share of Medtronic compare to Stryker?

4. In 2020, Medtronic held a market share of approximately 7.5% in the global medical device industry, while Stryker’s market share was around 4.2%.

5. Which company invests more in research and development?

6. Medtronic invests more in R&D than Stryker. In 2020, Medtronic invested approximately $2.5 billion in R&D, while Stryker’s R&D investment was around $1.1 billion.

7. Have both companies grown through acquisitions and partnerships?

8. Yes, both Medtronic and Stryker have made strategic acquisitions and partnerships to expand their product offerings, enter new markets, and strengthen their competitive positions.

9. Does the size difference between Medtronic and Stryker mean that one company is better than the other?

10. Not necessarily. While Medtronic is larger than Stryker, both companies are highly successful and influential in their respective markets. They both continue to drive innovation and growth in the medical device industry.