The Zacks Medical – Products industry's revenues are expected to continue its growth trajectory on the back of the recovery in demand for surgeries and procedures, new products and expansion into new markets. An earlier-than-expected demand for respiratory products is also boosting sales. The industry players are raising prices of their products and services to cope with the higher costs, thereby benefiting the top and bottom lines. However, the company continues to face challenges due to supply-chain constraints, increased material costs and a shortage of workers in certain markets. Although the companies have seen a sales recovery in the past few quarters, the ongoing headwinds hurt margins. The lower demand for COVID-19-related products is having a negative impact on revenues. The budgetary constraints in U.S. hospitals and a soft Chinese market are impeding revenue growth. Industry participants like Boston Scientific (NYSE: BSX), ResMed (NYSE: RMD), Lantheus (NASDAQ: LNTH) and Haemonetics (NYSE: HAE) have adapted to changing consumer preferences, and the majority of them are witnessing a rise in share price. These companies also carry a favorable Zacks Rank. Industry Description The industry includes companies providing medical products and cutting-edge technologies for healthcare services. These companies are primarily focused on research and development and cater to vital therapeutic areas like cardiovascular, nephrology and urology devices. The recovery in the procedure volume is benefiting sales, especially that of surgery products and services. Meanwhile, cost-cutting initiatives are helping the companies to improve their bottom-line performance. However, supply-chain disruption amid ongoing wars continues to persist, affecting the availability of certain materials used to develop medical-related products like semiconductor chips. The inflationary pressure and labor shortages weigh on the industry players' gross and operating margins. The trend is likely to persist in 2024, albeit weaker. Major Trends Shaping the Future of the Medical Products Industry AI, Medical Mechatronics & Robotics: The rising adoption of minimally-invasive robot-assisted surgeries, self-automated home-based care, use of IT in facilitating quick and improved patient care, and the shift of the payment system to a value-based model underscore the growing influence of AI in the Medical Products space. In fact, mechatronics — a high-end technology incorporating electronics, machine learning and mechanical engineering — is rapidly becoming a defining characteristic of the space. Several companies have shown substantial prowess in AI, robotics and medical mechatronics. Advancements in robot-assisted surgical platforms continue to be crucial with respect to minimally-invasive surgeries that help reduce the trauma associated with open surgery. With respect to Mechatronics, the benefits of the same have been demonstrated in the form of 3D printing, which has altered the face of the medical devices industry. Currently, 3D printing is being used to print stem cells, blood vessels, heart tissues, prosthetic organs and skin. Rising Demand for IVD: The COVID-19 pandemic led to a rise in global demand for diagnostic testing kits in order to curb the spread of the virus. Testing became the need of the hour and led to a shift in the pipeline of IVD products, with a large number of rapid, point-of-care devices going into development. Diagnostic kit-makers not only received emergency use authorization from the FDA but also bolstered production to aid testing shortages. The industry players anticipate significant demand for rapid diagnostic testing in the future as well and are poised to capitalize on the same. Emerging Markets Hold Promise: Given the rising medical awareness and economic prosperity, emerging economies have been witnessing solid demand for medical products. An aging population, ...