Strategy in action
A high proportion of revenue from the healthcare education segment is driven by repeat business. Healthcare simulators have a shorter replacement cycle compared to full-flight simulators and need to be replaced more frequently. As the only total solution provider in the healthcare sector, our growing services and long-term staffing agreements also increase our recurring revenue.
Our Healthcare business benefits from both our strong reputation in innovative aviation training and global aviation safety credibility. The global scale, procurement and innovation synergies with our Civil Aviation and Defence & Security businesses increase our competitive advantage in Healthcare. For example, we created a C-130 fixed fuselage trainer equipped with our healthcare patient simulators to enable defence forces to rehearse medical evacuations. Our innovation capabilities and ability to make strategic acquisitions will further strengthen our position in this fragmented market.
We are the leader in the nascent and fragmented healthcare market. The rising demand for competency-based training, along with increasing professional certification maintenance requirements and rapid innovation in healthcare, creates a market experiencing double-digit growth. This global market is valued at $860 million. We are also increasingly helping medical device companies with training for the introduction and implementation of disruptive technologies.
We continue to gain market share in the established North American market. We are also reaching new and emerging markets through more than 65 distributors worldwide. Our continually increasing international sales currently represent more than one-third of revenues.
A confluence of factors is driving simulation-based training in healthcare. These factors include the need to improve patient safety and reduce complications along with the exponential growth in the complexity of medical devices and procedures. Reduced access to real patients for training purposes as well as the pressure to reduce costs and create efficiencies also contribute to the increasingly rapid acceptance of simulation-based training in healthcare.
The business case for simulation-based training in healthcare is compelling. It explains the market’s growing acceptance of simulators. Advances in medical technologies and procedures and the expansion of point-of-care ultrasound continue to increase the demand for clinician training.
Our strong pipeline of product innovations and new partnership agreements will help stimulate the market as will our healthcare leadership and robust aviation safety credentials. We intend to leverage our unique position and key advantages to create sustainable growth in this market.
With a shift to minimally invasive procedures, we are innovating to reduce the risks associated with these new disruptive technologies and procedures. In fiscal 2016, two of our five innovations were in this sector. We are also becoming the partner of choice to medical device companies as we design and deliver simulators to help them lower the risk profile of disruptive procedures.