Pacemakers and other implantable medical devices represent a large and growing market. This market sector could mean substantial profits to semiconductor and service companies. Many organizations in the electronics industry would like a share of the portable and implantable medical device market, and medical manufacturers may be ready for the kind of technologies the electronics industry can deliver. These include technologies that address factors such as low power consumption, mixed-signal processing, and wireless data transmission. While the growth prospects are good, companies that want to participate in the medical device market will have to make long-term commitments. The medical electronics industry does not tolerate defects in products or service disruptions. Additionally, the industry must meet stringent regulatory requirements from government agencies such as the U.S. Food and Drug Administration. A few very large companies dominate the medical device market. These firms have generally handled their own manufacturing and tend to work with a relatively small number of suppliers. While there is increased utilization of implantable electronic devices, it will take some time before electronics companies can profit from them. According to industry observers, the best chance for mainstream electronics firms to enter the market is offered by serving smaller companies. They also expect that medical device manufacturers will begin to outsource more of their electronics production in the future.