“Demand for venous access devices has grown as a result of increased public and private health spending, continued innovations and new product introductions,” says Samadi. “These trends will likely continue during the five years to 2016"
Los Angeles, California (PRWEB) October 19, 2011
The outlook for the Venous Access Device Manufacturing industry is positive, with revenue forecast to grow at an average annual rate of 6.4% to $4.5 billion during the five years to 2016, according to IBISWorld, the nation’s largest provider of industry research. The coming years will be shaped by changing demographics, healthcare reform and product innovation. The aging of the population will likely have the most significant effect on demand for medical supplies and instruments. For this reason, IBISWorld has expanded its industry research report collection to include the Venous Access Device Manufacturing industry and other industries within medical devices.
According to IBISWorld analyst Nima Samadi, the $3.3 billion Venous Access Device Manufacturing industry has been resilient during the recession and is forecast to continue growing in the coming years. Revenue is expected to grow 5.3% from 2010 to 2011. However, over the five years to 2011, IBISWorld estimates revenue will increase at a lower average annual rate of 3.6%. “Demand for venous access devices has grown as a result of increased public and private health spending, continued innovations and new product introductions,” says Samadi. “These trends will likely continue during the five years to 2016, with strong average annual growth of 6.4%, which will push revenue to $4.5 billion.”
Continued consolidation will foster part of this anticipated growth. Major players such as C.R. Bard acquired a number of smaller companies during the five years to 2011. The market share of these companies will continue to expand going forward. During the five-year period, the number of companies has declined by 2.7% per year on average to 48, despite sales growth. Consolidation has helped firms sustain profit margins in the face of pricing pressure from customers and government agencies. These larger companies, including C.R. Bard and Baxter International will boost product innovation going forward, as small operators gain access to sizeable research and development (R&D) budgets. The industry is also composed of diversified medical manufacturing companies that often produce other types of devices aside from venous access devices, which include The Cook Group, a US-based privately held company that operates a group of subsidiary medical device firms globally and Becton, Dickinson and Company (BD), a US-based manufacturer and distributor of medical devices and related instrument systems.
Favorable demographics have also supported industry growth. As the population ages, they need more healthcare procedures, which require venous access devices. As people age, they are more likely to need cancer treatment or dialysis for kidney failure, which are major drivers of demand for industry products that are used in their treatment. The Venous Access Device Manufacturing industry has benefited from recent changes in Medicare and Medicaid reimbursements. Infections acquired during hospitalization no longer receive reimbursement, which has encouraged healthcare providers to adopt the use of antimicrobial devices, especially when performing venous access procedures. The higher prices associated with antimicrobial devices have driven industry revenue during the past few years. Power injectable PICCs have also risen in popularity over the period. These recently released ultrasound and tip-location devices, designed to assist with catheter placement, will continue to drive revenue growth over the next five years.
For more information, download the full report from IBISWorld on the Venous Access Device manufacturing industry
Venous Access Device Manufacturing industry Report Table of Contents
About this Industry
Industry at a Glance
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Jargon & Glossary
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