Technological advancements will boost demand for specialized medical courier services
Los Angeles, CA (PRWEB) June 05, 2012
The $6.7 billion Medical Courier industry is expected to perform relatively well compared to general couriers and distributors during the five years to 2012. During this period, revenue is expected to increase 0.6% per year on average. The healthcare sector is generally more resilient to economic downturns than other sectors due to its necessary nature. Nonetheless, industry revenue did decline during the Great Recession, as Americans reduced healthcare utilization and companies and providers consequently limited spending on courier services. Growth has been rebounding in more recent years and is expected to increase 4.1% in 2012, driven by healthcare globalization and technological innovation, according to IBISWorld industry analyst Sophia Snyder. For instance, pharmaceutical companies are progressively conducting clinical trials and manufacturing key ingredients abroad. These activities require medical couriers to safely transport specimens and materials at specified temperatures and within certain timeframes. Improvements in equipment that can successfully transfer medical products and materials have enabled medical couriers to meet the needs of biopharmaceutical manufacturers and healthcare providers.
This technological innovation has been costly. Medical couriers have had to invest in expensive equipment, machines and transportation vehicles. These costs, combined with rising fuel expenses, are expected to pressure profit. Similar trends are forecast to persist in the five years to 2017; however, the economic environment is expected to improve and healthcare utilization will get a boost from the 2010 reform, Snyder says. During the five years to 2017, revenue is forecast to increase. Growth is projected to be low after two years of strong recovery from the economic recession. The health insurance exchange and more generous insurance subsidies are expected to be implemented in 2014 and result in a considerable boon to the industry. Strong growth in upcoming years is expected to cause general couriers to increase their specialized medical service offerings. New companies are also expected to enter the industry, enticed by historical and potential future growth. Consequently, the number of operators is forecast to increase during the five years to 2017. As competition heats up and companies invest more heavily in advanced technologies, profitability is forecast to be pressured further. For more information, visit IBISWorld’s Medical Couriers in the US industry report page.
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IBISWorld industry Report Key Topics
Medical couriers deliver medical equipment to patients and healthcare providers, and they deliver specimens to medical laboratories for testing. Some medical couriers carry donor organs and recipient patients to hospitals. Couriers are distinguished from other medical distributors by features such as speed, security, tracking, specialization and individualization of services. This industry excludes courier companies that do not primarily serve healthcare industries or patients.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.