Los Angeles, CA (PRWEB) June 13, 2012
The Hot and Cold Topical Therapy Manufacturing industry has been resilient during the five years to 2012, with revenue expected to increase 2.1% annually on average to $1.3 billion during the period. According to IBISWorld industry analyst Sophia Snyder, “This moderate revenue growth has mainly been due to product advancements, the aging population and regulatory standards that require the use of certain industry products.” Guidelines for professional use of certain industry products were put in place in 2005, but more physicians have been following the recommendations during recent years, which has enhanced demand. Additionally, the Centers for Medicare and Medicaid implemented standards to use certain hot and cold therapies in 2009. More research continues to be conducted to demonstrate the treatment and cost benefits of hot and cold therapies for use in professional (i.e. hospital) settings and by individual users.
The Great Recession reduced disposable income, which in turn curbed spending among consumers on hot and cold topical therapies that are used for home-based and self-provided care. In contrast, the professional healthcare market grew during the recession. Hot and cold therapies have been shown to lower total costs in this market by reducing infections and other complications. As healthcare providers looked for methods to reduce spending during the recession, says Snyder, the industry's progressively effective products grew in appeal. In 2012, the Hot and Cold Topical Therapy Manufacturing industry is expected to get a boost from the combination of the improving economic environment and continuing cost pressures in the provider market. During the year, growth is expected to accelerate to 2.5%. The top three players in the industry – Stryker Corporation, CR Bard Inc. and Zoll Medical Corporation – together account for less than a quarter of this fragmented industry's revenue.
The aging population and rising disposable income is forecast to bolster demand during the five years to 2017; during this time, revenue is projected to grow. Meanwhile, the professional healthcare market is forecast to pressure prices for industry products as hospitals and other providers move toward larger practices. This trend will encourage further consolidation within the industry, as larger manufacturers will be better equipped to negotiate with bigger healthcare providers. During the five years to 2017, the number of operators is forecast to decrease. Despite consolidation, industry profitability is forecast to decrease slightly due to the implementation of a medical device tax on many industry operators as part of healthcare reform legislation. For more information, visit IBISWorld’s Hot and Cold Topical Therapy Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures devices, including pouches and sacks, that provide therapy for issues like arthritis, cold tumors, poliomyelitis, pelvic diseases, malignant ulcers, homeostasis, analgesic, soft tissue inflammation and other ailments.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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