Downstream demand from hospitals and other medical service providers has grown at a stable level.
Melbourne, Australia (PRWEB) October 17, 2013
Medical waste service providers collect, treat and dispose of a wide range of medical waste produced by medical service organisations. Demand for the Medical Waste Services industry in Australia has grown at a steady rate in the past five years, as downstream demand from hospitals and other medical service providers increased at a stable level. According to IBISWorld industry analyst Alen Allday, “this has been due to general population growth, continued demand for medical services, and increased hospital and medical funding from governments”.
As a result of continued growth in the medical sector, more firms have entered the industry to provide medical waste services to hospitals and other medical waste producers. This increased industry competition has reduced profit margins in the past five years through 2013-14 due to downward pressure on pricing. “Further, SteriHealth Ltd, the largest operator in the industry, has increased its market share across the industry in the past five years through organic growth and acquisitions, which has placed further pressures on industry pricing,” says Allday. The industry has an overall low level of ownership concentration. SteriHealth Limited, Transpacific Industries Group Ltd and SembSITA Australia Pty Limited are the major players in the industry.
The Medical Waste Services industry has expanded at a steady rate in the past five years due to steady revenue growth, more new firms entering the industry, and employment and wages growth. IBISWorld estimates that industry revenue will increase at an annualised 2.7% in the five years through 2013-14 to $390.2 million. This includes estimated growth of 2.7% in 2013-14 as steady growth continues across the industry for the year. However, profit margins fell significantly over the past five years. This fall has been due to pricing pressures and higher industry costs. Industry growth is forecast to continue in the next five years. However, lower margins are expected to continue as pricing competition puts downward pressure on pricing.
For more information, visit IBISWorld’s Medical Waste Services in Australia industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry collect, treat and dispose of medical waste. Medical waste is generated from healthcare facilities, including hospitals, clinics, veterinary clinics, dentist offices, research labs and private practices.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
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