A fast-growing elderly population will contribute to higher demand for blood and organs.
New York, NY (PRWEB) May 18, 2014
Every year, the United States experiences a shortage of blood and organs, both of which are in constant demand. According to the US Department of Health and Human Services, a large amount of individuals are added to a national waiting list for transplants each month. Since the development of immunosuppressive drugs in the 1970s, which prevent patients from rejecting transplanted organs, the number of people that have demanded organ transplants has exceeded the number of organ transplants performed. During the past five years, incidents of chronic kidney disease have increased, and about two-thirds of cases are attributable to diabetes and high blood pressure. From 2000 to 2008 (latest available data), demand for kidney transplants from the burgeoning elderly population has more than doubled, according to the National Kidney and Urologic Diseases Information Clearinghouse, with this trend expected to continue during the five years to 2014.
Nevertheless, the industry has contended with challenges during the past five years. For example, according to IBISWorld Industry Analyst Sarah Turk, “matching a patient with a donated kidney requires organ banks to examine blood and tissue types, which is a time-consuming task.” Moreover, in 2011 and 2012, “low business sentiment caused many businesses to slash their donations, hampering industry revenue,” says Turk. On the other hand, many businesses became involved with disaster relief services during the past five years, for example, by providing blood for victims of the Boston Marathon bombing.
During the five years to 2014, revenue is expected to grow at an annualized rate, including growth in 2014, due to healthcare reform enabling more individuals to afford organ transplants, thereby stimulating demand for industry services. However, profit is expected to decline, as for-profit blood and organ banks continue to suffer due to hospital consolidation, which has strengthened hospitals' ability to negotiate low-cost contracts for blood and organs.
The Blood and Organ Banks industry has a low, albeit increasing, level of market share concentration. During the five years to 2019, industry revenue is forecast to grow at an annualized rate. As the prevalence of diabetes increases, more individuals will likely require kidney transplants, thus stimulating demand for industry services. Additionally, as disasters may continue to occur, many companies will expand their fundraising efforts and benefit from more individuals and businesses donating blood, tissue or organs.
For more information, visit IBISWorld’s Blood & Organ Banks in the US industry report page.
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IBISWorld industry Report Key Topics
The Blood & Organ Banks industry includes companies that primarily collect, store and distribute blood, blood products and body organs.
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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