Rising waste generation and greater healthcare regulation will drive industry demand
New York, NY (PRWEB) September 18, 2014
US medical facilities are expected to generate more than 5.9 million tons of medical waste in 2014. Due to public safety concerns, such waste cannot be directly disposed of in landfills along with municipal solid waste. An increasing number of laws and regulations governs the disposal of regulated medical waste (RMW). This includes disposable items that may be contaminated by blood, body fluids or other potentially infectious materials. As a result of increased regulation, most small quantity RMW-generating facilities outsource disposal activities to comply. While some large quantity generators (e.g. hospitals) dispose of waste at in-house incinerators, outsourced services represent a large market for the Medical Waste Disposal Services industry. With increased regulation and rising RMW generation, revenue is anticipated to increase at an annualized rate of 4.7% over the five years to 2014, including growth of 3.3% in 2014 to total $4.8 billion.
In the five years to 2014, the number of patient visits in the healthcare sector has risen and this trend has pressed healthcare providers to outsource disposal services to reduce costs, driving industry demand. According to IBISWorld Industry Omar Khedr, “The aging US population has also created robust demand for hospitals and medical centers.” As patient visits have risen, the additional medical waste has forced hospitals to increasingly outsource waste disposal activities. Furthermore, because of strong downstream demand, the industry remained relatively unscathed during the economic downturn.
“The Medical Waste Disposal Services industry is highly competitive, geographically fragmented and characterized by consolidation,” says Khedr. Over the five years to 2014, the number of companies is projected to increase at an average annual rate of 0.2% to 415. The largest industry player, Stericycle, currently holds a 36.0% market share as it has aggressively acquired small operators to expand its reach among the growing small quantity generator market (e.g. outpatient clinics and dental offices). For instance, in 2011, the company completed its $245.0-million acquisition of Healthcare Waste Solutions, increasing Stericycle's capabilities and market share further. Rising waste generation and healthcare regulation is anticipated to create opportunities for new entrants over the next five years, driving demand growth.
For more information, visit IBISWorld’s Medical Waste Disposal Services in the US industry report page.
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IBISWorld industry Report Key Topics
The Medical Waste Disposal Services industry collects, treats and disposes medical waste according to local, state and federal guidelines. Medical waste is generated from healthcare facilities, including hospitals, clinics, veterinary clinics, dentist offices, research labs and private practices. The industry is highly regulated.
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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