CareFusion, Baxter and Hospira Lead the Infusion Therapy Market as Hospitalization in the U.S. Climbs Reports iData Research

IV prices drop for hospitals as demographics change, causing increased demand for infusion therapy devices.

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More hospital visits translates to an increased need for all types of intravenous (IV) sets. In 2012, there were over 37 million general hospital admissions and over 16 million emergency room hospital admissions.

(PRWEB) January 21, 2013

U.S. Hospitals are seeing less births and an increased number of elderly and obese patients being admitted. This trend will cause a rise in demand for infusion therapy devices because this market’s growth is proportional to the number of people that require medical care each year. Infusion therapy is used when oral therapy is not a viable option due to the danger that medications might be ineffective when passing through the digestive tract, or when patients have disorders which make swallowing difficult.

Last year, the estimated U.S. population was almost 314 million and is growing at approximately 0.8% per year; its distribution shifting toward an older population due to people living longer and the reduced fertility rates in younger age groups. Moreover, the prevalence of obesity is approximately 26% and steadily increasing. As the population ages and obesity prevalence rises, the number of individuals requiring medical care will also increase. The hospitalization rate in the U.S. is expected to increase steadily over the next 10 years.

Increased Use of IV Sets

More hospital visits translates to an increased need for all types of intravenous (IV) sets. In 2012, there were over 37 million general hospital admissions and over 16 million emergency room hospital admissions. In previous years, uncertainty in the market caused a decrease in the number of hospital admissions as doctors and patients decided to postpone elective and non-emergency procedures.

Increases in the size and value of the intravenous (IV) set market are driven primarily by increases in the size and age of the overall patient population. This counteracts economic uncertainty as a potential market limiter and has caused the market to return to growth rates seen prior to 2009. In addition, “more patients are being treated with multiple medications that cannot be mixed together which is increasing the use of secondary IV sets and causing an overall increase in the market value” explains Dr. Kamran Zamanian, the CEO of iData Research. “Our research indicates that over three quarters of all the primary sets used will require at least one secondary IV set and that this trend is expected to increase to nearly 85%” says Dr. Zamanian.

Market Value Trends

The intravenous (IV) set market is the only market segment that is expected to decrease in market value due to rapid decreases in the average selling price for primary IV sets.

A large portion of the devices in the U.S. infusion therapy device market in 2012 were purchased through group purchasing organizations (GPOs). These organizations increase hospital bargaining power, reducing the price hospitals pay for medical products. This factor can create difficulties for small manufacturing companies looking to enter the market due to the high volume requirements and price discounts demanded by GPOs. In many cases, smaller companies are unable to bid on a contract, which seriously limits their ability to penetrate the market. While GPOs save hospitals money, they can discourage innovation and decrease market value.

Since 2010, there has been a substantial decrease in the price of most IV sets, with a double-digit price decrease in the last two years. ASP is expected to reflect the value set by GPOs as they continue to comprise a larger portion of the market. Overall, average selling prices for secondary and IV extension sets are increasing because of new devices that are sold at a premium when compared to conventional devices.

Industry Players: CareFusion, Baxter International, Hospira

CareFusion is a strong competitor in the U.S. IV set market. They have succeeded with large volume infusion pumps and in 2012, they controlled nearly half of that market.

Benefiting from their historically strong foothold in the market, Baxter tends to bundle their IV tube sets with their infusion pumps and offer proprietary sets that are only compatible with Baxter pumps. This exclusivity tends to ensure that customers purchase replacements for their complementary products after purchasing the pump.

Hospira’s extensive portfolio offers products that protect patients and medical professionals from the risks of infusion therapy. Unlike some other competitors, Hospira’s IV sets are designed to be used with a broad range of other IV products. Through a partnership with ICU Medical, Hospira also sell custom IV sets.

iData’s report on The U.S. Market for Infusion Therapy Devices 2013 includes the latest data, market-analyses and competitor profiles for over 17 segments. This report series also includes Asia Pacific (Japan, Australia and South Korea) as well as fifteen European countries.

About iData Research

iData Research is an international market research and consulting group focused on providing market intelligence for medical device and pharmaceutical companies. iData covers research in: vascular access, interventional cardiology, peripheral vascular, cardiac surgery and more. For the most current press releases and articles, follow iData on LinkedIn.


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