Sterilization Systems and Equipment: A Global Strategic Business Report
San Jose, CA (Vocus) October 21, 2010
The healthcare industry although resilient is not immune to changes in the macro-economic environment. The length and depth of the current recession has been significant and the contraction in business activity widespread across diverse industries including the healthcare industry. Even the traditionally perceived as resilient sterilization equipment market weakened under the pressure of financial constraints. Sterilization devices represents one of the most critical equipment in a medical facility, given that effectiveness, efficacy and success of patient outcomes of operations/surgeries, medical examinations and research and experiments depend on the ability to prevent cross-infections.
Notwithstanding this fact, tight budgets, and increased difficulty in securing finances necessary for capital purchases, have pushed hospitals into postponing plans for system replacements and new equipment purchases. This reduction in budget financing of medical institutions for purchasing sterilization equipment has been largely responsible for the slide in sales growth. The economic downturn has also lengthened the product replacement cycle, and has slowdown the adoption of new technologies. For instance, hospitals currently seek cheaper ways to extend the operating life of equipment through rebuilding and refurbishments. Therefore, demand for servicing, maintenance and rebuilding services have held up relatively better in comparison to new equipment sales. Recession induced end-user price sensitivity has hit OEMs the hardest as they traditionally represent the most expensive option for both maintenance and new equipments. With the industry in the “valley”, the ability to offer the lowest service rates spells success, and smaller players, and independent service organizations stand to gain in comparison with their larger OEM counterparts. Amid the cooling economy, the soft business climate, which took shape through the years 2008 and 2009, is expected to continue into the year 2010.
However, prolonged cutbacks are seen as unlikely since the downtime associated with equipment breakdowns results in hospitals bleeding cash as a result of disruptions and delays in operation schedules and other tasks. As the world economy recovers and financial pressures ease, upgradations and replacements is expected to come back into the fore, as hospitals begin responding to the need for maintaining sophisticated systems and equipment for disinfection. Rise in surgical procedures will additionally throw the spotlight on sterilization equipment, given the fact that patient health and treatment outcomes depends on the level of disinfection standards maintained by hospitals including sterilization of instruments, objects, and devices used during patient care. Rise in surgical volumes, however, is closely tied to future changes in healthcare reforms. For instance a larger base of insured patients will translate into higher surgical procedures and since demand for sterilization equipment is procedure-driven, volume gains in patient throughput will aid in magnifying the business case for these devices.
As stated by the new market research report, Europe and United States collectively account for a lion’s share of the global sterilization systems and equipment market. Growth in the immediate future is expected to be driven by increased reprocessing of medical devices as a critical cost-saving measure in the currently weak economic climate. Reprocessing is rapidly emerging into an important survival strategy for cash strapped hospitals in the developed countries, as they seek newer ways and means to stem the deterioration in bottom lines. The ensuing rise of the third-party reprocessing industry will help rake in additional market opportunities for sterilization equipment.
Key players in the market place include 3M Company, Advanced Sterilization Products, Aesculap Inc, BeamOne LLC, Cantel Medical Corp, Minntech Corporation, Cardinal Health Inc, Getinge AB, L3 Pulse Sciences (RF Accelerator Applications division), Medin Corporation, Propper Manufacturing Company, SciCan Inc, SteriGenics International Inc, STERIS Corporation, Symmetry Medical Inc, TSO3, and Tuttnauer Company, among others.
The research report titled "Sterilization Systems and Equipment: A Global Strategic Business Report" released by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, challenges, player profiles, competition, technological developments, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in (US$) for geographic markets such as United States, Canada, Japan, France, Germany, the UK, Italy, Spain, Russia, Asia-Pacific, Latin America and the Middle East/Africa. Product/process markets analyzed include Steam/Autoclave, Ethylene Oxide Sterilization, Gas Plasma Sterilization, Gamma Radiation Sterilization and E-Beam Radiation.
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