Medical Gases and Equipment Market to Reach US$9 bn by 2018 due to Expansion of Home Healthcare Market
January 3, 2017 in Health
The global medical gases and equipment market is consolidated and the top six players accounted for nearly 78% of the overall market shares in 2011, reports Transparency Market Research (TMR) in a new study. The top six players are Linde Gas, Air Liquide, Air Products and Chemicals Inc., Praxair Inc., Air Gas Inc., and Matheson Tri-Gas Inc. “The key companies are entering into mergers and acquisitions to improve their distribution channels and expand their consumer base,” says the author of the report. The market is characterized by high competitive rivalry due to wide presence of local manufacturers who market their products on the basis of price.
The valuation of global medical gases and equipment market was US$7.19 bn in 2015is estimated to reach US$9.03 bn by 2018, expanding at a CAGR of 8% from 2012 to 2018. Geographically, North America was the leading segment in 2015 and is expected to reach US$3.81 bn in 2018. However, Asia Pacific will exhibit at a CAGR higher than other segments, between 2012 and 2018. The rapid growth in this region can be attributed to improving economic conditions in countries such as India and China and rising geriatric population in Japan. Based on product type, the medical equipment products was the leading segment in 2015 and is anticipated to retain leadership until 2018. However, medical gases product will show a faster CAGR of 8.6% from 2012 to 2018.
Request a PDF Brochure with Report Analysis:
Growth in Home Healthcare to Increase Demand for Medical Gases and Equipment
In July 2012, the U.S. Congress had implemented the Food and Drug Safety and Innovation Act, which established a certification process for medical gas production and ensured protection for new products by providing medical gases and equipment manufacturers with intellectual property rights. In addition, it granted drug fees waiver and approved drug status to medical gases. Such implementations will help manufacturers to boost their sales, consequently increasing the valuation of the global medical gases and equipment market.
The growth in the home healthcare market is positively influencing the growth of the global medical gases and equipment market. The growth has resulted in increasing the sales of medical gases and equipment such as packaged oxygen, thereby acting as a driver. Other factors bolstering the growth of the global medical gases and equipment market are the rising medical gas safety-related awareness, increasing global geriatric population, and the establishment of industry-friendly associations such as the Gases and Welding Distributors Association (GAWDA) and Compressed Gas Association (CGA).
Helium Crisis to Pose Threat to Global Medical Gases and Equipment Market
The global medical gases and equipment market is challenged by a gap in the supply of helium. Helium gas is used as an MRI coolant and in the field of cryogenics and a shortage of this gas will act as a restraint for the global medical gases and equipment market. Also, it is estimated that the impact will elevate in the forthcoming years with the constant depletion of helium reserves. Another factor impeding the growth of the global medical gases and equipment market is the rising number of cases of medical gas and cylinder thefts. These thefts cause unnecessary expenses for healthcare organizations. However, manufacturers have started taking help from consulting firms that provide security solutions, thus curtailing the impact of the restraint.
The information presented in this review is based on a Transparency Market Research report, titled, “Medical Gases and Equipment Market – Global Industry Analysis, Size, Share, Growth and Forecast, 2012 – 2018.”
Browse Full Research Report on Medical Gases and Equipment Market: