IV equipment market grows, despite changes
Techno-efficient’ products may set pace
Despite the drive to reduce costs and improve technology, the U.S. IV equipment and supplies market has grown in importance in the past several years. According to U.S. IV Therapy Device Markets, a research report compiled by the market research firm Frost & Sullivan in Mountain View, CA, the growth has hinged in large part on the aging of the U.S. population and the growth of drugs identified as intravenously administrable.
While some segments of the market will suffer due to managed care, others are likely to thrive. Areas most likely to enjoy revenue growth are those that will address the current demands to reduce costs and introduce "techno-efficient" products, according to the report.
For example, the implantable infusion pump market has enormous growth potential. In 1994, revenues for implantable pumps were $51.8 million, a 12% growth rate. Also likely to enjoy future success are diabetes insulin infusion pumps. The newest and smallest segment of the IV equipment and supplies industry, the report notes that this market segment is currently in its infancy stage.
While cost reductions and additional technology present barriers, home infusion and alternate-site health care presents the best opportunity for growth. More companies are moving into this area as additional critical therapies, such as chemotherapy, can now be delivered outside the hospital.
Experts expect managed care will accelerate the home health industry’s rush to telemedicine, which will substantially reduce nurse travel time and increase efficiency.
However, with the current cost-cutting trends and advent of Group Purchasing Organizations, it is likely large companies will dominate the market. Three factors play a key role in determining the success or failure of companies in the current environment of managed care, consolidation, and cost containment:
1. the breadth of a company’s presence in this and affiliated markets;
2. marketing and distribution strength;
3. the ability to develop innovative technology that reduces overall costs.
[Editor’s note: For more information on Frost & Sullivan’s research reports, call (415) 961-9000.]
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