Global medical gases and equipment market size was estimated at USD 5.90 billion in 2013. Increasing base of geriatric population resulting in a decrease in immunity levels and increased susceptibility towards respiratory diseases are some key growth factors. The global medical gases industry is expected to witness rapid growth owing to, the rising demand for pure gases and mixtures from healthcare institutions and clinics. Increasing demand for packaged grade products such as oxygen for home healthcare and point-of-care devices is likely to serve as derived drivers over the forecast period.
Rising number of industry-friendly organizations such as GAWDA and CGA are helping manufacturers to establish strategies that would help this industry thrive and flourish. Organizations such as AsteRisk LLC provide training and safety solutions to gas equipment manufacturers and users.
The implementation of the Food and Drug Safety and Innovation Act passed by the U.S. Congress in 2012 is expected to fuel medical gases market growth. The act includes elimination of drug user fees for manufacturers, use of designated gases as approved drugs for clinical use, and providing manufacturers with intellectual right protection for new products.
North America medical pure gas market revenue by product, 2012-2020, (USD Million)
Medical pure gases were the largest product segment valued at over USD 1.7 billion in 2013. Large share of the segment is attributed to global increase in geriatric population and rising prevalence of respiratory disorders such as chronic obstructive pulmonary disorder requiring regular administration of oxygen
Mixtures are expected to grow at a CAGR of 11.1% from 2014 to 2020. Increasing demand for these mixtures during special conditions such as renal dialysis, cardio pulmonary bypass surgery, pain management, and sterilization are factors owing to growth of medical gas mixture industry.
Presence of large patient base undergoing emergency medical care and suffering from respiratory disorders is expected to boost growth of this industry over the forecast period. Alternative and extensive use of pure and medical mixture by healthcare institutes and clinical practitioners during various treatments and surgical procedures is expected to witness high demand for these products.
Vacuum systems dominated the overall segment accounting for over 30.0% of the revenue in 2013. Higher prices associated with these products coupled with high penetration rates are factors resulting in largest share of this segment. Extensive R&D and new products in pipeline are expected to improve usage rates.
Masks were the fastest growing product and are likely to register a cumulative growth of over 9.0% from 2014 to 2020. Growth of this segment is attributed to low manufacturing costs associated with it with very high usage rates. Other segments such as manifolds and regulators outlets are also expected to grow at lucrative rates.
North America medical gases and equipment market was the largest accounting for over 40.0% of the total revenue in 2013. Presence of sophisticated healthcare infrastructure, high volume of minimally invasive medical procedures, and the industry-friendly initiatives such as the implementation of the U.S. Food and Drug Administration Safety and Innovation Act are some of the factors attributing to its large share.
Europe medical gases and equipment industry is the second largest revenue generating region owing to, presence of lucrative growth opportunities in Eastern European markets such as Russia and Poland. European associations are actively involved in providing help to local manufacturers regarding regulations for production and distribution of these products.
Europe was followed by Asia Pacific, which accounted for over 19.0% revenue in 2013. Rapidly improving healthcare infrastructure, patient awareness levels, and unmet clinical needs in developing countries such as India and China are expected to attract more manufacturers to fulfill untapped opportunities in these regions.
Increasing awareness regarding chronic and respiratory diseases and rise in disposable income have led to adoption of better use, which is expected to play a major role in driving the demand over the next six years.
The medical gases and equipment market share was dominated by Air Liquide in 2013. Linde Gas followed Air Liquide with a share of around 18%. Wide distribution network coupled with wide range of products are factors owing to second position of this company.
Growing amount of collaborations such as mergers and acquisitions, license agreements, and new product developments are business strategies used by companies to establish ancillary and target untapped market with high penetration rate.
Extensive R&D practices undertaken by companies for development of efficient and novel products are expected to help growth of this industry. For instance, in May 2014, Medical Gas Solution has launched the Medi-1st and Medi Quick kits to its product range. Increasing R&D investments by key players for upgrading the available product line is a growing trend in this market.