Terminal Sterilization Services Market Size, Share & Trends Analysis Report By Product (Ethylene Oxide, Irradiation, Others), By End-use (Hospital & Clinics, Pharma & Nutraceuticals), By Region, And Segment Forecasts, 2023 - 2030

Terminal Sterilization Services Market Trends

The global terminal sterilization services market size was valued at USD 10.87 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 10.8% from 2023 to 2030. The rising number of surgical procedures, growing incidences of hospital-acquired infections, rise in prevalence of chronic diseases, and rapid technological advancements are the major factors anticipated to drive market growth globally.

There has been an increase in the number of surgical procedures performed globally. For instance, according to a research article published in NCBI in 2020, around 310 million surgeries are performed annually worldwide. Similarly, according to the American Society of Plastic Surgeons (ASPS), in 2018, over 17.7 million surgeries and minimally invasive cosmetic procedures took place in the U.S.

Moreover, as per Mölnlycke  Health Care AB, around 70 million surgical procedures are performed in Europe, growing by 3-4% annually. Most of the surgeries involve at least one device that has been sterilized by using EtO. For instance, surgical kits, gowns, heart valves, pacemakers, drapes, syringes, catheters, and ventilators are among the medical devices that require EtO sterilization. Thus, the rising number of surgeries is expected to boost the market growth.

The increasing incidence of HAIs is expected to impact the market during the forecast period positively. For instance, according to The National Institute for Health and Care Excellence (NICE), around 300,000 patients in England suffer from HAIs every year. Similarly, as per the CDC, in American hospitals, an estimated population of 1.7 million people is infected with HAIs, which accounts for the approximately 99,000 associated deaths annually. Thus, with an increase in HAIs, the demand for terminal sterilization is poised to grow, thereby propelling the market during the forecast period.

Moreover, the prevalence of chronic diseases is expected to increase the demand for terminal sterilization. For instance, as per the WHO, more than 40% of people aged 65 and above in the UK have reported at least one chronic disease, whereas 15% of people have at least two chronic diseases. Similarly, according to the European Commission, cardiovascular disease is the biggest cause of death in the UK.

Furthermore, the rate of stroke cases in the UK is increasing. For instance, as per Stroke Association, a stroke strikes every 5 minutes in the UK, whereas there are 1.3 million stroke survivors in the UK. Thus, many people are opting for invasive surgeries, which is indirectly contributing to the growth of the terminal sterilization service market. Additionally, rapid technological advancements have led to the launch of various innovative products, which are expected to propel market growth.

Low-temperature hydrogen peroxide sterilization has emerged as one of the promising sterilization techniques. This technique does not comprise any highly hazardous chemicals and has a shorter cycle time. The plasma sterilization technique is expected to expand steadily in terms of demand during the forecast period.

In April 2020, the Steris V-PRO 1 Plus, maX, and maX 2 low-temperature sterilization systems were granted approval by the U.S. FDA for the daily decontamination of N95 respirators and masks used in hospitals to treat COVID-19 patients. Apart from H2O2 sterilization, pulsed light sterilization has gained significant popularity in the market in recent years as this process is also chemical-free and involves the use of high-intensity pulsed light for short durations, making it safe for the disinfection of foods. Thus, the mentioned factors are expected to boost market growth during the forecast period.

In addition, a surge in the geriatric population may increase the demand for terminal sterilization services. For instance, as per the Administration for Community Living, 16% of the total U.S. population, i.e., about 54.1 million people in 2019 were aged 65 and above. Similarly, according to Ageing Asia, as of 2020, 139 million people in India were aged above 60 years, contributing to 10% of the country’s population. Geriatric people are more susceptible to acquiring HAIs; thus, to restrict their spread in the geriatric population, the use of terminal sterilization services has increased, further propelling market growth.

The COVID-19 pandemic has significantly increased global demand for advanced healthcare facilities and services to treat the infected population. As one of the crucial parts of healthcare, terminal sterilization services & related products are experiencing high global demand, as they can help control the transmission of COVID-19. Moreover, with the development of vaccines, countries around the globe have opened their international borders. As a result, the supply chain is expected to normalize during the post-pandemic period.

Additionally, as a result of COVID-19, many companies were involved in strategies such as mergers, acquisitions, and product launches so as to fulfill the demand. For instance, in January 2021, Steris signed an agreement to acquire Cantel Medical for USD 4.6 billion and acquired it in June 2021. The acquisition was done to diversify the infection prevention segment of the company. Thus, due to the above-mentioned factors, the terminal sterilization services market is predicted to expand during the forecast period.

End-use Insights

Based on end-use, the market is divided into hospitals & clinics, pharma & nutraceuticals, medical device manufacturing/packaging, other manufacturing sectors, academic research institutes, and others. The hospitals & clinics segment held the largest market share of 27.0% in 2022 and is expected to witness the fastest CAGR of 11.5% during the forecast period. The increasing burden of HAIs is primarily boosting the demand for sterilization in hospitals and other healthcare settings.

In addition, the growing number of surgical procedures and stringent safety guidelines for staff & patients in terms of medical waste disposal are likely to drive the adoption of terminal sterilization services in hospitals. For instance, according to the WHO, at any time, the prevalence of HAIs falls between 3.5% and 12% in developed countries. At the same time, every 10th person out of 100 in a hospital suffers from HAI. Usage of suitable disinfectants and sterilization methods is essential, as they can help prevent the transmission of infections.

Therefore, with the increasing number of HAIs, the use of terminal sterilization is expected to increase, thus propelling the market during the forecast period. Furthermore, the increasing number of surgical procedures in clinics is a major factor contributing to segment growth. Maintaining proper hygiene and sanitation is necessary to maintain a healthy environment in the clinic. The spread of COVID-19 requires the adoption of preventive measures to contain its spread. These factors are expected to drive the adoption of terminal sterilization services in clinics, thus boosting segment growth during the forecast period.

Product Insights

In terms of product, the market is divided into irradiation, ethylene oxide, moist heat terminal sterilization, and others. The ethylene oxide segment held the largest market share of over 40% in 2022; however, the demand for irradiation is expected to grow at a faster rate in the coming years. The irradiation sterilization service market is rapidly growing, providing various sterilization services using irradiation technology. Irradiation has been further segmented into X-rays, e-beam, gamma (Co 60), and others, and is estimated to witness the fastest CAGR of 11.2% during the forecast period.

The high penetrating capability of gamma irradiation, which enables delivery of the intended radiation dose to denser product parts, is an essential characteristic. In addition, when treating a wide range of products with different densities, gamma irradiation is secure, reliable, and extremely effective. This can be attributed to the extensive polymer compatibility of gamma rays, electron beams, and X-rays. Sterilization with radiation inactivates & destroys microorganisms effectively and ensures that healthcare products are safe & reliable. It is cost-effective and safe for sterilizing disposable medical products, such as surgical gloves, sutures, gowns, face masks, and syringes.

One of its key benefits is that it allows sterilization of already-packaged products. These rays produce high penetrating electromagnetic radiations and kill contaminating microbes. The irradiation technique offers several benefits such as better penetration and high sterility, which is equally effective irrespective of pressure & temperature. Thus, due to the above-mentioned factors, the demand for irradiation is expected to grow at a rapid rate, thereby propelling segment growth over the forecast period.

Regional Insights

North America dominated the market with a share of around 35% in 2022 and is anticipated to witness a significant growth during the forecast period. This is expected to be aided by the advanced healthcare infrastructures and favorable reimbursement policies. Moreover, the high prevalence of hospital-acquired infections is further contributing to regional market growth. For instance, as per the Healthcare Information and Management Systems Society, each day, one out of 25 patients in the U.S. are affected with HAI.

Moreover, strict regulatory policies to deliver safe and quality healthcare services are anticipated to fuel market growth during the forecast period. For instance, the Patient Protection and Affordable Care Act mandates the usage of terminal sterilization processes in healthcare facilities in this region. In addition, the rising number of surgeries and expanding worker base in the healthcare sector may boost the demand for such services. Hence, these factors are expected to propel the growth of the market for terminal sterilization services over the forecast period.

Asia Pacific is anticipated to witness the fastest CAGR of 11.1% during the forecast period, owing to the presence of a large population base and growing medical tourism from several emerging economies. In addition, the growing demand for reusable medical devices is also anticipated to propel the growth of the market for terminal sterilization services. Major market players are also making efforts to enter untapped markets such as India, China, and Korea, thereby expanding the market scope.

Furthermore, the increasing number of surgeries and the growing prevalence of chronic diseases are among the factors boosting the number of hospital admissions, leading to increased demand for terminal sterilization of medical devices, equipment, and other products.

For instance, as per the Australian Medical Association report in 2019, in 2017 - 2018, there were around 8,017,492 people admitted to public hospital emergency departments in Australia. As per the same source, the number of emergency admissions increased by 2.7% per year on average over 4 years from 2013 - 2014 to 2017 - 2018. Thus, due to an increase in the number of hospitalizations, the incidence rate of HAIs may increase, which is expected to drive market growth during the forecast period.

Key Companies & Market Share Insights

The global market is fragmented in nature, with the presence of large and small manufacturers. Competitive rivalry in this market is expected to increase during the forecast period due to many local and key players. In addition, leading players are involved in collaborations, product launches, and mergers & acquisitions to strengthen their product portfolios.

For instance, in January 2021, STERIS plc signed an agreement to acquire Cantel Medical, a provider of infection prevention services & products, through its U.S. subsidiary, in a transaction valued at approximately USD 4.6 billion in cash. Through this acquisition, the company aimed to offer a diversified range of infection prevention and procedural products & services. Such strategies help firms in strengthening their global presence.

Terminal Sterilization Services Market Report Scope

Global Terminal Sterilization Services Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global terminal sterilization services market report on the basis of product, end-use, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Ethylene Oxide

  • Irradiation

    • X-ray

    • Gamma (Co-60)

    • E-beam

    • Others

  • Moist Heat Terminal Sterilization

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospital & Clinics

  • Pharma & Nutraceuticals

  • Medical Device Manufacturing/Packaging

  • Other Manufacturing Sectors (Semiconductor, Food/confectionaries, Chemical/Materials)

  • Academic Research Institutes

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait