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The endoscopes market, although young, has reached maturity in a short timespan. The key challenges include facility and surgeon consolidation and price erosion.
According to Frost & Sullivan, companies need to establish long-term relationships with end-users and create a brand image in order to ensure continued growth and support.
New analysis from Frost & Sullivan of the U.S. endoscopes market found revenues in this industry totaled $449.96M in 2005, with estimates to reach $513.46M in 2012.
"Endoscopic diagnostic and surgical procedures have seen a prominent boost since 2002 due to reimbursement for office-based procedures. Most diagnostic procedures can be efficiently performed in the physician office, thus reducing the load on hospitals and offering a more convenient and less-expensive option to patients," said Frost & Sullivan health care industry manager Vaishnavi Ananthanarayanan.
In the past, ear, nose and throat (ENT) procedures were performed in hospitals, but since they were minor procedures it was a waste of resources and space. Patients also found it cumbersome to go through all the other formalities in a hospital for minor ENT procedures.
Additionally, although most ENT procedures were being performed in-office in recent years, they lacked sufficient reimbursement. With a current procedural terminology (CPT) code being assigned in 2003, the restraint due to reimbursement in the office setting has been eliminated, thus resulting in an increased flow of in-office ENT endoscopy procedures.
In recent years, the arthroscopy industry has seen a positive move toward performing small joint arthroscopy, as well as certain cases of knee, shoulder and elbow arthroscopy in ambulatory surgical centers and physician offices. With heightened focus on office-based procedures for cystoscopy, analysts said patients and medical practitioners have accepted office-based urology procedures as a convenient and less-expensive means of treatment.
Analysts said consolidation of facilities and specialists puts increased pressure on companies to hold on to their market share. Several facilities have either closed down or tied-up with others to perform certain specialty cases and procedures.
"This consolidation is not only an effort to reduce costs, but to bring together a pool of expertise and equipment. Thus, manufacturers are constantly competing to cater to a shrinking pool of end-users," said Vaishnavi. "Ambulatory surgery centers (ASCs) further help in reducing costs for end-users as equipment is often used on a shared basis or refurbished equipment is used."
Another shift has been specialists, such as ENT and pulmonary endoscopists, working together as many of the procedures are interlinked and require dual expertise and common or similar equipment. All these consolidations prove to be an impending challenge for companies to pitch their product and hold on to existing market share.
Establishing long-term contracts with facilities for new purchase and service is the key to overcome the challenge of facility and surgeon consolidation. In a brand-conscious market, analysts said strong customer service and relationship would help leverage company market share, in spite of transitions and mergers.
Source: Frost & Sullivan.