Frost: Infection Prevention Measures Will Drive Euro Thermometer Sales
May 23, 2006
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Non-contact thermometers are finding increasing uptake in the European market, largely due to growing public awareness about the need for enhanced infection control. According to Frost & Sullivan, the European temperature monitoring devices market generated revenues of $150.0M in 2005, with estimates to reach $240.0M by 2012.
"The market has reached a phase of saturation, with limited technological progress," said Frost & Sullivan senior research analyst Aarati Ajay. "However, mounting concerns about patient safety and infection control, particularly in the aftermath of virulent strains of SARS (severe acute respiratory syndrome) and the avian flu, is spurring demand for non-contact thermometers."
Analysts said countries such as the U.K. and France are likely to take the lead in adopting thermometers that enable minimal body contact. The course of market growth will thereby shift from more traditional temperature devices to those based on newer technologies. Targeting niche applications will also help reduce the effects of price competition, while sustaining revenue generation.
Certain types of thermometers, including phase change disposable, temporal artery and infrared ear and tympanic are likely to experience a surge in demand. These thermometers not only provide more accurate readings than their traditional counterparts, but also obviate issues of infection transmission that beset conventional body-contact thermometers.
Today's market is defined by intensifying competition. In addition to increasing rivalry between regional companies, typically low entry barriers have resulted in a flood of competitors from Taiwan, Indonesia, South Korea, China and other Asian countries, resulting in a deluge of low-cost products.
Escalating competition has triggered rampant price-cutting, with local manufacturers facing dwindling profit margins. Price erosion has emerged as a critical challenge, with prices forecast to reduce at the rate of 20% over the next four to five years. Analysts said volume sales are not expected to rise enough to offset the projected price attrition.
"Catering to niche markets by developing product features suited to particular applications could be a way for vendors to sustain market growth," said Ajay. "With the market currently characterized by low product differentiation, companies could strategically reposition their offerings in niche application segments through product changes and improvements."
Source: Frost & Sullivan.