Frost: Lower Acuity Segment Ensures Growth in N. American Multiparameter Monitoring Equipment Markets
March 11, 2008 // Published as a news service by IHS
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Low-acuity settings remain at a peak position of the North American multiparameter monitoring equipment market, according to Frost & Sullivan, spurring unit growth by adding new monitors to this highly replacement-driven market.
Long-standing market trends will likely restrict overall growth, however, keeping rates from reaching a double-digit figure.
Recent analysis from Frost & Sullivan of the North American multiparameter monitoring equipment markets found earned revenues of $0.97 billion in 2007, with estimates to reach $1.16 billion in 2014.
"The multiparameter monitoring market is a very mature space suffering from intense market competition and general price erosion," said Frost & Sullivan research analyst Zachary Bujnoch. "Nevertheless, several key growth trends continue to counteract these long-term negative factors, leading to definitive positive growth."
Among them, the growing focus on improving patient safety in general wards and other low-acuity settings, such as step-down wards, has led to a considerable increase in the use of advanced patient monitoring in low-acuity settings.
Recognizing this, analysts said manufacturers have shifted their focus on this market, even to the extent of developing a product exclusively for this setting.
On the other hand, analysts said higher acuity monitoring areas will bounce back after a couple of years, as advances in software and IT integration give hospitals good reasons to upgrade or replace their aging monitors.
Analysts said since the number of hospital beds decreased in the U.S., organic growth greatly restricts this market. With this having such an intense effect on the monitoring space, places for traditional bedside monitors continue to decline.
"As hospital beds continue to decline, the monitors those beds would have housed are on the decline as well," said Bujnoch. "Unit replacement will be affected as a result, forcing manufacturers to find new ways to sublimate or replace established revenue streams."
Despite the decline in the number of beds, monitoring needs remain as intense as ever. Analysts said non-traditional monitoring areas (such as transport monitoring) and low-acuity environments (such as step-down wards) have experienced large growth, giving companies ample opportunities to make up lost ground from declining hospital beds.
Source: Frost & Sullivan.