According to market research firm GlobalData, the worldwide market for disposable hospital supplies was valued at $9.1 billion in 2010 and is expected to grow at a compound annual growth rate (CAGR) of 6 percent to reach $14.1 billion by 2017.
A key driver is the number of surgeries being performed. The demand for disposable hospital supplies also is expected to increase due Medicare and Medicaid’s non-payment policy for hospital-acquired infections. This has increased the emphasis on the use of disposables to prevent infection and reduce error rates, according to the report’s authors. The growth in the number of ambulatory surgical centers also is expected to stimulate the demand for disposable hospital supplies. In addition, emerging growth countries hold strong potential for the disposable hospital supplies market because of higher investment in healthcare facilities.
The demand for surgical intervention is on the rise across the world due to the increase in chronic diseases such as coronary heart disease, cancer, diabetes, obesity and osteoarthritis. It is estimated that approximately 34 million Americans undergo surgery every year, and the number is expected to increase due to the aging population. The rapid development of the healthcare infrastructure in developing countries has made surgical intervention available for many patients.
Some of the common surgeries, such as the removal of coronary artery obstruction for cardiovascular diseases, are expected to grow at a CAGR of 4 percent over the next few years. There were a total of 4.9 million surgeries globally for the removal of coronary artery obstruction in 2007 and this number is expected to reach 6.5 million by 2015. A total of 7.5 million blood vessel procedures were conducted globally in 2007, which is expected to reach 12.2 million in 2015, after growing at a CAGR of 6 percent. In the orthopedics market, 1.5 million hip replacement surgeries were performed globally in 2007 and this number is expected to reach 2.1 million by 2015, growing at a CAGR of 5 percent, according to the report. In addition, there were a total of 1.5 million knee replacement surgeries globally in 2007 and this number is expected to grow at a CAGR of 6 percent to reach 2.4 million in 2015. This increase in surgical procedures necessitates the need for disposable hospital supplies such as gloves, drapes, gowns and procedure kits.
Procedure kits and trays is the largest segment within the disposable hospital supplies market, with a market size of $4.2 billion in 2010. The time involved in preparation for surgery can be reduced significantly by the use of prepackaged procedure kits and trays. The time saved enables the hospital to improve productivity, which, in turn, encourages demand for procedure kits and trays, researchers noted. With the significant rise in the number of surgical interventions, healthcare professionals are burdened with treating a greater number of patients. To meet the demand of this higher influx of patients, they need to increase productivity and employ time-saving methods, the report explained. In surgical interventions, a significant amount of time is spent on the preparation of the operating room involving the collection and inspection of operating room supplies such as the surgical equipments and other accessories.
Time also is saved by the procurement and supply divisions as attention towards individual items is not needed since the individual ordering of products, stock control and in-house assembly and set-up of components is significantly reduced. In addition, there is an increase in the product flow throughout the hospital by using the logistic services offered by the supplier.
U.S. Market Still Key
The United States is the key market for disposable hospital supplies and is forecast to reach $6.4 billion by 2017 with a CAGR of 8 percent during the forecast period 2010-2017. The procedure kits and trays segment will continue to lead the market reaching $3.1 billion by 2017, growing at a CAGR of 9 percent during the forecast period 2010-2017. The gloves segment of the market is expected to be valued at $1.5 billion in 2017 after growing at a CAGR of 6 percent, while the drapes segment is estimated to grow at a CAGR of 7 percent to reach $1.1 billion by 2017. The gowns segment of the market is expected to be valued at $593.7m in 2017 after growing at a CAGR of 6 percent during the forecast period. The U.S. market is expected to grow due to the increase in the number of surgeries, patient awareness and the availability of reimbursement.
The global disposable hospital supplies market is a highly fragmented market with many different players, according to the report. Cardinal Health was “the major player.” Researchers noted, with a market share of 17 percent in 2010. Other players who held significant market shares were Mölnlycke Health Care, 3M Healthcare, B Braun Melsungen and Kimberly-Clark.