Medical Equipment Market Report 2001 - Market Research Reports

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Medical Equipment Market Report 2001

Description:

The UK market for medical equipment is a dynamic market, which is both competitive and cost-sensitive, and driven by technology. In 2000, it was worth an estimated £2.19bn, following annual growth of 5.2%. The market is diverse in nature, comprising a wide range of products and different technologies. These are broadly divided into two main sectors - medical equipment and medical consumables. The medical equipment sector includes medical instrumentation and apparatus, ranging from expensive electromedical systems which can cost millions of pounds, to simple surgical and medical instruments. The consumables sector typically comprises high-consumption, low-cost, single-use disposable products. These products are used by both the public healthcare sector - the National Health Service (NHS) - which is by far the largest customer in the UK, and the independent sector - in particular, the acute hospital care, and the residential and nursing home care sectors. This is a highly-regulated market in which production and quality standards are high. As a result, barriers to entry are significant, although progress in global harmonisation and European agreements which promote an open market are causing these barriers to fall. The market's supply structure is becoming increasingly dominated by globalised companies. In recent years, market growth has been severely restricted by limited budgets and by various measures aimed at containing the rising costs of healthcare, which have been caused by increasing pressure from an ageing population. The development of new technology is itself adding to the pressure on healthcare services by offering new possibilities for treatment and expanding existing markets. Changes in hospital practices also affect the marketplace and have resulted in higher patient turnover and greater use of single-use, disposable products. Levels of day surgery and outpatient treatment are rising, while the average length of a patient's stay is falling significantly. Both users and manufacturers increasingly see the cost-effective benefits of instrumentation as crucial to success in the marketplace. The advent of telemedicine and the increasing pace of harmonisation are likely to increase the globalisation of the medical equipment market. In an ever more competitive marketplace, products are becoming increasingly complex and have shorter life cycles. Acquisition, merger and collaborative activity are on the increase as companies aim for the timely introduction of innovative products and maximised profitability in a price-sensitive market. The market will continue to be dominated by a smaller number of larger and increasingly international players.

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