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Global Automated Endoscope Reprocessors (AER) Market Growth Opportunities, 2021

  • Report
  • 94 Pages
  • September 2021
  • Region: Global
  • Frost & Sullivan
  • ID: 5456998

Breakthrough Technologies and Strategic Collaborations Drive Growth Strategies

While the entire healthcare industry adapts to changes induced by the COVID-19 pandemic, the endoscope reprocessing industry undergoes a major technology transformation. The rise in multiple infection outbreaks from contaminated endoscopes due to faulty endoscope reprocessing and manual errors in cleaning presents huge growth potential for automated endoscope reprocessors (AER), which offer high-level disinfection (HLD) in endoscope reprocessing.

However, the complex design and faulty reprocessing of reusable endoscopes, specifically duodenoscopes which pose the highest risk of patient cross-contamination, have led to a gradual shift toward single-use or disposable endoscopes that require no reprocessing. Following the pandemic, governments are increasingly recommending endoscope manufacturers to simplify endoscope design or shift to disposable ones, especially in the United States. The shift to disposable endoscopes is further supported by the Centers for Medicare and Medicaid granting reimbursement for such endoscopes. Single-use duodenoscopes are preferred in endoscopic retrograde cholangiopancreatography (ERCP) procedures as they offer zero cross-contamination risk and zero reprocessing, repair and maintenance, and labor costs. Leading participants Boston Scientific and Ambu have already introduced single-use endoscopes. These pose a major threat to endoscope reprocessing stakeholders, specifically AER manufacturers, as AERs could become obsolete. AER manufacturers are seeking ways to retain or strengthen their market share in the endoscope reprocessing market.

More and more endoscopic procedures are being conducted outside hospital premises in ambulatory surgery centers (ASC), ambulatory endoscopy centers (AEC), physicians’ own clinics, specialty gastrointestinal clinics, and diagnostic centers. Unlike hospitals that have in-house central sterile supply departments (CSSD) or reprocessing departments, these endoscopy facilities usually engage off-site reprocessing centers for endoscope HLD. Off-site reprocessing facilities have captured a substantial share of the end-user market for AERs, which can be classified into two major segments: single-chamber AERs and dual/multi-chamber AERs. While dual/multi-chambers AERs remain the preference of hospitals and large-scale reprocessing facilities, single-chamber AERs are increasingly being installed in AECs and physicians’ clinics.

The global competitive landscape comprises about 15 AER manufacturers that offer single-chamber and dual/multi-chamber AERs. Apart from Olympus which reprocesses its own brand of endoscopes, the majority of manufacturers offer AERs that can reprocess all types and models of endoscopes. The latest features in AERs, such as track-and-trace and networking capabilities, asynchronous operation, and printer-integrated for cycle display, boost the adoption of advanced AERs. As such, software solution providers could potentially enter the AER market to upgrade AERs with innovative software capabilities. Automating the reprocessing workflow using robots in CSSDs and large-scale reprocessing facilities is another growth opportunity in the market.

This research service provides an overview of the global AER market and AER models. The North American and European markets are saturated with AERs from different makers with distinct specifications. The European market has more AER replacement sales but fewer new AER installations, while the market in the United States gradually transitions to single-use endoscopes. On the other hand, markets outside these regions offer untapped growth opportunities to AER manufacturers. The study also compares endoscope reprocessing and single-use endoscopes in terms of cost, efficiency, infection rate, and facility volume.

Potential strategies and business models for AER manufacturers to grow in the industry are listed in the study, including effective collaborations with endoscope manufacturers, software solution providers, reprocessing stakeholders, third-party service vendors, and off-site reprocessing facilities. AER manufacturers can work with reprocessing stakeholders to offer bundle or reduced pricing for AERs to expand AER installation, while partnerships with endoscope makers can lead to improved endoscope designs and additional disposable components. As regional AER participants dominate the market in developing nations with low-cost, relatively effective AERs, leading global participants could pursue regional collaborations for geographical expansion and technology improvement.

Table of Contents

1. Strategic Imperatives
  • Why Is It Increasingly Difficult to Grow?
  • The Strategic Imperative 8™
  • The Impact of the Top Three Strategic Imperatives on the Global Automated Endoscope Reprocessors (AER) Industry
  • Growth Opportunities Fuel the Growth Pipeline Engine™

2. Growth Environment
  • AER Usage in Care Settings and Endoscope Procedure Facilities
  • Endoscopic Procedures With the Potential to Transition to Complete Single-use Endoscopy in the Future
  • Potential Partnership Roadmap for AER OEMs
  • Snapshot of the Global AER Market

3. Growth Opportunity Analysis
  • Scope of Analysis
  • Important Definitions
  • Global AER Market Segmentation
  • Key Competitors
  • AER Usage in Care Settings and Endoscope Procedure Facilities
  • Key Growth Metrics
  • Growth Drivers for the AER Market
  • Growth Restraints for the AER Market
  • Forecast Assumptions
  • Revenue Forecast
  • Revenue Forecast by Region
  • Revenue Forecast by Product Segment
  • Revenue Forecast Analysis
  • Revenue Forecast Analysis by Region
  • Competitive Environment
  • Revenue Share
  • Revenue Share Analysis

4. Global Analysis
  • Market Overview - Flexible Endoscope Reprocessing
  • Endoscope Reprocessing Cycle
  • Endoscope Reprocessing Steps and AER Usage
  • Global Endoscopic Devices Market - A Snapshot
  • Global Endoscope Reprocessing Market Analysis by Region and End-user Segment
  • North American AER Market Snapshot - Focus on the US
  • US Endoscopic Procedural Shifts by Care Facility
  • European AER Market Snapshot
  • European Endoscopic Procedural Shifts by Care Facility
  • APAC AER Market Snapshot
  • RoW AER Market Snapshot
  • Global Distribution Channels
  • US FDA Recall Order for AER

5. AER Analysis by Manufacturer and Model
  • Summary of Leading AER OEMs and Solutions
  • Global Market Trends - Software-integrated Features Inclusion and Older AER Models Discontinuation

6. Endoscope Reprocessing and Single-use Endoscopes - A Comparative Analysis
  • What Positions Single-use Endoscopes Comparatively Higher in Cost Efficiency than Reusable Endoscopes?
  • Cost Analysis of Endoscope Reprocessing and Single-use Endoscopes
  • Staff Time and Wages Analysis of Endoscope Reprocessing and Single-use Endoscopes
  • Quantity and Cost of Materials Analysis of Endoscope Reprocessing in AER
  • State of Transition from Reusable and Reprocessed Duodenoscopes to Disposable Duodenoscopes
  • Cost Analysis of ERCP Procedures in the US by Duodenoscope Type and Infection Rate
  • Cost Analysis of ERCP Procedures Using Reusable Duodenoscopes by Annual Procedural Volume - A Multicenter Study Instance
  • Boston Scientific Received Additional CMS Reimbursement for EXALT™ Model D - A Threat to AER OEMs
  • Endoscopic Procedures With the Potential to Transition to Complete Single-use Endoscopy in the Future
  • Overcoming the Threat of Single-use Duodenoscopes

7. Existing and Potential Business Models and Strategies
  • Olympus’s Collaboration Strategy With Leading US Hospitals Enables Exploration of Design Innovations
  • Cantel Medical Partners With Censis Technologies for an Integrated Reprocessing Workflow Solution With the Latest Features
  • Steelco SpA Collaborates With Major Endoscope Reprocessing Facilities to Cater to Clinicians’ Existing and Emerging Needs
  • AER OEMs Should Become AER Suppliers and Service Providers to Off-site Reprocessing Facilities to Build Brand Recognition
  • AER OEMs Should Partner with Third-party Service Vendors and/or Take Complete Charge of Entire Reprocessing Units
  • AER OEMs Should Collaborate With Endoscope and/or AER Chemical and Disinfectant Manufacturers for Distribution Network Expansion
  • Potential Partnership Roadmap for AER OEMs

8. Growth Opportunity Universe
  • Growth Opportunity 1: Software Solution Providers Entering the AER Market to Modify Devices with Innovative Software Capabilities
  • Growth Opportunity 2: Collaborations between AER OEMs and Reprocessing Stakeholders for Enhanced Bundle or Reduced Pricing to Increase Adoption
  • Growth Opportunity 3: Automation Penetration Using Robots in CSSDs and Large-scale Endoscope Reprocessing Departments
  • Growth Opportunity 4: Emphasize Design Innovations in Endoscopes to Overcome the Threat of Disposable Duodenoscopes
  • Growth Opportunity 5: Global AER Market Participants Should Focus on APAC and Compete With Regional Participants

9. Next Steps
  • Your Next Steps

10. List of Exhibits

Companies Mentioned

A selection of companies mentioned in this report includes:

  • 3M (Acelity)
  • Ambu
  • Belimed Infection Control
  • Boston Scientific
  • Cantel Medical
  • Censis Technologies
  • ConvaTec Group
  • Fortive
  • Mölnlycke Health Care
  • Olympus
  • Paul Hartmann AG
  • Smith & Nephew plc
  • Steelco SpA
  • Wassenburg Medical