WELLESLEY, MA--(Marketwired - June 21, 2016) - A host of factors, including increasing life expectancy and improved accessibility to healthcare facilities in emerging economies are growing the global market for anesthesia and respiratory devices. BCC Research reveals in its new report that the major industry players are significantly investing in the development of new and improved anesthetic and respiratory devices.
The global market for anesthetic and respiratory devices is expected to reach nearly $24.2 billion by 2020 from $14.4 billion in 2015, reflecting a five-year compound annual growth rate (CAGR) of nearly 10.9%. The respiratory device segment is estimated to grow at a five-year CAGR of 12.9%, increasing to $14.7 billion by 2020, while the anesthetic device segment is expected to reach $9.4 billion in 2020 on an estimated five-year CAGR of 8.2%.
Widespread tech advancements have spurred market growth, stemming mostly from the need for advanced and innovative new machines and equipment. The evolution of stand-alone machines to fully integrated systems combined with ongoing innovation has increased productivity, efficiency and efficacy of data. The availability of highly sophisticated network workstations comprising anesthesia monitors and anesthesia information management systems (AIMS) has pushed growth, as well. Other key drivers include the increased incidence of COPD, sleep apnea, and asthma and other respiratory disorders. These factors, in turn, have spurred demand for home-based healthcare devices.
The global market is poised to grow, albeit at varying growth rates across different regions. The U.S. and Europe accounted for the highest growth in 2014, $6.2 billion and about $3.6 billion, respectively. However, this should change as Asia, bolstered by an estimated five-year CAGR of 13.2%, appears poised to overtake these regions by 2020. Given the low-cost production and lower taxation on manufactured products in Asian countries such as India and China as compared with those in Western countries, more manufacturers are establishing production facilities in these emerging countries. Their large patient pools, along with increasing government spending on healthcare and growing medical tourism, should fuel growth, as well.
Finally, the Consolidated Appropriations Act of 2016, which was approved in 2015, should accelerate R&D efforts toward the development of new and improved devices for companies eager to take advantage of the tax break.
"The Act has suspended the 2.3% medical device excise tax effective Jan. 1, 2016, ending Dec. 31, 2017," says BCC Research analyst Vijay Laxmi. "This two-year moratorium will benefit medical device manufacturers and importers, including small medical device manufacturers and start-ups. The moratorium on the 2.3% tax is expected to provide impetus to new programs and projects because medical device companies will have a significant amount of cash that was previously allocated for the tax."
Anesthesia and Respiratory Devices: Global Markets (HLC167B) analyzes anesthesia and respiratory devices in terms of growth, size and opportunities for different products and by geographic markets. Analyses of global market drivers and trends, with data from 2014, estimates for 2015, and projections of CAGRs through 2020 also are provided.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.