U.S. Pulse Oximetry Sensors and Capnography Supplies and Blood Pressure Cuffs and Electrocardiogram Supplies Markets

The past decade witnessed the proliferation of multi-parameter patient monitoring equipment in U.S. hospitals and currently demand for such equipment has reached a saturation point. In fact, pulse oximetry monitoring technologies have become a 'standard-of-care' in patient monitoring and every multi-parameter patient monitoring device sold is accompanied by a pulse oximetry sensor, either integrated into the device or attached as a module. Such equipment is now ubiquitous in the operating room, post-anesthesia care units, as well as critical, intensive, and intermediate care units. Therefore, the demand is likely to be restricted to the replacement market, resulting in a slowdown in growth rate.

This Frost & Sullivan research analyzes the markets for pulse oximetry sensors, capnography supplies, non-invasive blood pressure cuffs, and electrocardiogram supplies. Each of these categories is further discussed based on: multi-parameter patient monitoring versus stand-alone equipment; disposable versus reusable equipment; and hospitals versus alternate care facilities. The research also examines the latest market trends and the critical factors driving or limiting growth, while providing revenue estimates, market share information, and strategic recommendations.

Separate Contracts Hinder Efficient Replacement of Supplies

Large group purchasing organizations (GPOs) process more than 80 percent of medical supply purchase orders pertaining to hospitals in the United States. GPOs have historically established separate contracts for equipment and supplies and as a result, the equipment provider is not always considered by the GPO or the customer at the time of replacement supplies. In fact, participants catering to aftermarket supplies - for instance, manufacturers of blood pressure cuffs - have begun to feel constrained by the way GPOs handle contract supplies.

"If patient monitoring equipment manufacturers are able to include a supply replacement clause as part of the original equipment contract, then customers/GPOs will be compelled to notify the equipment provider during replacement," opines the analyst. "Actually, this clause increases the economies of volume, which in turn, could lower the overall cost of supply replacement." However, such a clause has been resisted by the GPOs for reasons best known to them, thereby, hindering efficient replacement of supplies.

Competition Increases Following Patent Expiration

The recent patent expiry of R-Cal algorithm, one of the primary pulse oximetry sensor technologies offered by Nellcor is likely to increase competition. Many companies are anticipated to enter this segment with the expectations of capturing market share from Nellcor, by offering Nellcor-compatible sensors at a lower price. The launch of a slew of inexpensive sensors is expected to decrease revenue flow for participants in this already fragmented market. The existing manufacturers are only too aware of the situation and are getting ready for a high-voltage price war in the coming months.

Participants have to focus on non-traditional applications and the demand arising out of alternate healthcare facilities such as physician offices, clinics, and ambulatory care centers to sustain growth in a highly competitive market. "With the growing emphasis on preventative care, the demand for patient monitoring equipment in alternate facilities is bound to increase, giving a leeway to participants to counter demand saturation and market maturity in established product segments," concludes the analyst.