The Home Is the Place to Do Good Business

The European intravenous (IV) therapy and enteral nutrition device market earned revenues of US$2423.0 million in 2008 and these are expected to grow to US$2981.2 million in 2012, according to new analysis from Frost & Sullivan (F&S). Its report covers catheters, infusion pumps, administration sets, feeding tubes and feeding pumps.

“IV therapy devices companies are increasingly focusing on developing computer-aided design for their products, resulting in improved and more efficient coordination of procedures,” notes F&S Senior Research Analyst Janani Narasimhan. “Technological advances will not only make the procedures safer, but also smarter and more efficient for both IV therapy and enteral nutrition devices.”

European hospitals have recently enforced strict regulations, which have resulted in the introduction of diagnostic related groups (DRGs). This approach focuses solely on downsizing and reducing the time spent by patients in hospitals, which has raised the value of homecare in Europe. In a parallel development, it is now proven that IV therapy can be delivered safely and effectively in patients’ homes.

The medical device sector has been on a “bull run” for the past few years, says F&S, matching, if not frequently, exceeding growth expectations. No other sector within healthcare has performed as consistently and successfully as medical devices.

Medical device companies grew their aggregate top line at an annual rate of eleven per cent. In the context of higher-end medical devices, which contribute substantially towards the total market revenue, doctors’ ability to perform certain procedures is often linked to the device itself. Most of these devices are used in high-acuity setting and hence, cannot be ignored.

“Companies that manufacture devices to treat life-threatening conditions will continue to be immune to the recent economic tensions,” concludes Narasimhan. “Currently, the underlying demand for medical devices will lead to a comparatively smooth business cycle and the market will, in all probability, continue its strong lead.”
A majority of the European IV therapy and enteral nutrition devices market is held by a few-tier one and tier-two participants. This highly concentrated market implies intense competition. Accordingly, market entry is difficult. This acts as a major restraint as potential participants are being driven out of the market. The end result is market stagnation and dynamism.

“The declining prices of IV therapy and enteral devices are chiefly due to bulk purchases and tenders,” adds Narasimhan. “Often manufacturers bundle together products, which results in the slashing of prices. It is not always possible for smaller companies to reduce their prices and hence might lead to further market consolidation.”

For more information on the F&S study, European IV Therapy and Enteral Nutrition Devices Market, e-mail Katja Feick: katja.feick@frost.com www.medicaldevices.frost.com

Tags: European intravenous therapy and enteral nutrition device, Frost & Sullivan