A ventilator is a medical device that aids an individual to breathe when the lungs are unable to perform their designed tasks itself. There are different types of ventilators available that are utilized based on the gravity of the patient’s conditions. For instance – non-invasive ventilators are primarily used when the patients tend to suffer acute pulmonary malfunction while the invasive techniques are the recommended choice for the healthcare personnel in case of a serious patient condition.
The number of emergency admission in hospitals has increased over the years. For instance, in the United Kingdom, the total number of patients admitted in the hospitals in the emergency condition has increased from 5,010,670 in 2008-09 to 6,437,959 in 2018-19 (source: Hospital Episode Statistics, NHS Digital). Similarly, there were 36,353,946 admissions in the United States Hospital in 2018 (source: American Hospital Association). Moreover, the number of COPD cases has been increasing worldwide, with the World Health Organization (WHO) estimating the burden of moderate to severe chronic obstructive pulmonary disease (COPD) to be around 65 million individuals. Thus, the ventilator market size is estimated to reach US$3,095.180 million by 2025
Hospital Emergency Admissions in the United Kingdom, in Thousands
Source: Hospital Episode Statistics, NHS Digital
As of 30th July 2020, there are 17,195,62 recorded COVID-19 cases worldwide, with the United States, Brazil, and India cumulatively constituting more than 50% of the cases. Moreover, only 10% of the patients may require mechanical ventilation support in order to aid in the patient’s recovery and treatment. However, in absolute terms, the 10% figure is high which is adding significant pressure on the government to ensure that adequate beds and ventilators are available to patients – should a need arise. The COVID-19 pandemic has swelled the revenue generation opportunity for the manufacturers, with the ventilator market, projected to surge in 2020.
Developing Healthcare Infrastructure Driving the Market in Asia Pacific
China has made significant progress over the years in improving the access to healthcare services to its large proportion of the population. This is indicative of the fact that more than 95% of the population has been covered under healthcare insurance. Moreover, in 2016, the government of China announced Health China 2030 blueprint that is based on the principle of prioritizing health, supporting innovation and scientific development, and to boost healthcare services in the remote regions of the country.
Number of Hospitals in China, in Units
Source: National Bureau of Statistics of China
Moreover, the number of hospitals in the country has increased at a CAGR of 5.87% from 20,918 units in 2010 to 33,009 units in 2018 (Source: National Bureau of Statistics of China) with Hebei, Jiangsu, Shandong, Henan, Hunan, Guangdong, and Sichuan cumulatively constituting 41.85% share. Similar efforts have been noticed in India as well where the focus is growing to reduce the waiting time and improve the access to healthcare services even in remote location as well. The developing healthcare infrastructure is providing an opportunity for ventilator manufacturers to generate higher revenues. Moreover, as a result of the COVID-19 pandemic, the Chinese manufacturers are working on the full capacity to meet the demand – both from the domestic and foreign markets. In fact, China has approximately twenty-one multifunction ventilator manufacturers out of which eight have obtained the European Union’s CE marking. Moreover, these companies have shipped more than 1,000 multifunction ventilators to both the domestic and foreign hospitals in order to treat critical COVID-19 patients. Similarly, Kerala State and Drugs Pharmaceutical (KSDP) is expected to start the production of a low-cost ventilator after getting the necessary approvals from the Government of Kerala and Indian Council of Medical Research (ICMR). The pandemic has resulted in many companies working on the full capacity to meet the requirement of the current situation, however, apart from the COVID-19 situation, the healthcare industry in the emerging countries have taken measures to cater to the need of mass proportion of the population that is projected drive the market growth in the next five years.
ABOUT THE AUTHOR
Siddharth David is a Senior Market Research Analyst at Knowledge Sourcing Intelligence LLP. Siddharth’s expertise lies in offering predictive analysis and an all-inclusive outlook of different industry verticals from both the macro and micro point of view, with the special knack in market sizing and delivering key strategic insights. To read more articles by him, and for more information regarding multiple global markets, visit www.knowledge-sourcing.com.