Medical Supplies Market Growth – Facilitating Seamless Healthcare

Medical Supplies Market Growth – Facilitating Seamless Healthcare

By Knowledge Sourcing Intelligence Thought Articles

In 2018 the number of cases pertaining to TB was9,025. In the case of Hepatitis, the number of acute infections reported in 2017 was 3366 for Hepatitis A, 3,409 for Hepatitis B, 3216 for Hepatitis c. Further with regards to National Health Expenditures, under current law, national health spending is projected to grow at an average rate of 5.5 % per year for 2018-27 and to reach nearly $6.0 trillion by 2027. The spending related to healthcare in the USA is estimated to grow by 0.8 % points faster than GDP (Gross Domestic Product) per year over the duration between 2018-27. The share of health in GDP is expected to reach 19.4% by 2027 from 17.9% that has been estimated for 2017. Resultantly due to a relatively higher forecasted enrolment growth the average annual spending growth in Medicaid (5.5%) and private health insurance (4.8 %) is anticipated to be superseded by average annual spending growth in Medicare (7.4 %). Lastly, the insured share of the population is expected to remain stable at around 90 % throughout 2018-27 [Source: Centers for Medicare & Medicaid Services].

Medical Supplies Market

Thus, the aforesaid delineates the prospects of medical expenses as a whole in the US. Therefore, with diagnostics covering a significant share of the medical treatment of the country, the demand for medical supplies is certainly poised to increase in the nation contributing to the global medical supplies market growth. Additionally, between 2016 to 2018, in the USA approximately 1,938,098 deaths were registered due to heart diseases. This was followed by deaths due to Malignant Neoplasms which were in the order of 1,796,420 [National Center for Health Statistics (NCHS), National Vital Statistics System].  Besides, the representation produced below provides a panoptic view of the proportion of diseases that necessitate treatment invariably leading to the rise in demand for medical supplies.

10 Leading Causes of Death, United States (2016-2018), in Number of Deaths

Medical Supplies Market

Source: National Center for Health Statistics (NCHS), National Vital Statistics System

The diagnostic medical supplies segment is expected to hold a significant share of the medical supplies market.

A major economic issue, as well as a major public health one Cancer and its ensuing burden, are anticipated to spiral. According to the World Health Organisation (WHO) 18 million cases were registered in 2018. By 2040 around 29 million cases are expected due to the aging and growth of the population. The diagnostic medical supplies segment, specifically tissue diagnostics that is considered as one of the global healthcare industry standards for cancer diagnosis, which are integral to obtain the biological aspects of tumors are expected to whiteness a promising growth and is further estimated to grow during the forecast period. Further, due to an increasing adoption rate of automated tissue-based diagnostic systems because it can reportedly expedite the diagnosis of tumors, swiftly by research institutions, the share of this particular segment is expected to expand. 

For instance, to enhance patient care by employing Roche’s BenchMark ULTRA Automated Advanced Staining System that is used for immunohistochemical testing or in-situ hybridization which in turn enables a faster tumors’ diagnosis, in 2019, West Clinic Cancer Center reportedly partnered with F. Hoffmann-La Roche Ltd. Additionally, a focus on innovating advanced tissue-diagnostic based companion diagnostic tests by market players are contributing potential means of generating revenues. For instance, a qualitative immunohistochemical assay known as PD-L1 IHC 22C3 pharmDx which has been developed to identify non-small cell lung cancer by Agilent in partnership with Merck had reportedly received FDA approval. Another development is the transition from manual to the automation of anatomic pathology workflow is leading to a surge in novel solutions.  Further, the rise in the standardization of processes in laboratories concomitantly with the incorporation of automated molecular diagnostic technologies and incorporation of bioinformatics has resulted in a paradigm shift in workflows related to pathology and has empowered clinicians to prioritize critical cases, reduce the turnaround time and enhance patient outcomes. For example, Philips' IntelliSite Pathology Solution was reportedly integrated into the clinical laboratories intending to improve laboratory efficiency quality and patient safety by Alverno Laboratories in partnership with Royal Phillips. This strategic shift underscores the cognizance of benefits that results from the adoption of digital pathology solution thereby contributing to the expansion in the segment.

The end-user segment pertaining to hospitals is anticipated to surge at a noteworthy rate throughout the forecast period.

Owing to the growing prevalence of diseases that has led to an increase in the average length of a hospital stay in certain countries which are expected to lead to a greater surge in the demand for medical supplies. Considering the pre-COVID times the increasing prevalence of increased susceptibility to contracting Hospital-acquired infections (HAI) or as termed by WHO has as nosocomial infections were one of the main factors that were responsible for driving the medical supplies market. Enterocolitis from C. difficile which is known to be acquired in hospitals or other health care facilities with long-term patients or residents had resulted in deaths that were in the order of 6,118, in 2017 in the USA.  Another factor that was prevalent during that period was a rise in the aging demographics and a surge in chronic conditions amongst the global population along with the increased turnover of hospital rooms. For instance, in 2017, there were 2.6 million hospital beds available for use across the EU-28. Among the EU member states, Germany recorded not only the highest number of hospital beds (661000) but also the highest number relative to population size, with 800 hospital beds per 100,000 population. With the advent of COVID, the share of hospitals as an end-user segment in the market of global medical supplies has been catapulted to a new echelon that is anticipated to contribute to the growth of the global medical supplies market.

The advent of COVID is also expected to facilitate the share of the personal protective equipment segment in the global medical supplies market. It is also pertinent to note that middle-income countries like that are expected to a hold significant share of the global medical supplies market during the forecast period. For example, the health care system of Peru is a four-tier system and is known to constitute facilities that are free forbeneficiaries of the public Integral Health Insurance (Seguro Integral de Salud, SIS)-profit and private not-for-profit (nongovernmental organization and religious) facilities. The aforesaid is also an example of the extent of government investments in healthcare that is expected to contribute to the growth of the global medical supplies market.