Makers of medical beds used in hospitals, nursing homes and patients’ homes will see their best growth come from markets outside the United States and Europe, according to healthcare market research firm Kalorama Information.
In its new report, “World Market for Medical Beds,” Kalorama notes, “The $5.3 billion market for medical beds will see small growth over the next five years in traditionally strong markets, but higher growth can be expected in other countries.”
Companies such as Hill-Rom, ArjoHuntleigh, Stryker and Invacare lead the market for medical beds, according to the report. The market is competitive and has become increasingly so since the introduction of cost-cutting measures in European countries and new comparative bidding processes and future device taxes in the United States as part of healthcare reform.
Although these market challenges are somewhat mitigated by the aging populations in these countries and the expected associated increases in diseases and hospitalizations, the result will be small growth rates. This has marketers eyeing nations that are recently building up their healthcare systems.
“The concept of selling to ‘Rest of World’ markets is not new, but companies will have to increase their sales in these markets,” said Bruce Carlson, Kalorama’s publisher. “Hill-Rom has set up a new low cost manufacturing facility in Australia and Mexico. Invacare has a world distribution network and has particularly strong markets in Australia, Canada, New Zealand, and Asia. Kinetic Concepts has seen revenue declines in U.S. and Europe but has sought to offset some of those sales by distribution into Canada, Australia, Singapore, Japan and South Africa.”
“Medical bed makers selling to Europe have already encountered lower sales due to cost restraints, and changes to the U.S. healthcare system are likely to have the same effect,” said Carlson. “At the same time, we expect sales of medical beds in the rest of the world to more than double by 2016.”
“Companies who make medical beds are likely to focus more effort on the growing healthcare systems in the developing world and will see less growth in the developed nations where healthcare cost restrictions are having an impact,” added Carlson.
Kalorama suggests that this focus on markets outside the U.S. and Europe will change the way bed manufacturers look at their marketing efforts and where they locate distributors and sales personnel. The report forecasts that sales outside the U.S. and Europe will grow from 13 percent to 18 percent of total worldwide medical bed sales between now and 2016.
Africa and the Middle East are among the regions that Kalorama sees companies targeting more in the future. India presently has one-fifth of the world average number of hospital beds per million population and an estimated 455,000 additional beds will be required by 2012. China and Brazil have recently introduced increased healthcare spending and facilities construction. Companies profiled in the report have also found customers in the Czech Republic, Russia and Romania.