Medical Gas Equipment Market Outlook
- Published February 23, 2023
- By Ken Coffman
Current Trends in the Medical Gas Equipment Market
The medical gas equipment market is expected to increase by $3.79 billion by 2025.
Increasing product innovations will fuel the growth of the global medical gas equipment market. End-users in the medical gas equipment market require customizable solutions for different applications. Hence, vendors have developed innovative products that installers can customize. Customization without compromising product quality is a popular strategy followed by vendors. Currently, Tri-Tech Medical has multiple patented innovations. Tri-Tech Medical is increasing its efforts to ensure that healthcare facilities can use these patents to improve its existing products. Miniaturization is also another major trend in the market. Medical gas vendors have realized the significance of integrating the cylinder valve and the pressure regulator into a single device with all necessary control functions combined. This customization makes delivering gases easier and faster, especially for medical gas therapy. Key executives of leading companies believe that the trend of miniaturization will gain popularity in the future.
There has been a positive impact on market growth during and after the COVID-19 era. The growing home healthcare market is notably driving the growth of medical gas equipment. There are several current trends in the medical gas equipment market, including:
- Increase in demand for home healthcare: The need for medical gas equipment is increasing as more patients prefer to receive treatment in the comfort of their homes. This trend is driven by factors such as convenience, cost savings, and the availability of portable medical gas equipment.
- Advancements in technology: There have been significant advancements in medical gas equipment technology, including developing more compact, lightweight, and portable devices. These devices have increased the use of medical gases in remote and rural areas where medical facilities may be limited.
- Growth of the Biomed gas market: The Biomed gas market is proliferating as more hospitals and clinics adopt biomed gases as a safe and reliable alternative to traditional medical gases. Biomed gases are produced using advanced technologies and meet strict quality standards, making them suitable for medical applications.
- Focus on safety and regulation: There is a growing focus on security and law in the medical gas equipment market. Governments and regulatory bodies are increasingly imposing strict medical gas equipment standards to ensure patients receive safe and effective treatment.
- Rising demand for medical oxygen: The need for medical oxygen is growing due to the increasing prevalence of respiratory diseases and the aging population. These factors have led to a growing demand for medical oxygen equipment, such as oxygen concentrators and oxygen cylinders, used to provide oxygen therapy to patients with respiratory problems.
Key Medical Gas Equipment Market Drivers
The growing Point-Of-Care Diagnostics (POCD) and home healthcare markets are major driving factors for the growth of the medical gas equipment market. POCD and home healthcare are two closely associated markets for medical gas equipment, as breathing devices and breathalyzers are used extensively in POCD and home healthcare. The increasing prevalence of respiratory infections drives the demand for POCD, as these infections increase the risk of disease transmission when the patient visits a healthcare facility. In developed countries, the cost burden of sexually transmitted diseases (STDs) and respiratory infections is increasing. Hence, the demand for POCD is also growing, as it helps diagnose diseases faster than conventional methods.
Moreover, lower costs and improved healthcare convenience drive the market’s growth. Respiratory conditions such as asthma and COPD are some of the leading causes of immobilization among patients, affecting the demand for home healthcare.
Several other critical drivers of the medical gas equipment market are outlined below:
- 1. Growing incidence of chronic diseases: The increasing incidence of chronic diseases, such as respiratory illnesses, cardiovascular diseases, and neurological disorders, is driving the demand for medical gas equipment. These diseases often require medical gases, such as oxygen, nitrous oxide, and carbon dioxide, to support patient treatment and management.
- 2. Advancements in healthcare technology: The advancement of healthcare technology has resulted in the development of new and improved medical gas equipment. These advancements have improved the accuracy and effectiveness of medical gas delivery and have made it easier for healthcare professionals to administer medical gases safely and efficiently.
- 3. Increased demand for home healthcare: The need for home healthcare is increasing due to the growing preference for patients to receive treatment in the comfort of their own homes. This trend is driven by factors such as convenience, cost savings, and the availability of portable medical gas equipment.
- 4. Expansion of the healthcare industry: The healthcare industry is expanding globally, leading to an increase in the number of hospitals, clinics, and healthcare facilities. This growth drives the demand for medical gas equipment as these facilities require a steady and reliable supply of medical gases to support patient treatment and management.
- 5. Government initiatives and regulations: Government initiatives and regulations play a significant role in driving the growth of the medical gas equipment market. Governments are increasingly investing in healthcare infrastructure and are implementing regulations to ensure the safety and quality of medical gas equipment. These regulations help to ensure that patients receive safe and effective treatment and drive the growth of the medical gas equipment market.
Key Medical Gas Equipment Market Challenges
The declining reimbursements for respiratory therapies are a significant challenge for the global medical gas equipment market growth. Globally, asthma, respiratory allergies, and COPD prevalence is increasing. However, reimbursements for treatments are reducing. Hence, patients are beginning to explore other options, and the cost is also high. Moreover, many programs struggle to stay in operation due to the low reimbursement from the Centers for Medicare and Medicaid Services (CMS). Limited rebates also discourage the development of new therapies. The CMS system reduces reimbursements for respiratory care. The implementation of the CMS system also affects the home healthcare market. Home respiratory therapy providers continue to face reductions in reimbursements. However, as per the formal policies that have yet to be revised to provide an adequate refund to patients undergoing respiratory therapy, the cost is being incurred by patients. Hence, vendors in the home healthcare market are unable to sell their respiratory products. The non-coverage of respiratory conditions is likely to affect the growth of the global medical gas equipment market.
The medical gas equipment market faces several other challenges, including:
- 1. High cost of medical gas equipment: The cost of medical gas equipment can be high, especially for advanced and specialized devices. High costs can limit the affordability and accessibility of medical gas equipment, particularly in low- and middle-income countries with limited healthcare budgets.
- 2. Limited availability of medical gases: The availability of medical gases, such as oxygen and nitrous oxide, can be limited in certain regions, especially in remote and rural areas. This limited availability can make it difficult for healthcare facilities to provide adequate medical gas support to patients in these areas.
- 3. Stringent regulations: The medical gas equipment market is subject to strict rules to ensure patient safety. These regulations can make it difficult for manufacturers to bring new and innovative medical gas equipment to the market and can increase the cost of compliance for manufacturers.
- 4. Lack of skilled personnel: Using medical gas equipment requires specialized knowledge and skills, and a lack of qualified personnel can limit the effective use of medical gas equipment. These technical skills are particularly sparse in remote and rural areas with limited access to trained personnel.
- 5. Competition from low-cost alternatives: The medical gas equipment market faces competition from low-cost options, such as compressed gas cylinders. This competition can limit the growth of the medical gas equipment market, especially in low- and middle-income countries where cost is a significant consideration.
Who are the Major Medical Gas Equipment Market Vendors?
There are many significant vendors in the medical gas equipment market, including:
- 1. Tri-Tech Medical: Since 1989, Tri-Tech Medical has been a manufacturer of high-quality medical gas piping equipment. Members of NFPA and MGPHO, Tri-Tech is committed to providing innovative medical gas piping products designed with features found nowhere else.
- 2. Linde Group: The Linde Group is a German company specializing in producing and distributing industrial and medical gases. The company offers a wide range of medical gas equipment, including oxygen concentrators, oxygen cylinders, and medical vacuum systems.
- 3. Airgas: Airgas is an American company that produces and distributes industrial and medical gases. The company offers a wide range of medical gas equipment, including oxygen concentrators, oxygen cylinders, and medical vacuum systems.
- 4. Air Liquide: Air Liquide is a French company specializing in producing and distributing medical gases and related equipment. The company offers a wide range of medical gas equipment, including oxygen concentrators, oxygen cylinders, and medical vacuum systems.
- 5. Atlas Copco: Atlas Copco is a Swedish company that produces and distributes industrial gases and medical gases. The company offers a wide range of medical gas equipment, including oxygen concentrators, oxygen cylinders, and medical vacuum systems. These are a few examples of the significant medical gas equipment market vendors. The market is highly competitive, and many other large and small players offer medical gas equipment and related products.
Medical Gas Equipment Market Value Chain Analysis
The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The medical gas equipment market value chain can be analyzed as follows:
- 1. Raw Material Suppliers: Suppliers provide the raw materials required to manufacture medical gas equipment. These materials include metals, plastics, and other components used in the production of medical gas equipment.
- 2. Medical Gas Equipment Manufacturers: Medical gas equipment manufacturers are responsible for producing medical gas equipment, including oxygen concentrators, vacuum systems, and other medical gas equipment.
- 3. Distributors and Wholesalers: Distributors and wholesalers play a vital role in the medical gas equipment market by providing medical gas equipment to hospitals, home healthcare providers, and other end-users.
- 4. Service Providers: Service providers play an essential role in the medical gas equipment market by providing maintenance and repair services for medical gas equipment. These services are critical to ensure the proper functioning of medical gas equipment and extend the equipment's life.
- 5. End-users: End-users, such as hospitals, home healthcare providers, and long-term care facilities, are the final consumers of medical gas equipment. These end-users use medical gas equipment to support the respiratory needs of their patients.
These are the critical components of the medical gas equipment market value chain, and each element plays a crucial role in the production and distribution of medical gas equipment. The market value chain is complex, and it requires close collaboration between the various components to ensure that medical gas equipment is manufactured, distributed, and used effectively to support the respiratory needs of patients.
Which are the Key Regions for Medical Gas Equipment Market?
The medical gas equipment market is global, and it is snowballing in several key regions, including:
- 1. North America is one of the largest and most mature markets for medical gas equipment. The area has a well-established healthcare infrastructure, high healthcare expenditure, and a large aging population, all driving the demand for medical gas equipment. 43% of the market's growth will originate from North America. The U.S. is the key market for medical gas equipment in North America. The growing need for medical gas cylinders during chronic disease treatment and surgeries will facilitate the medical gas equipment market growth in the United States. Market growth in this region will be faster than in other areas.
- 2. Europe is also a significant market for medical gas equipment, driven by factors such as a growing aging population, increased demand for home healthcare, and expanding the healthcare industry.
- 3. The Asia-Pacific region is the fastest-growing market for medical gas equipment, driven by factors such as a growing middle class, increasing urbanization, and the rapid expansion of the healthcare industry.
- 4. The Middle East and Africa are also emerging markets for medical gas equipment, driven by government initiatives to improve healthcare infrastructure and increase healthcare expenditure.
- 5. Latin America is a growing market for medical gas equipment, driven by factors such as increasing healthcare expenditure and expanding the healthcare industry. These are the critical regions for the medical gas equipment market, and the demand for medical gas equipment is expected to grow in all of these regions in the coming years.
COVID Impact and Recovery Analysis
In 2020, the outbreak of COVID-19 in North America fueled the demand for medical gas equipment, primarily in hospitals and clinics and in-home healthcare settings. This impact has propelled the need for medical gas equipment, such as vacuum systems, manifolds, flowmeters, compressed oxygen cylinders, and medical air compressors, specifically in critical care units treating COVID-19 patients in ventilators with prescribed supplemental oxygen. The demand for medical gas equipment will continue to grow due to the rising number of people with chronic respiratory diseases in the region.
What are the Revenue-generating End-user Segments in the Medical Gas Equipment Market?
Hospitals and clinics use medical gas equipment for therapy and diagnosis. Various gases such as oxygen, nitrogen, medical air, and carbon dioxide are used in patient rooms to sterilize the environment and for respiratory therapy. The medical gas equipment market serves a wide range of end-user segments, and the following are some of the significant revenue-generating end-user segments in the market:
- 1. Hospitals: Hospitals are the largest end-user segment for medical gas equipment, accounting for a significant portion of the market share. Hospitals require medical gas equipment for various applications, including respiratory care, anesthesia, and critical care.
- 2. Home healthcare: The segment is proliferating, driven by the increasing demand for home-based medical care. Home healthcare providers use medical gas equipment, such as oxygen concentrators and portable oxygen cylinders, to provide respiratory support to patients at home.
- 3. Ambulatory surgical centers (ASCs): Ambulatory surgical centers are another significant end-user segment for medical gas equipment. These centers require medical gas equipment, such as oxygen concentrators and vacuum systems, to support a variety of surgical procedures.
- 4. Clinics: Clinics are a vital end-user segment for medical gas equipment. Clinics use medical gas equipment, such as oxygen concentrators and vacuum systems, for various applications, including respiratory care and anesthesia.
- 5. Long-term care facilities: Long-term care facilities are another essential end-user segment for medical gas equipment. These facilities require medical gas equipment, such as oxygen concentrators and vacuum systems, to support the respiratory needs of their patients.
These are the major revenue-generating end-user segments in the medical gas equipment market. The demand for medical gas equipment is expected to grow in these segments in the coming years.
What is the future outlook of the medical gas equipment market?
The future outlook for the medical gas equipment market is buoyant and expected to grow significantly in the coming years. Some of the factors that are expected to drive the growth of the market include:
- 1. Aging population: The aging population is one of the critical drivers of the medical gas equipment market, as older people are more likely to require medical gas support. As the global population ages, the demand for medical gas equipment is expected to increase.
- 2. Growing home healthcare market: The growing home healthcare market is also expected to drive the growth of the medical gas equipment market. As more people opt for home healthcare, the demand for portable and home-use medical gas equipment is expected to increase.
- 3. Increasing healthcare expenditure: In developed and developing countries, increasing healthcare expenditure is expected to drive the growth of the medical gas equipment market. As governments invest more in healthcare, the demand for medical gas equipment is expected to increase.
- 4. Technological advancements: Technological advancements in medical gas equipment are expected to drive the growth of the market. The development of new and innovative medical gas equipment is expected to increase the efficiency and safety of medical gas equipment and drive market growth.
- 5. Government initiatives: Government initiatives to improve healthcare infrastructure, particularly in developing countries, are expected to drive the growth of the medical gas equipment market. As governments invest in healthcare, the demand for medical gas equipment is expected to increase.
Based on these factors, the future outlook for the medical gas equipment market is positive, and the market is expected to grow significantly in the coming years.
