Ventilators

Ventilators Global Market Outlook:

MARKET OVERVIEW

Global market size – $3.9 billion (2022)

Expected to grow at a CAGR of ~6 percent Y-o-Y

• The global demand is expected to grow at approx. 6 percent CAGR through 2022-2028

• The increasing incidence and prevalence of respiratory diseases worldwide and the need for critical care to the rising geriatric population have led to increased demand for ventilators apart from the current COVID-19 pandemic situation

• Market vendors are leveraging the Emergency Use Authorizations (EUA) and increasing production capacities

• Governments are assigning contracts and buying in bulk from the MedTech companies

Porter's Analysis on Ventilators

The complexity involved in sourcing raw material due to shortages for electronic components and lack of freight availability has a massive impact on supply globally. Demand for ventilators due to the COVID-19 pandemic drives the market for advanced technology & innovations.

Supplier Power

• Ventilators market is with a decent number of significant suppliers with immense category expertise, having huge variants of products and competitive services offerings across regions

• Hospitals or buyers switching from current suppliers to new ones is very expensive

Barriers to New Entrants

• Tremendous medical, R&D expertise, Capital requirements makes it difficult for new entrants, especially for complex invasive or mechanical ventilators

• Colossal competition and many of the company profits depend on the volume of sales

• Complying with global regulatory requirements remains a crucial challenge for medium to complex medical

• A good distribution network is essential to offer better products and after-sales services

Intensity of Rivalry

• Intense competition for being the market leader with highly innovative products among the existing top players, viz. Philips, GE healthcare, Vyaire medical, etc.

• Most of the mid-tier firms compete on the clients' prices as they have very little differentiation in the services

Threat of Substitutes

• As such, there are no substitutes to critical medical ventilators; however, there can be different products that can be used depending on the end application, such as home or hospital, etc.

Buyer Power

• Medium to low bargaining power for medical device clients as the number purchased by an individual customer, in general, is meager

• Lower switching power owing to the higher cost associated with the devices

Cost Structure Analysis : Ventilators

• Technological advancements like less weight, more efficient and low-cost portable ventilators drives the demand for respiratory care devices in the market, hence raw materials and components contributes to the major portion of manufacturing since the critical components are important which needs to work each time of usage without any failure.

• Raw Materials and Components Cost: Miniaturization, portable devices are the key innovations in the industry with more accuracy & efficiency drives the critical components price upwards in the respiratory care devices industry globally.

• Labor and Technology Cost: Adoption of latest technology drives the spend on R&D to develop new products will also lead to increase in cost of the products. 3D manufacturing and AI technology advancement requires workforces with technical knowledge.