Insulin infusion pumps to lead market
Insulin infusion pumps to lead market
Latest report forecasts continued growth
In its report on the U.S. Infusion Pump Market for the period 1994-2004, Frost & Sullivan, an international marketing, research, and training company based in Mountain View, CA, reports insulin pumps and enteral feeding pumps will experience the greatest growth.
In 1997, the total market for infusion pumps in the United States was estimated at more than $586.4 million, with a revenue growth rate of 5%. Trends that affected the market and will likely continue to play a major role are the consolidation of market participants, cost-containment pressure, and a change in care settings to follow the patient from one care setting to another.
A period of growth
The report forecasts the insulin infusion pump market to experience the greatest growth from 1997 to 2004, with an anticipated growth of 17%. The total insulin infusion pump market generated revenues of $44.6 million in 1997, with a growth rate of 19%.
The market consists of two segments: external insulin infusion pumps and implantable insulin infusion pumps. However, because implantable pumps are not yet approved by the Food and Drug Administration, the U.S. market is represented only by the external insulin infusion pumps.
The report notes the market drivers for this particular segment are tighter control over blood glucose level, uncaptured patient population, product features and an increased number of prescriptions by primary care physicians. Restraints include price comparison, reimbursement, customer fears, and the rapid growth of oral drugs.
Also looking at rapid growth is the implantable infusion pump market. The report forecasts a growth of 14.3% from 1997-2004, following a growth rate of 8% on revenues of $80.6 million in 1997.
Market drivers figure to be a large potential patient population, Class III classification, ease of use, reliability and efficiency of the product, and a pushed-based marketing strategy. Restraints are likely to include replacement rate, uncertainty about life expectancy of product, cost, and catheters.
Two syringe markets
The syringe infusion device market also enjoyed a growth rate of 8% in 1997 on generated revenues of $46.3 million. The compound annual growth rate from 1997 to 2004 is forecast at 9%. The market is broken into two segments: syringe infusers and syringe infusion pumps.
The enteral feeding pumps market grew 13% from 1994-97, with generated revenues of $51.7 million in 1997. However, the anticipated growth rate from 1997-2004 is just 6.5%, largely due to market restraints of reimbursement issues, contamination risks, the training required, and the transition from parenteral to enteral nutrition.
When it comes to the ambulatory infusion pump market, the 6.2% forecasted growth rate comes as welcome news after 1% growth for the $65.7 million revenue market. Composed of two segments, non-electronic and electronic infusion pumps, the decline in reimbursement for home infusion could be a leading restraining factor for non-electronic pumps. While non-electronic pumps are easier to use and cheaper than electronic pumps, the electronic pumps are better suited for long-term therapies and offer a wide range of infusion configuration.
The large-volume infusion pumps market generated revenues of $297.5 million in 1997, but experienced just 1% growth and is forecast to grow at just 1.6% from 1997-2004. Leading restraints on growth will be hospital consolidation, training issues, bundling practices, and increasing importance of GPOs (group purchasing organizations). Market drivers will be product features, a decrease in disposable prices, increasing computer interface, and multichannel/single channel option.
A total of 36 U.S. companies were involved in 1997. Leading factors in the changing market dynamics include the concentration of manufacturers and an emergence of a number of smaller competitors. The report notes large competitors failed to rapidly react enough to infusion pump market changes, resulting in small competitors being able to capture market share in areas not covered at the time by the large, well-established manufacturers. Frost & Sullivan expects a new wave of concentration will take place that will reduce the number of total competitors.
With competition in the market based on product features, service, and price, the report notes most of the products are complex; thus, requiring significant investment into research and development. This restraint results in an infrequent launch of products.
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