The year 2020 brought unprecedented challenges to various sectors, and the healthcare industry was no exception. In a comprehensive market analysis, the impact of COVID-19 on the European anesthesia, respiratory, and sleep management segments unfolded in distinctive ways. However, as we delve into the current landscape, there’s a notable story of resilience and recovery. By 2023, these European market segments have largely stabilized, projecting a steady growth trajectory for the foreseeable future. Let’s dive into how these market segments performed throughout 2023 and how they are projected to perform into 2030.
WHAT ARE THE FASTEST-GROWING MARKET SEGMENTS?
In 2023, the European Anesthesia, Respiratory, and Sleep Therapy (ARS) market witnessed remarkable growth, with anesthesia disposables, oxygen therapy devices, and sleep diagnostic devices emerging as the fastest-growing segments. These markets were propelled forward by strong drivers that far outweighed the challenges. Additionally, ADUs, anesthesia monitors, respiratory disposables, and ventilators demonstrated substantial growth, sharing similar drivers with the fastest-growing segments but facing unique limitations. ADUs and monitors grappled with supply chain disruptions due to the intricate nature of these complex machines, while ventilators and respiratory disposables experienced overstocking resulting from the surge in demand during the COVID-19 pandemic.
WHAT ARE THE SLOWEST-GROWING MARKET SEGMENTS?
On the other hand, the nebulizer device and therapeutic OSA (Obstructive Sleep Apnea) device markets exhibited slower growth in 2023, despite both segments maintaining modest single-digit growth. Nebulizers faced challenges from competing technologies within their segment and from alternative markets like inhalers. In contrast, the OSA market encountered limitations due to market maturity and downward price pressure, restricting any significant increase in Average Selling Price (ASP). Notably, nebulizers shared common drivers with other respiratory markets, while the OSA market primarily thrived on the increasing awareness among the general population regarding the symptoms and potential dangers of untreated sleep apnea. Official European clinical estimates indicated that only around 25% of potential OSA patients had been diagnosed, although the percentage of diagnoses was on the rise.
ANOTHER GROWTH FACTOR: INFLATION
In the dynamic landscape of 2022, global inflation rates surged to their highest levels since 1991-1992, casting a ripple effect on various sectors, particularly within the medical markets, including the predominant realm of ARS. The escalation in production costs became inevitable, compelling stakeholders to recalibrate their strategies. Despite the prevailing downward price pressures in many ARS markets, the prices of numerous products experienced an upward adjustment to offset the mounting costs. Interestingly, this phenomenon wasn’t exclusive to the medical device industry, as a myriad of sectors grappled with price hikes. Remarkably, consumers exhibited a nuanced understanding of these economic shifts, resulting in the acceptance of increased prices. Surprisingly, rather than witnessing a corresponding dip in unit sales due to the augmented prices, the market experienced an unexpected growth, underscoring the resilience of consumer demand in the face of economic fluctuations.
CONCLUSION
In conclusion, the European Anesthesia, Respiratory, and Sleep (ARS) market’s journey from the challenges of 2020 to stability in 2023 showcases industry resilience. Fast-growing segments like anesthesia disposables, oxygen therapy, and sleep diagnostic devices have driven overall growth, overcoming unique obstacles. Slower growth in nebulizer and OSA device markets reveals nuanced dynamics influenced by competition, maturity, and pricing. Global inflation’s unexpected impact on ARS, with consumers accepting price adjustments, underscores the industry’s adaptability. As we look ahead to 2030, the ARS market’s story is one of adaptation, growth, and overcoming challenges to provide vital healthcare solutions in a dynamic society.
