Driven by the increased demand during the worldwide COVID-19 pandemic, which lead manufacturers to increase the supply, the global ventilator market is set to transition into a short-term decline before leveling-off to pre-COVID levels. 2020 was a stand-out year for the ventilator market, despite the devastating effects of the pandemic, the ventilator market increased astronomically. Previously that market was valued at nearly $2.4 billion and now it is expected to reach $1.7 billion by 2027. What is causing the market to decline by almost $700 million over the forecast period? Find out below.
WHAT IS A VENTILATOR?
A ventilator’s purpose is to pump air into the lungs with a specified pressure and volume level to induce machine-dependent breathing. Ventilators can be categorized by the device’s level of sophistication and location of use. The five included categories are acute care ventilators, sub-acute care ventilators, home care ventilators, neonatal ventilators and non-invasive ventilators.
- Acute care ventilators: The acute ventilator refers to devices involved in hospital inpatient care, when a breathing system management would be beneficial for the patient.
- Sub-acute care ventilators: Sub-acute care ventilators have the same general uses as acute ventilators, but for less extreme circumstances, and they are built as such.
- Home care ventilators: The home care ventilator market refers to those devices used for supportive therapy in patients’ homes.
- Neonatal ventilators: Neonatal ventilators tailor to smaller lung capacities and are used to improve compromised cardiovascular function in infants.
- Non-invasive ventilators: Non-invasive ventilators (middle care ventilators) offer basic respiratory support capabilities.
WHY IS THE GLOBAL VENTILATOR MARKET DECLINING DESPITE ITS POPULARITY?
Unfortunately, all good things must come to an end, and for ventilators, their market growth was somewhat short-lived. Despite being the single biggest short-term driver in the market, the result of the surge in sales due to COVID-19 will largely be reversed in the years following the resolution of the pandemic. Hospitals across Europe massively over purchased ventilators in 2020, dramatically reducing the demand for new devices in the years following. This will effectively neutralize any short-term gains and result in markets returning to a stable, mature state.
WHAT OTHER FACTORS ARE CONTRIBUTING TO THE DECLINE?
Other factors causing market stagnation surround the market’s maturity and the usage of machines beyond their life cycles. Many respiratory ventilator markets are developed and saturated, as the vast majority of facilities in more sophisticated markets that require respiratory ventilation functions have been outfitted with the devices. This acts as one of the main limiters of the market as there are limited opportunities for expansion and growth. Additionally, due to the high cost of hospital ventilators, many hospitals have been using their machines beyond their intended life cycle. Ultimately, instead of expanding capacity when necessary to a number of newer machines, hospitals will keep an old, outdated machine to conduct a smaller number of daily procedures. This, in turn, limits market growth.
WHAT FACTORS ARE WORKING TO DRIVE THE GLOBAL VENTILATOR MARKET?
Several factors are involved in establishing growth within the global ventilator market. Some of which include, growth in home care, advances in technology, and the introduction of non-invasive ventilation. Although a decline is occurring within the ventilator market, advancements in technology are reducing the size of ventilators and improving their functionality. Older generation ventilators were mechanical, while newer ventilators are processor controlled and can offer a higher level of operational flexibility. All of these technological developments increase the competitive advantages of purchasing new equipment and will serve to increase the number of replacements, which the market is in dire need of.
WANT TO RECEIVE FURTHER INSIGHTS?
iData’s analysis further breaks down the global ventilator market by segment and by region including average selling prices (ASPs), unit sales, market value by region, installed base by region, and COVID-19 best, base, and worst-case scenarios. In addition, the report includes an extensive competitive examination of the top companies and their product lines available in the market. Do you want to find out what these companies are doing to reverse the current downward trend and which ventilator segments generated the most market value?
