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sales will rise 56% by '96 - respiratory therapy equipment market financial analysis The non-hospital market for respiratory therapy equipment is expanding. The total market for alternate site and home health care respiratory therapy products increased to $1.1 billion in 1991 from $924.5 million in 1989. Annual sales are predicted to exceed $1.72 billion by 1996.
The home health care segment of the market accounted for $450 million in sales in 1991. Revenues are expected to reach $692.4 million by 1996.
Reimbursement is one of the most important factors in the non-hospital respiratory care market. For example, non-hospital sales of pulse oximeters hit $43.9 million in 1991 after they were approved for Medicare reimbursement as part of home oxygen therapy treatments in 1989. The non-hospital oximeter market should reach $77.5 million by 1996.
But cuts in oxygen concentrator reimbursement will hold average prices at $857 for the next five years. However, the number of units shipped continues to rise. That market is predicted to grow to more than $100 million in 1996 from $65.3 million in 1991.
Proven effectiveness in non-hospital settings also is influential in sales and is the driving force in the disposable medication nebulizer and ventilator markets. The former is predicted to expand to $71.4 million in 1996 from $31.2 million in 1991.
In the ventilator market, transport unit sales are predicted to grow to $10 million in 1996 from $6.2 million in 1991. The market for home-care and alternate-site ventilators should reach $53.5 million in 1996, up from $27.8 million in 1991.
Other factors contributing to expansion in the non-hospital market include an aging population and increased incidents of respiratory disease. The elderly account for a disproportionate amount of chronic and costly respiratory diseases. It is predicted that the number of persons at least 75-years-old will increase to 17 million by the year 2000 from 13.5 million in 1990.
Technological advances, such as miniaturization, are also spawning a trend toward treatment of patients outside the hospital.
Respiratory therapy equipment hospital market segments in the Air Cleaners, Accessories, Air Purification System, Battle Creek, HEPAtech 57 Air Purification System, Hepatech Air Purifier 200 Cfm, Check O(2) Plus Concentrator Analyzer U.S. Market segment 1991 1996 MM$ MM$ Ventilators 34.0 63.5 CPAP and oxygen equipment 252.6 366.3 Disposable breathing circuits, masks, accessories and resuscitators 96.9 132.7 Nebulizers 59.6 115.0 Spirometry and flow meters 29.4 66.1 Apnea monitoring and testing and pulmonary function testing 42.4 62.9 Pulse oximeters 43.9 77.5 Home care respiratory services 450.0 692.4 Other equipment and accessories 95.7 147.2 Total market 1,104.5 1,723.6 Source: Frost & Sullivan, Inc., New York, 1992
Home-care spending in the United States rose to $7.5 billion 1991 from $5.5 billion in 1989, and should reach $19 billion by 2000. Check O(2) Plus Concentrator Analyzer