The global oxygen conservation devices/systems market size was valued at USD 776.80 million in 2016 and is anticipated to grow at a CAGR of 12.2 percent over the forecast period. Rising incidence of respiratory diseases is expected to boost the demand for Oxygen Conservation Devices (OCD).
According to National Institutes of Health (NIH), nearly 12 million adults have been diagnosed with COPD in the U.S. and 120,000 people die each year. In addition, 12 million adults suffer from undiagnosed COPD. According to the data published by the Global Asthma Network, asthma is likely to affect nearly 334 million people worldwide. The patient population has increased owing to an increase in the prevalence of chronic respiratory diseases, which has boosted the demand for these products. This consequent increase in demand is expected to drive the market in future.
In addition, the demand for technologically advanced products is growing because they deliver better patient outcomes. Some of the potential benefits of these products include greater comfort, ease of use, controlled flow rate as per requirements of patients, enhanced patient response, lower wastage of gas, and increased portability. These benefits are expected to propel the demand for these products and, in turn, boost market potential.
Moreover, the presence of supportive regulatory framework is fueling the overall growth of this industry. Increasing reimbursement policies are expected to boost the adoption of these products in home care settings. For instance, Medicare Part B covers all the rental O2 therapy equipment and accessories by including them under the category of durable medical equipment. The abovementioned factors are responsible for boosting overall growth of oxygen conserving devices market.
Reservoir oxygen delivery devices, also known as reservoir cannulas, held the largest share of the market in 2016 owing to early introduction and high adoption. As these devices improve the efficacy of O2 delivery, they are recommended for patients with higher flow requirements. Some of the advantages of these products are that they are reliable, easy to use, inexpensive, and disposable. Owing to the aforementioned factors, the demand for these products is anticipated to remain steady during the future period.
Electromechanical pulsing devices are expected to grow at a lucrative rate of 12.5 percent throughout the study period. These products were developed with a view to improve patient mobility and conserve O2 flow. They deliver a pulse of O2 to the patient only during the initial part of inhalation. Their ability to provide a rapid early-inspiratory O2 pulse helps in extending the tank life. The overall demand for these products is expected to grow lucratively owing to their high efficiency as compared to other devices.
The transtracheal catheters segment is anticipated to grow at a steady rate during the forecast period. The efficiency of these products is similar to that of reservoir oxygen delivery systems. The advantage of transtracheal catheters is that they are effective in patients with obstructive & restrictive lung diseases and their flow can be adjusted depending upon the rate & depth of respiration as per different diseases. The disadvantage associated with these devices is that they get plugged with mucus and thick secretions owing to which they need to be cleaned daily. As a result, the growth of this segment is expected to remain steady during the future period.
The others segment includes O2 conserving regulators, portable O2 cylinders, O2 concentrators, and liquid O2 systems, which involve the use of either reservoir cannulas or pulsing devices. The integration of the abovementioned devices is carried out to develop better and more efficient conservation systems. The overall growth of oxygen conserving systems market is expected to be consistent over the forecast period.
The hospitals & clinics segment is expected to grow at a steady rate. Technologically advanced medical equipment is being used extensively in hospitals to improve point-of-care. The hospital’s segment is anticipated to grow at a steady rate owing to the use of oxygen therapy equipment and other associated supplies in hospitals. Quick reimbursements are available for O2 therapy involving the use of oxygen conserving devices under the Medicare program.
Moreover, hospital settings have a wide range of facilities and can provide a controlled environment. Thus, patients with severe disorders prefer to be treated in hospitals, and this is boosting the growth of this segment. Furthermore, the presence of government agencies, such as NHS National Patient Safety Agency to improve O2 management in hospital settings, is also anticipated to fuel market growth during the forecast period.
Home healthcare held a substantial share of the end-use segment in terms of revenue in 2016. Rising incorporation of long-term oxygen therapy equipment in home settings is anticipated to boost the demand for these products during the forecast period.
Large-scale availability of a wide range of home oxygen therapy equipment is also expected to propel the market during the forecast period. Furthermore, increasing number of initiatives for enhancing home oxygen therapy services by organizations such as American Association for Homecare is anticipated to create potential growth opportunities.
North America oxygen conserving systems market is dominated the overall market and was valued at USD 314.3 million in 2016 owing to high R&D investments & trials pertaining to O2 therapy and developed reimbursement framework, among others. Also, increasing prevalence of chronic respiratory diseases is expected to increase the usage of these products, thereby boosting growth in this region.
Moreover, an increasing number of FDA approvals for the incorporation of oxygen therapy for applications such as cancer, autism, and diabetes is anticipated to drive the market across this region during the forecast period. Furthermore, the presence of organizations such as Canadian Society of Respiratory Therapy and Canadian Thoracic Society, which promote awareness pertaining to oxygen therapy, is also contributing to market growth.
Asia Pacific is anticipated to grow at an exponential rate owing to increasing geriatric population that requires home-based oxygen therapy. The urgent need to develop new systems and replace as well as upgrade medical infrastructure is among factors anticipated to present lucrative growth opportunities.
Rising disposable income, presence of high untapped opportunities, and continuous R&D activities by key players to develop innovative products are among factors expected to propel the market to great extent. Furthermore, the establishment of supportive nongovernment organizations, such as the Asia Pacific Association of Allergy, Asthma and Clinical Immunology, is anticipated to increase awareness about the treatment of respiratory disorders among patients, thereby increasing the adoption of oxygen therapy.
Oxygen Conservation Devices Market Share Insights
The oxygen conserving devices market is growing due to increasing demand for ease of use, greater comfort, controlled flow rate as required by the patient, enhanced patient response, reduced wastage of gas, and increased portability. Owing to these factors, several local and international medical device manufacturers are investing in this market.
Some of the key players are Responsive Respiratory, Inc.; Invacare Corporation; Medline Industries, Inc.; Air Liquide; HERSILL, S.L.; Precision Medical, Inc.; Medical Depot, Inc. (Drive DeVilbiss Healthcare); GCE Group; and Essex Industries, Inc. The development of better products, increased patient outcomes, and less wastage of gas has resulted in a competitive environment in the industry.
Major players are involved in various collaborations & partnerships, new product developments, mergers & acquisitions, and expansion strategies to improve their market penetration. For instance, in September 2017, Air Liquide acquired Sogo Sangyo Kabushiki Kaisha, thereby increasing its home healthcare and medical gases business in Japan.
Increase in competition in the market can be attributed to the growing number of players, frequent product approvals, and efficient distribution agreements. As a result, competitive rivalry in the market is anticipated to be high. - Grand View Research