Published on : Feb 10, 2016
Every hospital needs to run a spotless supply chain. It is the core of any healthcare organization and presents the key challenge of cost reduction while ensuring a swift arrival of any good rom the point of purchase to point of use.
A Burgeoning Market of Hospital Supplies
The global hospital supplies market is expected to progress at a highly positive CAGR of 11.0% between 2012 and 2018. Through this period, the market is expected to accrue revenues worth US$37.0 bn by the end of 2018. The global hospital supplies market is further illuminated by the fact that hospitals are preferring disposable supplies to non-disposable ones, as the former acquired a massive 44% of the market in 2011 itself. This segment is expected to be valued at US$18.2 by the end of this year, while projecting a 13.0$ CAGR till 2018. Even within this segment, the sub-segment of needles and syringes stood at the top with a quarter piece of the pie from the global market.
Faster Growth Rate as the World Develops
This is only the current market estimation. The global hospital supplies market is expected to benefit even more from the rapidly growing human population, which is also showing an increase in prevalence of communal diseases and chronic diseases. The market is further boosted by the high percentage of the geriatric population which is slowly increase on a yearly basis. At the same time, developing economies are showing a higher level of awareness regarding hospital acquired infections, which can be mitigated through the proper use of sterile devices.
Hospital Supply Companies Boosting Visibility
The key reason for the growth of regional players has to be their level of visibility. They are competing against international names which go a long way in establishing their credibility. Therefore, smaller regional names need to either promote themselves in a more aggressive manner, or earn more credibility through successful collaboration efforts. Collaboration may also help in managing costs more effectively and help sell disposable supplies that have a relatively shorter shelf life.
All this points to the fact that the global hospital supplies market is experiencing a rather large influx of new entrants who can be successful at a regional level despite the heavy competition posed by other regional brands as well as international brands.