The global anesthesia and respiratory devices market is forecast to exceed USD 13 billion by 2016 with a compound annual growth rate (CAGR) of 9 percent from 2009-2016. The market is expected to be primarily driven by the huge patient population suffering from obstructive sleep apnea (OSA), chronic obstructive pulmonary disease (COPD), and the availability of medical devices to treat OSA and COPD. Globally, about 300 million people are suffering from OSA, the prevalence of which increases with age, reaching 30-80 percent in the elderly population. Currently, about 400 to 600 million people are suffering from COPD on a global basis with about 12 million patients in the U.S.

Respiratory devices accounted for 55 percent of the overall anesthesia and respiratory devices market in 2009, making it the largest category. This category is forecast to reach 59 percent of the overall market by 2016. The global market for respiratory devices was valued at USD 4.2 billion in 2009, and is forecast to grow at a CAGR of 10 percent to reach USD 8.2 billion in 2016. The market is expected to be driven by reimbursement approval by the U.S. Centers for Medicare and Medicaid services for CPAP devices based on home diagnosis of OSA, the patient population suffering from OSA and COPD, and the increasing demand for low-priced portable oxygen concentrators.

The demand for respiratory devices is expected to increase following growth in the home healthcare market. Rising healthcare costs are leading to more people getting treated at home and this provides an impetus for growth of respiratory devices such as positive airway pressure (PAP) devices, nebulizers, humidifiers, and oxygen concentrators. Also, in the U.S., the Centers for Medicare and Medicaid Services (CMS) expansion of reimbursement coverage for home sleep tests for the diagnosis of OSA is expected to boost the healthcare market. CMS's 2009 physician fee schedule extends reimbursement coverage to diagnosis made with home sleep test systems, provided the provider of the home sleep test device does not also have a financial interest in selling devices used for OSA treatment. This reimbursement is expected to significantly increase the number of people diagnosed with OSA and undergoing OSA treatment.

The U.S. is the biggest market for anesthesia and respiratory devices, contributing 49 percent toward the global market in 2009, and this contribution is expected to increase to 54 percent by 2016. The U.S. market for anesthesia and respiratory devices was valued at USD 3.7 billion in 2009, and is forecast to grow at a CAGR of 10 percent to reach USD 7.4 billion in 2016. The U.S. market is expected to be driven by those patients suffering from OSA (15 million) and COPD (12 million), the availability of reimbursement for anesthesia and respiratory devices and the growth in the home healthcare equipment market.

In 2009, Chinese Government announced that it was spending USD 125 billion in the healthcare sector over the next three years, as part of its economic stimulus package. The spending includes expanding healthcare insurance coverage to 90 percent of the population. The money will also be spent on constructing 30,000 hospitals, clinics, and care centers and upgrading existing healthcare facilities. Annual healthcare subsidies under the latest healthcare reforms will increase to USD 18 per person from the current USD 12 per person. In China, there is a growing demand for quality medical devices among the general population bolstered by higher income levels. This is providing an impetus for significant investment in the healthcare sector by the government.

In 2009, Draegerwerk AG & Co. KGaA, Covidien, GE Healthcare, and Philips Respironics were the leading players in the anesthesia and respiratory devices market with a combined market share of 42 percent. Draegerwerk AG & Co. KGaA and GE Healthcare dominate the anesthesia machines market. Philips Respironics is one of the leading players in the respiratory devices market and Covidien is the leader in respiratory measurement devices market. The reasons why these companies dominate can be attributed to their long-term presence in the healthcare market, the relationships they have developed with hospitals and physicians over a period of time, and the brand name they enjoy with patients.

Courtesy: GBI Research