The bone cement market is expected to grow at a CAGR of 5% during the forecast period. Increasing rate of adoption of minimally invasive techniques, drivers.2, and drivers.3 are some of the significant factors fueling bone cement market growth.
Increasing rate of adoption of minimally invasive techniques
Technavio categorizes the global bone cement market as a part of the global healthcare supplies market that primarily covers manufacturers of medical products, including all categories of supplies such as consumables and disposables like safety needles, syringes, and catheters. The parent, global healthcare supplies market, covers products and companies engaged in R&D of a variety of product categories spanned across medical consumables that are used for the diagnosis and treatment of various diseases.
The global healthcare market was valued at $1.72 trillion in 2019 and is expected to grow at a moderate pace. The global healthcare supplies market, which is a part of the global healthcare market, was valued at $27.31 bn in the same year.
Technavio calculates the global healthcare supplies market size based on the combined revenue generated by manufacturers of medical supplies such as syringes, drapes, gloves, and gowns.
Growth in the global healthcare supplies market will be driven by the following factors:
Increasing life expectancy: The proportion of the global population over the age of 60 years is forecast to increase significantly. By 2050, nearly one-fourth of the US population is projected to be over 60 years, while Europe is likely to reach a similar proportion by 2030. Moreover, some large economies in Asia, such as Japan, already has one-third of its population above 60 years of age. China is expected to have almost half of its population above 60 years by around 2050. This geriatric population requires more medical attention leading to higher spending on healthcare.
Expanding access to improved healthcare in emerging economies: With good economic growth across emerging markets in Asia and Africa, since 2000, leading to higher income levels, access to healthcare has also improved. The governments are also spending more on healthcare with a focus on improving the quality of care. Most of this growth has come from emerging countries and low-income regions.
Sedentary lifestyle gaining pace: Sedentary lifestyle is the consequence of urbanization, an unhealthy diet, and decreasing levels of physical activity. It is a significant global health concern, with about one-fourth of the population in large economies like the US and China leading a physically inactive lifestyle. A sedentary lifestyle is anticipated to influence and change the nature of healthcare spending. Technavio expects healthcare spending to increase and move away from communicable diseases to chronic care.
Increase in cases of chronic conditions: The number of chronic disease cases has been rising globally. The majority of the US population currently lives with at least one chronic condition. In 2018, China reached a “tipping point” by recording the highest number of early deaths due to chronic diseases. Going forward, the incidence of chronic cases is expected to be much higher than that of infectious diseases.
Increasing number of surgical procedures: The increase in the number of surgical procedures due to the growing prevalence of various disorders requiring surgical interventions, and the rise in chronic conditions, apart from increasing cases of accidents and injuries, is leading to a rise in demand for medical supplies.
Growing focus on infection control: Globally, hospital-acquired infections are major sources of concern among people receiving healthcare. For middle- and low-income economies, the rate of infection is much higher compared with patients in developed economies who receive healthcare of better quality. One way of countering this is to improve the conditions of healthcare facilities and provide healthcare supplies of better quality.
Demand for better healthcare will push sales: Rapid urbanization in developing economies in Asia has created a demand for a high standard of healthcare and is expected to drive volume sales of healthcare supplies.
Growth generated by emerging segments in healthcare: Growing adoption of healthcare supplies for home-based healthcare, home medical devices, and other advanced application areas such as robotic surgery will aid in the growth of this market.
Increased healthcare spend is driving healthcare budgets. It is pushing governments to create cost pressure in the sector, which is a challenge. Some of the key cost and other pressures faced by the healthcare sector are listed below.
Pricing pressure by governments: To reduce per capita healthcare spending, governments are increasingly trying to reduce costs related to the various stakeholders that include insurers, healthcare institutions, and manufacturers.
Reimbursement reforms: To make healthcare more affordable for patients, the pressure on reimbursement rates has increased throughout developed economies such as the US and in countries in the EU, disrupting established players and creating more pressure on pricing.
Group purchase by healthcare institutions: In the US and large parts of Europe, healthcare group purchasing organizations (GPOs) negotiate for a better rate for a high volume of purchases. Prospitalia in Germany, and MediGroup and Amerinet in the US, are such GPOs, helping member organizations to reduce costs and improve quality of care. However, this puts pressure on the vendors to reduce costs to remain competitive in the market and win large contracts.
Competition from regional and local manufacturers: Many healthcare providers, including large hospitals and clinics, rely on local sourcing of healthcare supplies to keep a check on costs. Simultaneously, the quality of local production has improved in the past decade, leading to an increase in the adoption of healthcare supplies from local vendors.
Cost pressure will affect prices, primarily in healthcare systems in North America and Europe: A sizeable proportion of healthcare costs comes from healthcare supplies and is closely related to the quality of healthcare provided. Consistent pressure on reducing costs in healthcare will impact manufacturers of medical supplies as they might have to reduce selling prices.
Increasing adoption of non-woven medical fabrics in hospitals: Hospitals and healthcare providers are replacing reusable (textile-based) medical fabrics with disposable (non-woven) medical fabrics. This shift is driven by the pressure to cut costs. At the same time, disposable fabrics provide protection from hospital-acquired infections. Moreover, rapid developments in the production technology for non-woven disposable medical fabrics are enabling mass production.
Increasing availability of counterfeit healthcare equipment and supplies: Availability of counterfeit medical devices and healthcare supplies is a major problem across the world. They can harm patients and the reputation of original manufacturers. Many countries, especially the emerging economies, do not have the requisite regulations to control counterfeiting. Some developed countries have regulations for combating the development and spread of counterfeit products. The World Health Organization (WHO) is taking initiatives to create awareness. However, the availability of counterfeit medical devices and supplies continues to be a major challenge for the healthcare equipment and supplies industry.
The global healthcare supplies industry comprises the following:
Consumables and disposables: Includes tubes, drapes, replaceable blades, nutritional and pharmaceutical solutions, prefilled syringes, anesthesia, empty syringes and needles, catheters, bandages, dressings, and similar products
Healthcare supplies by therapy areas covered in the global healthcare supplies market include supplies used in the delivery of medication, renal care, general surgery, urology surgery, gynecology surgery, regenerative medicine, and robotic surgery.
