World Market for Power Supplies in Medical Applications to Grow by $100 Million in Five Years
Unlike the market for power supplies in many sectors that declined or remained flat in 2012, the power supplies business used in medical applications remained resilient and grew 4.0 percent last year. Moreover, strong annual growth is forecast for the space in the next five years, driving an additional $100 million during this period.
Growth is largely being driven by Asia and America, helping compensate for the struggles at present of the Europe-Middle East-Africa (EMEA) region, according to a new report entitled “The World Market for Power Supplies in Medical Applications” from IMS Research, now part of IHS Inc. (NYSE: IHS). EMEA, however, will recover in two years and then also figure in helping fuel growth.
“The BRIC countries of Brazil, Russia, India and China are going to be the key drivers in this market over the next few years,” said Jonathon Eykyn, power supply and storage component analyst for IHS. “Meanwhile, recovery in the EMEA region is forecast to drive increased spending on medical equipment from 2015, raising demand for accompanying power supplies.”
The largest segment of the power supplies market in medical applications was clinical care, with 60 percent of revenue last year. Applications here include anesthesia devices, patient monitor devices and neonatal incubators. The medical imaging market made up one-third, and the consumer market took up the remainder of market revenue. Growth this year is projected at by 3.7 percent, with the Americas representing the largest market.
The power supplies market for medical applications often appears complicated for power supply manufacturers. The space is driven directly by the medical equipment markets that are affected, in turn, by factors like demographic and social trends, reimbursement legislation and trends in healthcare provision. Furthermore, a broad range of products exists with widely differing power demands, ranging from low-power consumer devices to state-of-the-art MRI scanners. On top of it all, several additional standards are in place for power supplies in medical applications.
“With growth set to remain stable for the foreseeable future, the medical market provides a strong opportunity to manufacturers looking to diversify their product ranges, especially as demand for power supplies in other sectors remains low,” added Eykyn.