Despite certain segments being on a course of high growth, the patient monitoring systems markets overall are at a mature phase. This is characterised by high replacement rates and low volume sales. As a result of high replacement rates, greater importance is being placed on the maintenance and service of these systems.
"The high acuity cluster, which includes the emergency department (ED), the operating room (OR), and intensive care units (ICU), is the fastest-growing area of the hospital," remarks Kumar. "Already representing up to 60 per cent of a hospital's costs and revenues, high acuity care will continue to grow as baby boomers age."
Hospitals across Europe and the United States are adding more monitored critical care beds and are performing an increasing number of surgical procedures. In addition, ED visits have risen by more than 20 per cent in the last decade.
Manufacturers that produce low-cost monitors can build strategic alliances with other medical equipment manufacturers, including manufacturers of anaesthesia machines, ventilators and diagnostic equipment. This is because hospitals prefer to buy products as a package that typically come with lower price tags.
"Market leaders have a range of products, which they can bundle and sell at a cheaper price," explains Kumar. "Hence, a partnership will help overcome this hurdle, and will benefit both manufacturers in the alliance."
Besides, low-cost manufacturers can actively co-operate with technology vendors such as IT companies, both to acquire software solutions for patient monitors as well as to offer bundled products. Thus, an alliance with hardware and IT vendors will be economically fruitful and also enable low-cost manufacturers to effectively compete with their larger competitors.
Eastern European Hig
|SOURCE Frost & Sullivan|
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