Anesthesia Equipment Market

Updated on : June 14, 2023

The global anesthesia equipment market in terms of revenue was estimated to be worth $8.0 billion in 2023 and is poised to reach $11.0 billion by 2028, growing at a CAGR of 6.7% from 2023 to 2028. The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market. Growth in this market can primarily be attributed to the growing geriatric population on a global level. Common age-related diseases and conditions include arthritis, osteoporosis, lumbar spinal stenosis (LSS), gastroesophageal reflux disease (GERD), and benign prostatic hypertrophy. LSS is extremely common among people aged 50 years and above, with most patients in this age group undergoing surgical procedures for its treatment. As per the American Academy of Orthopaedic Surgeons (AAOS), around 2.4 million Americans are expected to be affected by this condition by 2021. The growth in the geriatric population is thus expected to result in a surge in the total number of surgeries performed in the US.

Attractive Opportunities in Anesthesia equipment Market

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Anesthesia Equipment Market Dynamics

Driver: Rising prevalence of chronic disorders

According to the WHO, cancer is the leading cause of death globally and was responsible for an estimated 10 million deaths in 2020. According to Cancer Research UK, an estimated 27.5 million new cancer cases will be reported in 2040, an increase of 61.7% compared to 2018. About 62.6% of the new cancer cases occurred in Africa, Asia, Latin America, and the Caribbean region in 2020; 72.6% of global cancer deaths also occurred in these regions in 2020. The increasing burden of cancer can be attributed to several factors, including population growth and aging, as well as the changing prevalence of certain causes of cancer linked to social and economic development. Based on these statistics, basic and translational cancer research continues to be of utmost importance. This is resulting in the growing demand for surgeries, hence boosting the anesthesia equipment industry growth.

Restraint: Unfavorable reimbursement scenario

Currently, the healthcare system in developing countries faces many challenges due to rising healthcare costs, increasing incidence of chronic diseases, and the growing geriatric population (coupled with the growth in age-related disorders). To counter these challenges, governments in a number of countries are focusing on redesigning their healthcare reimbursement systems. In Asian countries, there is very limited or no reimbursement available (except in Japan). Thus, limited or decreasing reimbursement rates in developed countries and undefined reimbursement policies in emerging countries restrict the adoption of surgical procedures globally. This, in turn, is restraining the demand for anesthesia equipment during the forecast period.

Opportunity: High growth in developing countries

An increase in the per capita income and healthcare expenses in developing markets across APAC and Latin America has increased patient access to advanced healthcare treatments. However, some countries in the APAC and Latin America rely heavily on purchasing medical devices from developed countries such as the US, Japan, Germany, and Ireland. This represents significant growth opportunities for players operating in the anesthesia equipment industry. According to the World Bank, Asia accounts for more than half of the world’s population. Authorities in various developing countries in this region are planning to establish new healthcare delivery models, such as day-care centers, single-specialty hospitals, and long-term care centers, to serve larger population sections. Many private enterprises are also taking steps to cater to the needs of modern and well-equipped state-run healthcare facilities in these countries. In China, the private hospital sector is expected to maintain double-digit growth over the coming years owing to regulatory changes, market demand, and capital investments. In the private hospitals segment, specialty hospitals are witnessing high growth.

Challenge: Hospital budget cuts

In recent years, changes in regulatory policies in major markets such as the US have significantly affected hospital budgets. The Affordable Care Act (ACA), implemented in the US in 2010, has brought tighter federal regulations, forcing many hospitals to curtail their capital expenditure budgets. Similar budgetary cuts are observed in hospitals in the European region, mainly due to the economic slowdown in the past few years. Owing to such budget cuts, many hospitals cannot afford costly medical devices and prefer lower-priced alternatives (such as refurbished devices) or undertake upgradation of existing medical equipment and devices. The rising cost of prescription drugs and a sharp decline in the proposed budget allocations for Health and Human Services in the US have significantly reduced hospital budgets. A study by the American Hospital Association estimates that federal payment cuts to hospitals would amount to USD 218 billion by 2028, forcing hospitals to allocate smaller budgets annually.

Anesthesia Equipment Market Ecosystem

Leading players in this market include well-established and financially stable manufacturers of anesthesia equipment. These companies have been operating in the market for several years and possess a diversified product portfolio, advanced technologies, and strong global presence. Prominent companies in this market include GE Healthcare (US), Dragerwerk Ag & Co. KGAA (Germany), Koninklijke Philips N.V. (Netherlands), Ambu AS (Denmark), Medline Industries Inc. (US).

The anesthesia circuits (breathing circuits) segment of the anesthesia equipment industry is expected to register the highest CAGR during the forecast period.

Based on type, the anesthesia equipment market is segmented into anesthesia circuits (breathing circuits), anesthesia masks, endotracheal tubes (ETTS), laryngeal mask airways (LMAS), and other accessories. In 2022, the anesthesia circuits (breathing circuits) segment is expected to register the highest CAGR during the forecast period. These anesthesia disposables are essential for maintaining a sterile environment, preventing infections, and ensuring patient safety during anesthesia procedures. They are designed to be convenient, cost-effective, and eliminate the need for cleaning and sterilization which is fueling the demand for these products.

The cardiology segment of anesthesia equipment industry is estimated to grow at a higher CAGR during the forecast period.

Based on application, the anesthesia equipment market is segmented into orthopedics, neurology, respiratory care, urology, cardiology, and others. The cardiology segment is estimated to grow at a higher CAGR during the forecast period. Growth in this segment can be attributed to the the aging population, which is more susceptible to cardiac conditions, and the rising adoption of minimally invasive cardiac interventions.

The ambulatory surgical centers segment of the anesthesia equipment industry is expected to grow at the highest CAGR during the forecast period.

Based on the end user, the anesthesia equipment market is segmented into hospitals, clinics, ambulatory surgical centers, and other end users. In 2022, ambulatory surgical centers segment is expected to grow at the highest CAGR during the forecast period. the growing number of outpatient visits. Ambulatory surgical centers are well-equipped with critical care devices and instruments. Moreover, these outpatient settings are associated with reduced patient stays.

APAC is estimated to be the fastest-growing region for anesthesia equipment industry.

The global anesthesia equipment market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2022, APAC is estimated to be the fastest-growing regional market for anesthesia equipment. The high growth in this market can majorly be attributed to the rising number of hospitals and increasing healthcare expenditure, the significant growth in patient volume, and the demand for healthcare services.

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The anesthesia equipment market is dominated by a few globally established players such as GE Healthcare (US), Dragerwerk Ag & Co. KGAA (Germany), Koninklijke Philips N.V. (Netherlands), Ambu AS (Denmark), Medline Industries Inc. (US). Major players adopt growth strategies to expand their geographical presence and garner higher shares in the global market, such as product launches and approvals, expansions, collaborations, and acquisitions.

Scope of the Anesthesia Equipment Industry

The study categorizes the anesthesia equipment market to forecast revenue and analyze trends in each of the following submarkets:

By Type

• Anesthesia Devices
  • Anesthesia Workstation
  • Anesthesia Delivery Machines
  • Anesthesia Ventilators
  • Anesthesia Monitors
  • Other Devices
• Anesthesia Disposables
  • Anesthesia Circuits (Breathing Circuits)
  • Anesthesia Masks
  • Endotracheal Tubes (ETTS)
  • Laryngeal Mask Airways (LMAS)
  • Other Accessories

By Application

• Orthopedics
• Neurology
• Respiratory Care
• Urology
• Cardiology
• Others

By End User

• Hospitals
• Clinics
• Ambulatory Surgical Centers
• Other End Users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa

Recent Developments of Anesthesia Equipment Industry

• In April 2022, GE Healthcare received the FDA pre-market approval (PMA) for its End-tidal (Et) Control software for general anesthesia delivery on its Aisys CS2Anesthesia Delivery System.
• In May 2022, Fisher & Paykel Healthcare expands offering in anesthesia with the release of the Optiflow Switch and Optiflow Trace.

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