Global Markets and Technologies for Home Medical Equipment--Focus on Japan

Report Highlights

• The global market for home medical equipment (HME) reached $17.9 billion in 2010 and $18.9 billion in 2011. It is expected to grow to $26.2 billion by 2016, a compound annual growth rate (CAGR) of 6.7%.
• Japan’s share of the global HME market was 7.2% in 2010 and was valued at $1.3 billion, which increased to $1.4 billion in 2011. This market will further grow to $1.9 billion by the end of 2016, a CAGR of 7.4%.
• The Japanese market for home assistive devices such as wheelchairs, scooters and home care beds was worth nearly $300 million in 2010.  BCC projects that this market grew to almost $306 million in 2011 and will grow to $337 billion by 2016, a CAGR of 2% between 2011 and 2016.

INTRODUCTION

Home medical equipment (HME) is a multibillion-dollar market.  Since BCC published its last study of the HME market in 2010, the market has continued to evolve, as populations age and a growing number of older people wish and are financially able to live in their own homes for as long as possible, rather than going into a nursing home or other institutional care facility.  These demographic and attitudinal shifts in the health care market are reinforced by technological developments such as wireless home monitoring, and economic trends, like the rising cost of institutional care and a growing receptivity to home health care among physicians and private and public insurers.

Since the prior research study was published, the market has continued to evolve, due to factors such as an aging population, increased incidence of heart disease and other conditions requiring close patient monitoring and technological developments such as wireless remote monitoring.

STUDY BACKGROUND

These trends are global, at least in advanced industrial nations.  However, most published analyses of the HME market focus on the U.S. market.  Since U.S. medical equipment manufacturers are among the largest suppliers to the global health care market, they need to gain the most detailed understanding of international markets for their products, including HME.

STUDY GOALS AND OBJECTIVES

This report is intended to provide an objective, quantitative analysis that addresses the global market for HME in the context of technological change and an evolving market.  More specific objectives are to

• Identify and segment the main types of HME that have been commercialized to date.
• Analyze the historical and current value of shipments of each of these product segments in specified applications, end-user and geographical markets.
• Identify and evaluate the impact of demographic, technological, regulatory and other factors that will drive future demand in each of these segments.
• Forecast the value of future shipments in each segment.
• Identify promising new technologies and products still in the development and testing stage that are likely to be commercialized successfully in the next five years.
• Identify leading HME vendors.

INTENDED AUDIENCE

The report has been written for the entire medical and health care interest community, but it is tailored especially for readers with an interest in the marketing and management dimensions of home medical equipment, such as

• Manufacturers and distributors of HME.
• Regulators and health insurers.
•  Investors.
• The financial and analyst community.

SCOPE AND FORMAT

This report is an analytical business tool whose primary purpose is to describe and analyze the dynamics of the global market for home medical equipment.  Home medical equipment is defined as durable equipment (i.e., equipment with an expected service life of at least three years) that:

• Can withstand repeated use.
• Is primarily and customarily used to serve a medical purpose.
• Generally is not useful to a person in the absence of an illness or injury.
• Is not implanted inside the patient’s body.
• Is appropriate for use in the home.
• Does not require a trained medical professional to operate.
• Usually requires a doctor’s prescription to buy (e.g., excludes most canes, walkers and other elderly and disabled assistive devices).
• Generally does not include drugs and other consumables.

While the report’s coverage is global, it focuses on selected international markets for HME, including:

• North America (United States, Canada).
• European Union (France, Germany, Italy, U.K., other European countries).
• Japan.
• BRIC nations (Brazil, Russia, India, China).
• Rest of the world.

The report includes sections on the following topics:

• Major product types and applications, both commercial and developmental.
• Market size and segmentation, including historical data on sales by product type and geographical market.
• Market drivers and constraints.
• Detailed market projections through 2016.
• Patent analysis.
• Competitor profiles.

METHODOLOGY AND INFORMATION SOURCES

This study was prepared using both primary and secondary research methodologies.  The findings and conclusions of this report are based on information gathered from manufacturers and distributors of HME, multilateral and government agencies, caregivers, insurance companies and other knowledgeable sources.   Interview data were combined with information gathered through an extensive review of secondary sources such as trade publications, trade associations, company literature and online databases to produce the baseline market estimates contained in this report. 

The base year for analysis and projection is 2010.  With 2010 as a baseline, market projections were developed for 2011 to 2016.  These projections are based on a combination of a consensus among primary research sources and our understanding of key market drivers and their impact from a historical and analytical perspective.  The analytical methodologies used to generate the market estimates are described in detail in the section titled Detailed Market Projections.

All dollar projections presented in this report are in 2010 constant dollars.

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DISCLAIMER

The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature.  This information does not constitute managerial, legal or accounting advice, nor should it serve as a corporate policy guide, laboratory manual or an endorsement of any product, as much of the information is of a speculative in nature.  The author assumes no responsibility for any loss or damage that might result from reliance on the reported information or from its use.

Analyst Credentials

Andrew McWilliams spent more than 25 years as a consultant with Ernst & Young, McKinsey & Company and A.T. Kearny focused on manufacturing before segueing into research analysis. He has been covering myriad technology categories for BCC Research for more than 15 years. McWilliams has a BA from Princeton University and an MA from Harvard University. He has worked in more than 40 countries and he resides in the greater Boston area.