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Growing awareness of regional
anaesthesia's myriad benefits has boosted the number of such procedures being
performed across Europe. This trend is, in turn, set to trigger increased uptake
of regional anaesthesia kits. Continued pricing pressures are likely, however,
to compel market participants to implement value-added strategies of which kit
customisation is expected to be a critical component.
The spiralling costs of
healthcare provision are intensifying pricing pressures in the medical devices
industry with 'commodity' products, such as needles and catheters being the most
acutely affected. While technological development in such product 'commodity'
categories is unlikely to help arrest price erosion, alternative strategies to
maintain price levels are being developed.
"Despite mounting pricing
pressure, companies can maintain pricing levels by implementing value-added
strategies such as customisation, just-in-time delivery, product bundling and
one-stop-shopping options," says Frost & Sullivan Research Manager Sumit Sharma.
"In particular, the increasing demand for kit/tray customisation provides
participants an opportunity for
extending value proposition to customers and raising average prices."
Amongst the perceived
additional benefits that kit customisation is expected to offer include reduced
nursing hours spent in procedure set-up, decreased cross-contamination, more
efficient tracking of individual procedure costs and the capacity to meet
diverse clinician preferences or requirements. However, the ability to provide a
lead offer of high quality regional anaesthesia products alongside additional
customisation services poses a major challenge.
Most of this challenge relates
to determining a cost-effective process for customising products - whether
through outsourcing the manufacture of certain parts of the kit or contracting
out the entire 'custom' division of the business. Before deciding on the optimal
market approach, however, companies need to assess prospective partnership
opportunities as well as their own internal capabilities.
Maximising internal resource
capabilities while achieving manufacturing efficiencies is also set to help
companies meet the demand for low product prices by healthcare purchasing
groups, since they can offer customers economically priced products while
maintaining profitability levels.
In 2003, the total European
regional anaesthesia kits market was valued at 66.66 million euro, of which the
epidural kits segment generated the most revenues followed by peripheral kits,
combined spinal and epidural (CSE) kits and spinal kits segments.
Particularly high growth -
estimated at 14.2 per cent from 2003 to 2010 - is forecast for the peripheral
kits market segment. This segment is expected to experience rapid uptake
throughout Europe due to the clinical advantages of this technique and related
procedural growth.
"Companies need to
strategically position themselves to leverage the high growth opportunity
projected for the peripheral kits segment and anticipate the opportunities that
kit customisation offers," advises Mr. Sharma. Overall, market leader B. Braun
currently leads the peripheral market and is active in the epidural, CSE and
spinal kits segments, as well. Other notable
market participants include Portex, Becton, Dickinson and Company (BD), Pajunk,
Vygon, Arrow International, Rusch and Temena.
Many of these companies have
developed product specialisations in various niches. However, this scenario is
evolving: while product quality is still identified as the central factor for
hospitals when sourcing a supplier, kit configuration is starting to assume an
increasingly crucial role. This is likely to effect a shift in market share
distribution.
"Product advancement is likely
to be crucial with companies needing to rapidly respond to the growing customer
requirement for customisation and expanded sets," notes Mr. Sharma.
"Additionally, developments in individual component technology such as needle
tips, hubs and ports, require investment to ensure the quality requirements of
end users continue to be met."
If you are interested in an
analysis overview providing an introduction into the Strategic Analysis of the
European Regional Anaesthesia Kits Market - please contact Katja Feick
-Corporate Communications at katja.feick@frost.com
with the following information: Full name, Company Name, Title, Contact Tel
Number, Email.
You may also visit ,
http://www.frost.com
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