Wednesday, November 9, 2011

To Sell Medical Beds, Companies Looking Outside the US and Europe

Makers of the beds used in hospitals, nursing homes and patient’s homes  will see their best growth from markets outside the U.S. and Europe, according to our latest healthcare market research report.  According to the healthcare market research publisher, the 5.3 billion dollar market for medical beds will see small growth over the next five years in traditionally strong markets but growth can be expected in other countries.

Medical bed makers selling to Europe have already encountered lower sales due to cost restraints, and changes to the US healthcare system are likely to have the same effect.   At the same time, we expect sales of medical beds in the rest of world to more than double by 2016.
This change the way bed manufacturers look at their marketing efforts and where they locate distributors and sales personnel..  As a percentage of the total market, the report forecasts that sales outside the US and Europe will grow from 13% to 18% of all medical bed sales between now and 2016.  Africa, Middle East are among the regions that Kalorama sees companies targeting more in the future.   India presently has one-fifth of the world average number of hospital beds per million population and an estimated 455,000 additional beds will be required by 2012, an investment estimated at over $30 billion.  

We note that the "rest of world" market, as it is labeled in our report, still represents the smaller portion of total sales and bed manufacturers will still need to adapt to competitive bidding and other changes in the major markets.   Innovation and production cost reduction are likely at most firms.