Geriatric products respond to demographics
The geriatric product market, as defined by Market Intelligence Research Corp., Mountain View, Calif., is projected to reach $4.5 billion by 1996.
This market was worth $1.7 billion in 1986 and increased to about $2.1 billion in 1989, according to “Geriatric Therapeutic Products,” recently published by MIRC.
Product improvements that will force price increases and greater demand by the elderly population are expected to trigger market growth, the report said. MIRC defines this market as including disposable, durable and therapeutic medical products.
Revenue growth was moderate at the beginning of MIRC’s ten-year forecast period. In the latter half of this period, some of the costly but efficient products in development are expected to be in use, according to MIRC. Improved materials for orthopedic implantables are expected to be favored for the elderly. More seniors are expected to seek devices that can save lives, such as an implantable defibrillator.
The home/hospital market accounted for 33.9% of geriatric product revenues in 1986 and retained this share in 1989. By 1996, market share is expected to decline slightly to 33.1%, as a result of the cost constraints on dealers. The prices must remain stable or decline to ensure reimbursement, according to MIRC.
The cost clinical products like pacemakers, orthopedic implantables and other devices used in a clinical ro hospital setting has always been higher than that of disposables or durable equipment that can be rerented or resold. Because of the cost and precision involved with clinical products, this market will continue to bring in the most revenues in the geriatric market, MIRC predicts.
The clinical market accounted for 66.1% of the geriatric market in both 1986 and 1989. New products and increased demand are expected to encourage the expansion of clinical geriatric products. By 1996, clinical products are expected to account for about 66.9% in revenues of the total market.
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