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SAN JOSE, Calif. -- The urgent need to minimize medication errors is being articulated through the development of smarter and safer infusion pumps. In a market currently characterized by minor variations between competing offerings, product differentiation will be a key element of success.
New analysis from Frost & Sullivan, "Strategic Analysis of the U.S. Infusion Pump Markets," reveals that this market accrued revenues worth $1.67 billion in 2002 and is poised to expand to $2.50 billion by 2008.
With a large installed base, principal revenues derive from replacement of old pumps rather than new unit sales. Accordingly, technological advances that add value and provide enhanced safety will catalyze demand from end users while opening up new growth opportunities.
"Technological advancement ensures product differentiation, reducing the replacement time," explains Frost & Sullivan industry analyst Dhiraj Ajmani. "Quicker replacement of outdated pumps will spur growth in the infusion pumps market."
Augmenting the revenues from replacements will be the disposables market. In fact, sales of disposable administration sets and feeding sets will generate a continuous revenue stream for volumetric and enteral pump manufacturers respectively.
Implantable and insulin pumps are forecast to be high-volume, high-growth segments. Technological improvements that emphasize their benefits over competing therapies will boost uptake among patients and the medical community. Moreover, the substantial target bases of both segments are likely to represent a lucrative source of long-term revenues.
Medication safety software is another emergent growth area. Customized software being incorporated into new pumps is expected to reduce medication errors and bolster the safety profile of infusion pumps. However, the large installed base lacks this software component, thereby throwing up tantalizing possibilities.
"A company linking the medication safety software with existing pumps is expected to be highly successful," notes Ajmani.
Against the backdrop of continuing efforts to ensure medication safety, an aging baby boomer generation and the growing popularity of ambulatory and alternate care are also expected to drive the expansion of the infusion pumps market.