By Christine Kern, contributing writer
Frost & Sullivan report finds understanding future needs will guarantee competitive advantage.
The healthcare industry’s shift towards value-based care is reflected by neonatal care equipment manufacturers’ interest in providing high-end, technology-integrated, home-based infant care and neonatal solutions according to research by Frost and Sullivan’s Transformational Health team.
Maintaining the patient-physician, point-of-care continuum means having access to solutions that provide information technology integration, wireless monitoring, and telehealth/telemedicine capabilities, providing solid opportunities for neonatal care equipment manufacturers.
The neonatal devices industry is undergoing changes in regards to regulatory protocols, preventive care, reimbursement models, healthcare digitization, patient interests, physician preferences, and executive priorities. Stakeholders need to be aware of the challenges posed by the industry and anticipate new ways to innovate business models and capitalize on the market transformation.
The report notes with the neonatal care equipment arena expected to be worth $317.3 million in 2020, competition will intensify. As such, new companies offering attractive pricing and technology features will compel market majors to innovate and expand to meet user needs.
According to the Global Analysis of the Neonatal (Preterm) Care Equipment Market, part of Frost & Sullivan’s Advanced Medical Technologies Growth Partnership Service program, more than 75 percent of healthcare organizations will be ready to invest in connected healthcare systems by 2020. This investment will serve to fuel collaborations with neonatal care equipment companies, and with 30 percent of patients expected to opt for alternate care by 2020, manufacturers offering quality home treatment options to infants in need of acute care, disease management, and help with other preterm birth issues will reap rich benefits.
“It is getting tougher for western multinational corporations to maintain market shares in the preterm neonatal arena, especially in developing regions, as there are more than 50 domestic vendors competing primarily on price,” says Brahadeesh Chandrasekaran, Frost & Sullivan advanced medical technologies industry analyst. “Market leaders are creating a portfolio that is cost-effective, maintains the hospital-to-home POC continuum, provides special attention to infants with preterm birth issues, and incorporates value-added services.”
The report stresses the need for collaboration with local players to increase market share as intensive consumer engagement initiatives and a focus on user wellness and preventive medicine will work to build awareness and brand recall.
“In addition,” says Chandrasekaran, “the market needs affordable technologies that can conveniently reach and cater to customers in the low-income settings and assist in disease monitoring through diagnostic applications or mobile phones. Toward this end, several low-tier and mid-tier companies are developing low-cost equipment for rapid diagnosis in acute care settings.”