"The private sector will drive the demand for higher quality and new technology, but with the government focussing on public private partnerships, growth and quality improvement can be nurtured across both the sectors," says Frost & Sullivan Research Analyst Sandhya Miseer. "The Government's policies pertaining to the new national health insurance (NHI) scheme will also significantly influence growth opportunities."
New analysis from Frost & Sullivan (medicaldevices.frost.com), South African Intravenous Therapy Devices Market, finds that the market earned revenues of $151.0 million in 2009 and estimates this to reach $205.3 million in 2016.
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"The well-established market is constantly driven by technology and safety," Miseer notes. "Cost-effective and quality products that are user-friendly are expected to have higher adoption rates."
Despite infusion pump recalls and urgent device alerts from Smiths Medical, Medtronic and Baxter in 2009, the intravenous therapy devices market will continue to grow because of the important nature of the devices. The markets covered in this study are infusions systems, administration sets, catheters and needle-free systems.
Other factors such as the promotion of public-private partnerships to develop and upgrade hospitals, the shortage and lack of skills of healthcare personnel and the HIV/AIDS crisis will also affect growth of the market. These factors should be taken into consideration when adopting any market penetration strategy.
"Increasing incidences of infection and diseases such as human HIV/AIDS, tuberculosis, cardiovascular disease and kidney disease, together with a rise in elective surgeries and medical tourism in South Africa will drive growth," says Miseer. "South Africa has 0.7 per cent of the world's population, 17 per cent of the global HIV epidemic, 28 per cent of global HIV and TB co-infected people."
An increasing number of South Africans are opting to undergo surgery for non-compulsory medical procedures for cosmetic and reconstructive purposes. South Africa has also become a worldwide destination for elective surgery packages. In 2008, 410,000 people came to South Africa as medical tourists. Tourists are capitalising on the inexpensive procedures and recuperating post surgery while on holiday.
The recent tender process implemented in the public sector is however stifling its growth. There is also a lack of skills and a slow uptake of innovative technology in the medical profession. South Africa has a 40 per cent vacancy rate in the public sector due to poor salaries and working conditions. Many healthcare workers are under-educated and unwilling to learn about new technology or devices.
"The current government purchase model involves a tendering process that allocates the price of any device a 90 per cent weighting in decision-making criteria," explains Miseer. "It also uses a lock-in period for one brand that creates market dominance. Therefore, new market entrants will find it difficult to penetrate the market, compelling them to be highly price-competitive."
As companies and products are vulnerable when government tender applications are made, new market entrants should use this opportunity to enter the market. Working closely with the government to penetrate the secondary and primary levels of healthcare services and provide training and education will play a pivotal role in overcoming the skills deficit.
"There is a growing demand from patients and healthcare workers for less-invasive devices, and new technology that provides such devices will create product demand," concludes Miseer. "The demand for patient-controlled devices will also increase, as hospitalisation and clinic fees increase and patients become educated in handling their own treatment."
South African Intravenous Therapy Devices Market is part of the Medical Devices Growth Partnership Services programme, which also includes research in the following markets: The Medical Imaging Market in Tanzania, South African Advanced Wound Care Market, Strategic Analysis of the Healthcare Industry in Zambia, and Overview of the Healthcare Industry in Namibia. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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South African Intravenous Therapy Devices Market / M523