Inadequate regulations for the commercialization of products and forward integration by raw material suppliers have kept the threat of new entrants high in the global compression therapy market, finds Transparency Market Research in a new study. This, combined with presence of a large number of local and global players, renders the market highly fragmented. Suppliers in the market also don’t enjoy a high bargaining power due to their presence in large numbers.
Transparency Market Research forecasts the global compression therapy market to reach US$4.25 bn by 2024 from a valuation of US$2,693.4 mn in 2015. If these figures hold true, the market will exhibit a CAGR of 5.3% between 2016 and 2024.
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The majority of the companies operating in the market are vying to emerge dominant through mergers and acquisitions. They are also witnessing attractive prospects in the emerging economies of Asia Pacific. TMR recommends that adopting collaborative strategies could help these companies capitalize on untapped opportunities in the region. With the population in China, Japan, Singapore, and South Korea increasing at a rapid pace, combined with their increasing interest in sports and fitness, manufacturers of compression therapy products stand chance to gain a competitive edge in the market.
Capitalizing on Untapped Opportunities in Emerging Economies Could Boost Market
TMR finds that the ripest opportunities lie in emerging economies of Latin America and Asia Pacific. “Immense potential for healthcare products in countries such as South Korea, Brazil, China, Mexico, and India will prove to be lucrative for companies vying for sizeable share in the global compression therapy market,” said a TMR analyst. “Due to the increasing investment on the healthcare infrastructure, increasing disposable income, and the rising incidence of chronic ailments, these regions exhibit robust prospects for the compression therapy market,” he added.
In the last few years, compression therapy has emerged as one of the most preferred procedures for treating sports related injuries. The growth witnesses by the market therefore corresponds directly to the growing popularity for sports worldwide. Besides this, the rising prevalence of obesity and increase in the number of orthopedic surgeries also create ample opportunities favoring the market’s expansion.
Absence of Reimbursement Regulations to Negatively Impact Sales of Compression Therapy Products
Despite growth prospects for the market being robust, the absence of proper reimbursement will have an adverse impact on its growth trajectory. Nevertheless, the increasing investment on the development of the healthcare infrastructure in developing companies will provide considerable opportunities for vendors to boost their sales.
Presently, the market has been witnessing lucrative prospects for the sale of static compression products. Supported by clinical evidence, static garments are preferred more by doctors as patient care products. Additionally, patients favor static compression hosiery more since it is made with comfortable material and due to its aesthetic appeal.
North America Exhibits Highest Prospects for Compression Therapy
Regionally, the prospects for compression therapy seem most lucrative in North America. The region held over 47.2% of the global compression therapy market in 2015, followed by Europe, which accounted for a share of 32.2% in the market. Obesity being a widespread problem in developed economies such as the U.S., North America will be witnessing a high incidence of vascular diseases. This is evidently proving favorable for enterprises offering compression therapy products to maximize their sales.
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