AcuteMarket Reports.Com announces that it has published a new study Oxygen Concentrator Market, Shares, Strategies and Forecasts, Worldwide, 2013-2019. The 2013 study has 572 pages, 241 tables and figures. Worldwide markets are poised to achieve continuing growth as the aging population worldwide needs homecare oxygen treatment. Older people develop COPD and other respiratory conditions where oxygen is able to improve the quality of the life in a dramatic manner. Portable devices have become affordable and support a mobile lifestyle even while on oxygen.
There has been a quantum improvement in the oxygen concentrator technology. Less weight, more power are the characteristics of the new portable units that begin to rival the larger home units. The huge jump in technology is illustrated by the effectiveness of the Inogen G3 and the about to be released VBox Trooper. Innovation started with Inogen One G3 and AirSep’s LifeStyle are the less-than-10-pound battery-operated concentrator. AirSep has re-engineered the unit down to a 2 pound device.
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Newer portable oxygen concentrators can be used as multipurpose devices.
Portable oxygen concentrator technology has been instantiated many times over, but in a most compelling manner by Inogen as the Inogen oxygen concentrator which represents a technological breakthrough. The Inogen One G3 is a complete departure from current mainstream technologies. It represents a shift away from standard large, bulky, stationary concentrator systems and inefficient, heavy, and impractical portable devices.
This transformation presents a new opportunity for people who make PSA oxygen equipment. Economies of scale and a new distribution modality leveraging homecare services are set to change the medical oxygen industry. Home delivery markets tend to be evaporating.
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Delivering oxygen cylinders costs money and consumes resources. In current competitive bidding markets, reimbursement for oxygen is down by up to a third. Providers in these markets are compensating for this reduction by moving their oxygen business to a nondelivery
Philips medical chronic disease equipment is able to address market trends. Invacare has been a continuing market leader in articulating the benefits of homecare.
The complexion of the home oxygen market is changing. Home oxygen markets have been predicated on a dealer infrastructure. These dealers get reimbursed for regular deliveries of liquid oxygen used for supplemental oxygen so the patient can go out, buy groceries, go to the movies, and visit family for a short time. The advent of reliable, inexpensive portable home oxygen concentrators has changed the market dynamic significantly.
No longer do patients need regular deliveries of liquid oxygen for supplemental purposes so the patient can go out. Now, the patient just uses one device at home and while out of the home. The economics of the medical oxygen market have been changing for a long time. CMS Medicare and the private insurers that follow their lead have been resisting paying for supplemental liquid oxygen because the price of truck rolls is too high. With lowered reimbursement, the dealer distribution network that has been in place for many years is no longer tenable.
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This is disruptive to many oxygen concentrator market participants. Whereas Invacare has achieved significant market penetration by building a strong dealer network, this no longer makes sense as a way to provide respiratory care in the home. The reimbursement is too low to support what worked in the past. This is a dramatic shift in the home medical oxygen market. The move from a primary delivery with a cost structure that accounts for truck rolls to a portable device market is set to bring dramatic changes to the industry. For vendors that have relied on the distribution network and financing the distribution network, their hold on the market has shifted.
Oxygen concentrator markets at $581 million in 2012 are anticipated to reach $2 billion dollars by 2019. Growth is a result of new competitors in the market, demand for the smaller lighter technology by patients, and the market need by for greater mobility support for older people.
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