Shifting Demographics and Lifestyles, Product Innovation Offer Growth Opportunities in Compression Therapy Market

Business Wire, April 20, 2005

PALO ALTO, Calif. -- Even as changing lifestyles and an aging baby boomer population fuel the growth of the U.S. compression therapy market, non-compliance of patients and a lack of product training for clinicians poses a significant challenge for the market participants.

New analysis from Frost & Sullivan (http://www.medicaldevices.frost.com), U.S. Compression Therapy Market, reveals revenue in this market totaled $459.5 million in 2004 and projects to reach $759.0 million in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the U.S. Compression Therapy Market -- then send an e-mail to Danielle White -- Corporate Communications at dwhite@frost.com with the following information: your full name, company name, title, telephone number, fax number and e-mail. Upon receipt of the above information, an overview will be sent to you via e-mail.

Increasing incidence of obesity is contributing to the number of people afflicted with diabetes, which directly influences the occurrence number of diabetic ulcers. Compression therapy is the mainstay of treatment for venous stasis and venous ulcer ailments.

"However, an estimated 50 percent of the patient population treats itself and compliance rates are low among the remaining patients," explains Frost & Sullivan Research Analyst Sheila Ewing. "Thus, misdiagnosis, self-treatment, and noncompliance with treatment protocols are severely curbing revenues."

Manufacturers that are conscious of end-users needs are likely to gain a larger market share. Ongoing clinician training for diagnosis, product-usage, and application techniques is likely to aid in providing an appropriate treatment plan to patients.

Furthermore, healthcare systems are transitioning of medical care from hospitals to outpatient facilities and homecare -- as a result of technology improvements and a greater concern for cost savings, dynamic compression devices rentals are expected to receive a boost due to the increasing usage in the home care segment.

In an effort to further contain cost, manufacturing of compression therapy products is shifting from the United States to Mexico and Asia Pacific.

"The substantial growth of contract manufacturing has led to an increase in competition among low-end product segments," notes Ewing. "As a result, value-added features and multi-functional products are becoming key competitive factors."

Additionally, manufacturers of dynamic compression therapy devices face marginal coverage by Medicare. Venous ulcers primarily afflict the elderly population segment -- the fastest growing population segment in the United States. Many of the elderly are unable to afford expenses of private insurance or out-of-pocket cash payments. This factor continues to curb the expansion of the U.S. compression therapy market.

One way to improve reimbursement approval is to may be to incorporate additional features in existing products. In addition, starting with local carrier coverage instead of national coverage is likely to be a faster approach.

Overall, innovation in the U.S. compression therapy market and focus on designing products that are easy to use for both patients and clinicians expects to increase market penetration for the participants and boost growth rates. Furthermore, manufacturers specializing in niche segments are likely to remain strong in this market.

U.S. Compression Therapy Market, part of the Medical Devices subscription, evaluates the market by segmenting it into static and dynamic compression therapy. Key market drivers, restraints and trends, industry challenges, and strategic recommendations are presented to aid participants in capturing market share. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

U.S. Compression Therapy Markets

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Keywords in this release: compression therapy, static, dynamic, U.S., venous statis, venous ulcer, paste bandage, multi-layered bandage, compression hosiery, venous disorder, homecare, Revascularization, patient awareness, education, contract manufacturing, pneumatic pumps, elastic bandage, inelastic, Medicare, ECS, research, information, market, trends, technology, service, forecast, market share