Fetal and Neonatal Care Equipment Market

Market Overview

The global fetal and neonatal care equipment market size was valued at USD 8.9 billion in 2022. It is estimated to reach USD 13.2 billion by 2031, growing at a CAGR of  4.5% during the forecast period (2023–2031). The research for product innovation promotes market growth.

Fetal and neonatal care is the medical equipment used for newborn infants and fetuses in hospitals and homes. These technologies and equipment are intended to monitor the health and well-being of infants and fetuses, detect any medical problems, and give medical care as needed. Infant warmers, neonatal incubators, phototherapy equipment, respiratory aid equipment, fetal dopplers, and other devices and equipment are available in the worldwide fetal and neonatal care equipment market. These gadgets and technology are critical in providing high-quality care for infants and fetuses, particularly preterm or with medical issues.

The primary use of fetal and neonatal care equipment is to provide critical care for newborn babies and fetuses suffering from life-threatening diseases or illnesses such as respiratory distress syndrome (RDS), sepsis, jaundice, and hypothermia. Furthermore, these equipment and gadgets are utilized in neonates and fetuses to control body temperature, prevent infection, aid with breathing, deliver feeding, and encourage healing.

Market Dynamics

Market Drivers

Research for Product Innovation

Universities and manufacturers are researching to help resolve healthcare professionals' product-specific challenges. More non-invasive methods are being adopted, including ultrasound equipment for automatic fetal measurements assisting in labor and tela-ultrasound designed to provide at-home ultrasound scans. Considering the high number of neonatal deaths in developing economies, startups focus on product innovations. Coeo Labs, an Indian MedTech business, created a newborn CPAP machine to minimize mortality due to respiratory distress syndrome (RDS) during neonatal transport. Furthermore, as part of the government's Make in India program, financial help is being offered to local efforts in India.

Market Restraint

Product Recalls

Product recalls are implemented to remove a product from the market after a fault is recognized by a regulatory agency or the manufacturer. In May 2018, the FDA recalled Jaundice Meter JM-105 and Jaundice Meter JM-103, manufactured by Dräger, due to misinterpreted display messages for bilirubin levels. FDA Class I recalls were initiated in June 2019 for Panda i-Res Infant Warmers and Giraffe Infant Warmers, and in December 2019, Giraffe OmniBeds and Incubators were manufactured by GE Healthcare. Companies incur additional costs due to such product recalls, which can impede the overall market.

Market Opportunities

High Neonatal Deaths

However, neonatal deaths are a concern in developing and developed economies, with a significant difference in death rates. According to OECD 2018, nations in Southeast and South Asia reported neonatal deaths compared to East Asian countries. A mortality rate of more than 20 per 1,000 live births was recorded in India and Myanmar, with more than 40 per 1,000 in Pakistan. On the other hand, nations such as Australia, Japan, Singapore, Korea, and China have reported around two deaths per 1,000 live births. Although the death rate in the U.S. is lower than that in developing economies, it is still significant, with 47% of 2.4 million newborn deaths (112,800) in 2019 recorded during the neonatal period. To counter this problem, there is a growing demand for neonatal monitoring and care equipment.

Regional Analysis

Based on region, the global fetal and neonatal care equipment market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global fetal and neonatal care equipment market shareholder and will likely grow at a CAGR of 4.7% over the forecast period. The Major factors contributing to the growth of this region are increasing awareness about fetal and neonatal care and a large number of (NICU) Neonatal Intensive Care Unit admissions. According to the CDC, the preterm birth rate in the U.S. soared for the 5th year in a row, at 10.23% in 2019, up from 10.02% in 2018. As a direct consequence, the demand for fetal and neonatal care equipment also grows, which will likely propel the market in the region.

Furthermore, the launch and approval of advanced, next-generation devices in the U.S. and Canada and technological advancements in infant and maternal care products will likely boost the market. Some key companies in North America are GE Healthcare, Medtronic PLC, Koninklijke Philips NV, and Masimo. An increase in awareness for prenatal and neonatal care and an increase in pregnancy and congenital complications due to inactive/sedentary lifestyles will likely boost the U.S. market.

Europe is expected to grow at a CAGR of 4.5% over the projected period. It is attributable to an increase in the number of hospitals, an increase in the number of newborn babies with acquired infections, a large patient population with low birth weight, and an increase in the number of preterm newborns. According to Sandrine Ceurstemont's 2018 article, over 500,000 kids are delivered preterm in Europe each year, and the number is climbing. As these babies require extra care, a rise in preterm births is expected to propel the market. Other factors contributing to market growth include the local presence of major players, technological developments, and growing business activities such as new product launches, mergers, and acquisitions.

For instance, in January 2015, Drägerwerk AG and Co. KGaA extended its partnership with Intensive Care On-line Network (ICON), which provides Dräger customers assistance in the use of equipment. The consultation assisted customers in enhancing the patient experience and reducing errors.

Asia-Pacific's overall market is majorly driven by China and Japan. Japan dominated the fetal and neonatal care equipment market regarding revenue share. This can be due to the local presence of major players and an increasing number of low-weight and preterm births. Singapore, Thailand, South Korea, and India are some of the emerging countries in the regional market. Technological advancements in care equipment and an increasing number of preterm births are anticipated to promote fetal and neonatal care equipment growth.

Furthermore, according to a study by UNICEF, the overall mortality rate of neonates in South Asia was 28.2 % in 2016; almost 2,800 newborns died each day in South Asia. In 2016, Pakistan had the highest neonatal death rate (46 for every 1,000 live births), followed by Afghanistan (40 for every 1,000 live births). Thus, the presence of a large patient pool, the availability of high-quality services, and the increasing presence of global players will likely drive the rest of the Asia Pacific market during the forecast period.

Latin America's fetal and neonatal care equipment market is primarily driven by Brazil, Mexico, Argentina, and Colombia. Growing investments by key market players in the region, proximity to North America, and free-trade agreements with major countries such as the U.S., Canada, Japan, and several European countries are anticipated to boost the Latin American market during the forecast period. Supportive government regulations to commercialize medical devices in the country are expected to propel market growth.

In the Middle East and Africa, the region's fetal and neonatal care equipment market is expected to proliferate over the forecast period due to the increasing prevalence of preterm births in Africa. Preterm newborns are found to be prone to infections and diseases. According to WHO, preterm births account for 11.1% of the world's live births, of which 60% are in South Asia and sub-Saharan Africa. In the poorest countries, 12% of babies are born prematurely, compared to 9% in top-tier countries. As a result, these newborns need to be monitored using equipment such as fetal incubators and fetal monitors. These factors have increased the demand for tracking devices and equipment in the region, driving technological advancements. However, a lack of skilled healthcare staff may hamper the market.

Segmental Analysis

The global fetal and neonatal care equipment market is bifurcated into whitening products, applications, composition, and distribution channels.

Based on type, the global fetal and neonatal care equipment market is bifurcated into fetal and neonatal care equipment.

The fetal care equipment segment dominates the global market and will likely exhibit a CAGR of 4% over the forecast period. Ultrasound equipment, MRI systems, monitors, and pulse oximeters are subdivided further within this section. Because of the rising use of ultrasound devices to see the fetus during pregnancy, the ultrasound devices sector retained the highest market share in 2021. Furthermore, increased awareness, technical developments, and convenience have prompted the introduction of portable and do-it-yourself ultrasound systems for home use. Due to its value in detecting the baby's heart rate during pregnancy and childbirth, the fetal monitor section emerged as the second-largest segment in 2021.

Koninklijke Philips N.V. announced the release of the Avalon CL Fetal and Mother Pod and Patch in June 2020. This remote monitoring device allows continuous monitoring of the mother's and fetal heart rates. This may be utilized in high-risk pregnancies to reduce physical interaction between the patient and the doctor, which was crucial during the pandemic.

Based on end-users, the global fetal and neonatal care equipment market is bifurcated into hospitals, diagnostic centers, clinics, and others.

The hospital's segment owns the global market and will likely exhibit a CAGR of 4.9% over the forecast period. Hospitals providing fetal and neonatal care are expanding their treatment capabilities by launching new centers and partnering with other organizations. In December 2019, Woman's Hospital, U.S., partnered up with North American Fetal Therapy Network (NAFTNet), a medical centers association in Canada and the U.S. with expertise in fetal intervention to enable Woman's to collaborate with other fetal therapy providers in North America and provide evidence-based treatments to patients.

Piedmont Medical Center, U.S., and Meenakshi Mission Hospital and Research Centre (MMHRC), India, launched new facilities for providing fetal care treatment. Expansion of service portfolio by including innovative treatments can assist hospitals in strengthening their market position. In November 2020, intrauterine fetal surgery on a 25-week-old fetus was performed at Latifa Hospital for Women and Children, UAE, to treat a spinal cord defect. The surgery was claimed to be the first in the region.

Recent Developments

• April 2023- GE Healthcare introduced the GE Voluson E10 fetal monitoring system. A 4K ultra-high-definition monitor and an AI engine are among the new technologies included in the system.
• February 2023- Cerus Corporation, a developer of blood safety devices, was bought by Becton, Dickinson, and Company (BD). The purchase will broaden BD's fetal and neonatal care product line.