Medical Gas Equipment Market Size, Share & Trends Analysis Report By Type (Medical Gas, Pure Medical Gases, Medical Gas Mixtures, Medical Gas Equipment, Equipment Accessories, Cryogenic Products, Gas Delivery Systems), By Applications (Therapeutic, Diagnostics, Other Therapeutic Applications (Tissue and Platelet Preservation)), By End-User (Hospitals, Home Healthcare, Pharmaceutical and Biopharmaceutical Companies, Diagnostic and Research Laboratories, Academic Institutes and Research Institutes) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global medical gas equipment market size was valued at USD 19.78 billion in 2022. It is projected to reach USD 33.4421 billion by 2031, growing at a CAGR of 6.78% during the forecast period (2023-2031). Factors such as growing adoption of point-of-care diagnostics and increasing prevalence of chronic respiratory diseases, significantly drives the medical gas equipment market demand by 2031.

Healthcare institutions employ medical gases and equipment for a variety of medical procedures. Equipment used to administer and monitor medicinal gases, including oxygen, nitrous oxide, and others, is referred to as medical gas equipment. The American Lung Association predicted that roughly 12.5 million people would be diagnosed with COPD in 2020, resulting in an even greater need for medical gas equipment. Additionally, the business is seeing the development of cutting-edge technologies like vacuum systems, wearable oxygen concentrators, and masks. The market for medical gases is expected to expand greatly in the next years because they are necessary for many long-term treatments for chronic conditions.

Several major players' improvements also aid the market's expansion. As an illustration, Atlas Copco, a well-known producer of industrial tools and equipment, purchased MedCore Services Inc. in January 2023, focusing on the upkeep and servicing of medical gas systems. Atlas Copco's portfolio will be improved due to this tactical decision, and its market penetration for medical gas equipment will increase. The purchase highlights the business's dedication to offering dependable, high-quality equipment that can adapt to the changing demands of patients and healthcare professionals. 

Highlights

• Vacuum systems dominate the type segment.
• Therapeutic dominates the application segment.
• Hospital dominates the end-user segment.
• North America is the most significant shareholder in the global market.

Market Dynamics

Global medical gas equipment market drivers

Growing adoption of point-of-care diagnostics

The development of point-of-care diagnostics (POCD) and the rising prevalence of respiratory disorders are predicted to substantially impact the medical gas and equipment market. The need for medical gases and equipment and the home healthcare sector may necessitate POCD. POCD is a common technique for diagnosing illnesses at the patient's bedside more quickly than other methods. As the danger of disease transmission rises when a patient enters a healthcare institution, the increased prevalence of respiratory illnesses is anticipated to be advantageous for POCD.

In addition, demand for medical gases and home healthcare supplies is anticipated to increase as more conditions that cause immobility are discovered. In the market for medical gases and equipment, it might be necessary for new goods to be produced that can be tailored to consumer needs for main rivals to flourish. Customers are becoming aware of the benefits of integrating a pressure regulator and a cylindrical valve into a single device that performs all necessary control chores.

Increasing prevalence of chronic respiratory diseases

The need for medical gases and equipment is driven by the rising prevalence of Chronic Respiratory Diseases (CRDS) like pulmonary hypertension, chronic obstructive pulmonary disease, occupational lung diseases, and asthma. Chronic obstructive pulmonary disease (COPD), which causes more than 3.0 million fatalities annually and accounts for around 6% of global deaths, has the potential to overtake tobacco usage as the third biggest cause of death by 2030. According to the same report, almost 235.0 million individuals globally have asthma.

Medical gases, including oxygen, lung gas mixes, and heliox, are used to treat and diagnose these respiratory disorders, driving the market CAGR for medical gases and equipment. The Covid-19 epidemic also sparked technological advancements that will aid the many afflicted in treating their respiratory illnesses. The rising number of FDA approvals for medical equipment also supports the medical gas and equipment market growth.

Global medical gas equipment market restraint

High cost of ownership of medical gas equipment

Medical gases, and subsequently medical gas equipment, are crucial to the efficient operation of the contemporary healthcare industry. Medical gas consumption is increasing, which raises reliance on this industry. Additionally, there is no market substitute for medical gases and equipment, which drives up the total cost of ownership by increasing capital and operating costs associated with setting up and maintaining such a system. Medical gas equipment prices include annual cleaning and maintenance expenses, periodic service fees, and unforeseen repair expenses. The expenses related to educating specialists to use medical gas equipment effectively will raise the overall cost of ownership of this equipment, which may restrain the market's expansion.

Global medical gas equipment market opportunities

Technological advancements

The functionality possibilities for medical gas handling equipment used in hospital and home care are expanding thanks to technological improvements. Compared to older equipment, the most technologically advanced technology offers a complementary monitoring and therapeutic delivery system, along with training materials and communication between patients and healthcare professionals. Additionally, numerous related medical gas equipment is now being gradually enhanced to provide a higher standard of care. The creation of lightweight, transportable medical gas-handling equipment has proven extremely beneficial for the expanding home healthcare industry. Many businesses manufacturing medical gas equipment are concentrating on creating more compact and portable gas delivery systems that patients may use. The availability of smaller and less expensive equipment on the market has caused a constant change in the character of the medical gas equipment industry, particularly for home care.

Numerous manufacturers are concentrating on releasing cutting-edge items in light of the potential opportunities in this market niche. In order to produce portable compressors and generators for the construction industry and medical gas products for hospitals, Atlas Copco constructed a production facility in the US in 2017. The GCE Portable Oxygen Concentrators, Oxygen Conserving Devices, Oxygen Regulators, and High Purity Gas Control devices were among the respiratory care items that GCE Healthcare introduced in the US and Canada in 2016. The company was able to increase its product options for the US and Canadian home care therapy sectors as a result of this breakthrough. Integrating various types of gas-handling equipment and developing lighter, more portable equipment for the homecare market is projected to open up considerable opportunities for market players in a competitive environment.

Regional Analysis

North America Dominates the Global Market

Based on region, the global medical gas equipment market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant global medical gas equipment market shareholder and is expected to exhibit a CAGR of 6.21% over the forecast period. This is due to implementing laws like the U.S. Food and Drug Administration Safety and Innovation Act, its highly developed healthcare system, and the prevalence of minimally invasive procedures. The increased use of medical gases and equipment in treating various respiratory diseases, including COPD and asthma, is largely responsible for this steady growth rate. According to the Center for Disease Control and Prevention (CDC), approximately 34 million Americans had COPD in 2021. In addition, the demand for medical gases and equipment in the United States is anticipated to be driven by the rising prevalence of COPD, asthma, and other medical conditions, including cardiovascular and lifestyle-related diseases.

The largest share of the American market has been attributed to factors such as the presence of cutting-edge healthcare facilities, particularly intensive care units, a well-established medical gas market, a high prevalence of patients with respiratory conditions, and a growing geriatric population. The U.S. medical gas industry is presently undergoing a shift in standards, analysis, and delivery methods due to the current increase in home oxygen therapy use and the subsequent modernization of medical gas standards and supply methods.

Europe is projected to witness significant growth in the forecast period. The development and use of medical gas equipment in the region is primarily encouraged by several organizations, including the European Industrial Gases Association and the Medical Gas Association, which are anticipated to contribute to the region's continued growth. The highly advanced healthcare systems in Western European nations are also expected to support the growth of the European market. Additionally, rising demand for home healthcare settings in nations like the U.K., France, Italy, and others is fueling the market's rise in Europe. According to World Health Organisation (WHO) data, the region's life expectancy has risen substantially in recent years. The growing older population in Europe who need care is expected to substantially impact the home care settings industry in the near future, which will favor the market.

Segmental Analysis

The global medical gas equipment market is segmented into type, application, and end-user.

Based on the type, the global medical gas equipment market is bifurcated into medical gas and medical gas equipment.

The medical gas equipment segment held the largest market share in 2022, with a share of 29.06%. High usage rates and increased costs are variables that have contributed to the market's expansion. Vacuum systems and pumps are now necessary for the safe and efficient delivery of medical gases due to the complexity and diversity of medical operations. Similarly, cutting-edge machinery can deliver precise and dependable suction force, which is crucial during surgical procedures since the patient's safety depends on the suction of fluids and gases.

Masks have also been noted as a very appealing market niche. This is mostly a result of their high consumption rates and low manufacturing costs. As a result, they are expected to expand considerably over the forecast period. Regulators and medicinal gas retailers are also anticipated to experience significant growth. Numerous major players have been prompted to regularly update their product portfolios due to the increasing efforts addressing safety-related issues, which is anticipated to fuel segment expansion over the projection year.

On the other hand, manifolds held the second-largest market share in 2022. Medical institutions employ manifolds to supply pipeline systems with a constant flow of medical gases. As a result, they play a crucial role in the transportation of gases, which in turn stimulates market expansion. The rising demand for manifolds is also boosting market growth due to the rising need for medical gases in hospitals and ambulatory surgical centers.

Based on the application, the global medical gas equipment market is split into therapeutic, diagnostics, pharmaceutical manufacturing and research, and other therapeutic applications.

The therapeutic segment dominates the global market and is predicted to grow fastest over the forecast period. The therapeutic segment held a market share of 29.05% in 2022. The rising prevalence of cardiovascular and respiratory illnesses is largely responsible for the rise in medical gases and equipment utilization. Medical gases are treated as medications and must meet high purity and quality requirements. The most popular therapeutic gases include helium/oxygen combinations, medical air, oxygen, nitric oxide, and carbon dioxide. All facets of healthcare, from anesthesia to inhalation therapy, heavily rely on medical oxygen.

In hospitals, nitrous gas is in high demand for cryosurgical operations as a refrigerant, anesthetic, and painkiller. Patients with weakened lungs can breathe in mixes containing helium. Medical gases and equipment utilized for various clinical purposes have expanded due to significant improvements in the therapeutic applications of medical gas mixtures.

Based on end-user, the global medical gas equipment industry is segmented into hospitals, home healthcare, pharmaceutical and biopharmaceutical companies, diagnostic and research laboratories, and academic institutes and research institutes.

The hospital segment held the most considerable market share in 2022, with a revenue share of 26.81%. Several medical operations need medical gas equipment, which also helps assure the comfort and safety of the patient. It consists of equipment that regulates the flow and pressure of gases, such as gas cylinders, pressure regulators, flow meters, and other related tools. According to a July 2018 article in MDPI, as medicinal gases are only utilized for patient care, their use in hospitals is correlated with the volume of medical activity. In addition, medical gas use directly correlates with increased hospital activities. For instance, a rise in surgical procedures increases the need for medical air, carbon dioxide, oxygen, and nitrogen oxide. Similarly, an increase in outpatient procedures leads to increased oxygen usage.

Home healthcare provides the option for people to get medical care at home. Medical gases like oxygen and nitrogen are used in at-home healthcare to treat patients with respiratory illnesses like chronic obstructive pulmonary disease (COPD). Patients can employ oxygen delivery systems connected to portable oxygen concentrators or compressed gas cylinders delivered to their homes.

Recent Developments

• March 2023- Atlas Copco AB announced that it acquired the operating assets of the FS Medical Technology Business. Piped medical and laboratory gas equipment and systems are sold, checked, and tested by FS Medical Technology.
• January 2023- Atlas Copco AB announced that it purchased MedCore Services Inc. Medical air systems, hoover systems, and pipeline equipment are among the piping medical gas equipment that MedCore Services Inc. services. Customers in Canada include both public and private healthcare facilities.
• October 2022- ESAB Corporation, a global leader in fabrication and gas control technology, announced that it had paid a private investor group USD 127 million in cash to acquire Ohio Medical, LLC ("Ohio Medical"), a global leader in oxygen regulators and central gas systems.