Increasing COVID 19 cases, rising government spending on healthcare and developing COPD cases are driving the demand for oxygen cylinders.
The global oxygen cylinders market was valued at USD 1.1 billion in 2020, and it is expected to reach USD 2 billion by 2027, with a CAGR of 9.1%, during the forecast period.
An oxygen concentrator is a medical device that concentrates and purifies oxygen from ambient air. This has gained much importance in Covid-19 pandemic times. This device can be used among the patients in home isolation and for hospitals running out of oxygen. According to a 2015 report by the WHO, concentrators are designed for continuous operation and can produce oxygen 24 hours a day, 7 days a week, for up to 5 years or more. Portable oxygen concentrators market held over 50 % revenue share in 2020. Advantages offered by portable oxygen concentrators are ease of use, portability, and light in weight. Expected entry of novel oxygen concentrators by conspicuous organizations offering versatility with improved innovation will additionally affect the business size. However, rigid administrative and regulations related with manufacturing and marketing guidelines of clinical oxygen concentrators may restrict product growth.
Factors driving the growth of oxygen concentrators include rising occurrence of COVID-19 cases, worldwide expanding older population base, developing COPD commonness around the world, expanding government drives, and increase in medical services spending. Additionally, increase in adoption of smoking and tobacco utilization and pollution across the world further lead to growth in lungs disorders.
Growing initiatives by private and government organizations, and rising awareness for need of purified oxygen to the patients are some of the other drivers of the market. Initiatives include a crowdfunding campaign wherein more than 50 journalists and craftsmen from South Asia and abroad united together under the Artists for India drive to raise assets for oxygen concentrators.
Several governments are taking initiatives to enhance the penetration of oxygen concentrator in the Covid situation. For instance, the central government of India capped the trade margin on oxygen concentrators at 70% to distributor level in order to keep in check the price. Previously, this margin was upto 198% in the country. Hence, such initiatives are expected to propel the market growth.
The major players operating in the oxygen concentrators market include Koninklijke Phillips N.V., NIDEK Medical Products, Inogen, ResMed, Chart Industries, Inc. (AirSep), DeVilbiss Healthcare LLC, O2 Concepts, Teijin Limited, Supera Anesthesia Innovations, and GCE Group, and Invacare Corporation among different players. These market players are embracing different inorganic and organic strategies to expand their presence across the globe.