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12th February 2024 – Philips started the year with a bang with its shock announcement that it was withdrawing from the US market several of its sleep and respiratory solutions (notably from its Philips Respironics branded portfolio).
The update in its offering follows the costly process Philips is currently undergoing with regards to the Respironics field action. No further sales of the specified solutions will be made to the United States whilst Philips is working with the US Department of Justice (DOJ), representing the US Food and Drug Administration (FDA) on its consent decree, to make important changes to its solutions. Philips stated in its announcement that ‘these changes to our portfolio do not affect our commitment to the remediation of devices included in the June 2021 recall of certain CPAP, BiPAP and mechanical ventilator devices.’ Philips will continue to service existing installations during this time. Philips also made it very clear that its strategy is focused on improving research and development efforts to ensure such issues do not occur again. The company has very much felt the heat in response to the recall of its respiratory and sleep solutions, and is making every effort to win back its brand recognition as a good quality healthcare technology vendor.
Market Impact
The removal of several of its flagship solutions will no doubt have an impact on the global sales for the sleep and respiratory division. This will be in tangent with the surmounting costs to remediate the ongoing issue. Prior to the recalls made in 2021, Philips held a significant share of the ventilator market in the North American region, with Signify Research estimating its share of the Mid-range Critical Care market at just over 60% in 2021. This fell to just under 55% in 2022. It is expected a more significant decline in Philips market share would be seen in 2023, as many new vendors have been hot on the heels promoting existing non-invasive ventilator solutions as well as developing new products. This subsequent announcement will be welcomed by those players that have chosen to maximise on Philips unfortunate situation with subsequent product releases in this segment also expected.
The Front Runners
Signify Research reported on the developments in the ventilator market following the recall of Philips solution in this insight (published in August 2023). As discussed in the insight, alongside many other product recalls in the ventilator market, several vendors have also been making inroads into the dedicated non-invasive ventilator market with new product announcements. Signify Research had already started to see the dent on Philips’ market share as some of the leading critical care ventilators had entered the non-invasive market, with solutions coming from Draeger, Getinge, Nihon Kohden and Beijing Aeonmed. In its Ventilators – World – 2023 report, Signify Research projected that revenues for the Non-invasive segment of the Mid-range critical care market in North America would increase at a CAGR 8.5% from 2022 to 2027. With the recent movement from Philips to remove most of its respiratory solutions from sale, this market is likely to see a temporary dip in revenues, whilst other vendors seek to uplift their ability to produce and supply their solutions. However, market growth potential is likely to be there for the taking for those that are swift to react.
Future Outlook
Although the majority of non-invasive ventilator provision is within the mid-range critical care market, there is opportunity for growth in sub-acute settings. As ventilator provision expands out of the ICU to lower-acuity settings, there is a growing need for non-invasive solutions that can provide appropriate and low-cost ventilation for stable patients. Demand for stand-alone non-invasive technology is also increasing due to its affordability, in addition to supporting guidelines in use. With the increasing burden on hospitals, there has been a progressive shift in care toward low-acuity settings such as, general/step-down wards, skilled nursing facilities and into the home, in order to reduce overall pressure on hospital resources and subsequent costs. As such, availability of non-invasive or lower-acuity types of ventilation that allow transition of care is important and sought after. Many vendors have also launched dedicated standalone non-invasive ventilators to offer flexibility in lower-acuity settings. It will no doubt be an growing market in the coming years, as the battle to win share continues amongst those that remain.
Related Report
Ventilators – World – 2024
Signify Research is starting the research for its “Ventilators – World – 2024″ report, which be our third edition, building on our 2023 edition of the report. The report provides a data-centric and global outlook of the market. The report blends primary data collected from in-depth interviews with healthcare professionals and technology vendors to provide a balanced and objective view of the market.
About Kelly Patrick
Kelly joined Signify Research in 2020 as a Principal Analyst. She has over 15 years’ experience covering a range of healthcare technology research at IHS Markit/Omdia. Kelly’s core focus has been on the clinical care sector, including patient monitoring, diagnostic cardiology, respiratory care, and infusion and associated IT solutions. Kelly holds a BSc degree with honours in Pharmacology from the University of Leeds. In her spare time, Kelly has a passion for running and outings with her husband and three children.
About the Clinical Care Team
The clinical care team provides market intelligence and detailed insights on the clinical care equipment and IT markets. Our areas of coverage include patient monitoring, diagnostic cardiology, infusion pumps, ventilators, anaesthesia and high-acuity IT. Our reports provide a data-centric and global outlook of each market with granular country-level insights. Our research process blends primary data collected from in-depth interviews with healthcare professionals and technology vendors, to provide a balanced and objective view of the market.
About Signify Research
Signify Research provides healthtech market intelligence powered by data that you can trust. We blend insights collected from in-depth interviews with technology vendors and healthcare professionals with sales data reported to us by leading vendors to provide a complete and balanced view of the market trends. Our coverage areas are Medical Imaging, Clinical Care, Digital Health, Diagnostic and Lifesciences and Healthcare IT.
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