Personal protective equipment in healthcare has been in high demand due to the COVID-19 pandemic, and this demand is reflected in its market outlook. The PPE industry is likely to generate close to triple its 2019 revenue by 2027.
A new report from Allied Market Research estimates that the PPE market will reach $33.4 billion globally by 2027, up from just $12.9 billion in 2019, at a compound annual growth rate (CAGR) of 12.4%.
WHAT'S THE IMPACT?
Based on end-user, the hospital segment accounted for the largest share in 2019, holding more than two-fifths of the global healthcare PPE market share, and is expected to maintain the largest share throughout the forecast period. The same segment is also expected to register a hefty CAGR of 13.1% from 2020 to 2027.
The rise in demand for PPE – which includes protective clothing, face and eye protection, and gloves and masks – is directly correlated to the COVID-19 coronavirus. The rise in investment from public and private players in the production of healthcare PPE kits to meet the increasing demand is also fueling the growth of the market.
In particular, N95 masks are driving much of the projected market growth as such masks are more effective than other face coverings in preventing the spread of the coronavirus. Goggles, gowns and coveralls are all factors in the projected growth as well.
There also appear to be opportunities for innovation on the horizon, which is catching the attention of investors. The development of healthcare PPE kits based on bio materials is expected to usher in a number of business opportunities "in the near future," the report found, which could mitigate any negative impact of PPE on the environment, which is a current restraint on market growth.
Based on product, the protective clothing segment contributed to the largest share in 2019, accounting for more than one third of the global healthcare PPE market, owing to increases in the use of coveralls, gowns and scrubs as basic requirements for any healthcare personnel or patient. But at 14%, the respiratory protection segment is estimated to see the highest CAGR during the forecast period, attributable to the rise in usage of face masks by the general public.
North America has been and will remain the dominant market for PPE, the report found, thanks to world-class healthcare systems and stringent regulations for the use of proper PPE in healthcare settings.
THE LARGER TREND
In the early days of the pandemic in the U.S., many hospitals and health systems struggled to secure the necessary PPE due to widespread shortages. While these shortages have abated somewhat, many healthcare organizations are still concerned about maintaining their supply, and have also bemoaned shortages of other necessary pandemic items such as ventilators and respirators for critically ill patients.
Hospitals also describe increasing costs and decreasing revenues as a threat to their financial viability, and said that sometimes inconsistent guidance from federal, state and local authorities poses challenges and creates confusion for both hospitals and the public.