U.S. demand for medical equipment and supplies is forecast to advance 3.9% yearly in nominal terms through 2023, according to Medical Equipment & Supplies: United States, a report recently released by Freedonia Focus Reports.
Continued increases in medical services expenditures – driven in large part by the aging of the population and supported by gains in disposable personal income – will boost sales of associated equipment and supplies.
New product introductions will help drive value growth, as providers and patients typically seek the latest treatment options. Faster gains will be limited by the use of pharmaceutical treatments and physical therapy to treat some ailments.
In real (inflation-adjusted) terms, demand for medical equipment and supplies is forecast to increase 3.4% per year through 2023, implying an inflation rate of less than 1.0%, continuing the trend of slow price growth.
Producers will continue to face increased price pressures from medical service providers and payers due to attempts to curb healthcare costs. Providers, who are facing more stringent reimbursement rates and various cost control efforts from payers, are in turn pressing manufacturers on prices. In addition, growing imports from countries with lower labor costs, such as Mexico and China, also help limit price gains.
This report forecasts to 2023 U.S. demand and shipments for new medical equipment and supplies in nominal U.S. dollars at the manufacturer level.
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