Medical gases are vital for the functioning of hospitals and other healthcare establishments. Medical gas systems in hospitals aid in the supply of piped oxygen, nitrogen, nitrous oxide, carbon dioxide, and medical air to recovery areas, operating rooms, and patient rooms. The gas flow is monitored by computerized alarm systems that alert hospital staffs in case of […]
READ MORE >>Medical gases are vital for the functioning of hospitals and other healthcare establishments. Medical gas systems in hospitals aid in the supply of piped oxygen, nitrogen, nitrous oxide, carbon dioxide, and medical air to recovery areas, operating rooms, and patient rooms. The gas flow is monitored by computerized alarm systems that alert hospital staffs in case of any anomalies. The growth in air pollution and changing climate are leading to an alarming increase in respiratory diseases such as asthma, TB, COPD, lung cancer, and pneumonia. This, in turn, is leading to an increase in the need for respiratory therapies, which is the key end-application for medical gases. Improving healthcare facilities, especially in regions such as APAC, MEA, and South America, is also leading to an increase in demand for medical gases for applications such as biological culture growth, medical equipment calibration, and diagnostic testing. (Source: Global Medical Gas Procurement Intelligence Report)
Key Markets
In the APAC region, the rise in income levels is expected to increase the demand for better healthcare facilities, which will, in turn, spike up the demand in the medical gas market. Furthermore, the rapid growth in industrialization and urbanization in this region is predicted to give rise to air pollution, which will drive the demand for improved respiratory health care. As a result, the medical gas market in the region is expected to experience growth. Most of the large, established suppliers in the medical gas market are based in North America and Europe, which is leading to a high supply influence from these regions.
Pricing model
Oil and gas form critical inputs for the medical gas market, where they are used as raw materials as well as to produce electricity. Natural gas is a critical raw material to produce gases such as carbon monoxide. The production process for gases such as oxygen and nitrogen require large quantities of electricity, and over 60% of the electricity consumed by suppliers is produced from fuels such as oil and natural gas. Hence, the rise in oil and gas prices will increase suppliers’ operating cost in the years to come. However, the increase in adoption of on-site gas generators can help control a drastic rise in prices. On-site gas generation offers benefits such as reliability of supply and control over the cost of gas produced. These factors are motivating buyers to prefer on-site gas generation plants.
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