Despite the challenges to the general anesthesia drug market precipitated by COVID-19, its market share is projected to hit $2.4 billion by 2025. That’s a robust compound annual growth rate of 3.4%. But how did we get here? Who’s controlling this market? And how do we ride the crest of this wave without wiping out?
Turbulence doesn’t necessarily always mean shrinking markets. Growing markets can also cause instability at the practice level. However, with strategic planning and staying ahead of the trends, anesthesia practitioners can navigate these positive market changes with ease.
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Anesthesia Drug Market Growth by Segment
General anesthesia drug markets are separated into segments according to region, end-user, method of application, type (local vs. general), and sales and revenue. The hospital sector holds the largest share of the anesthesia market and is expected to continue to do so. By region, North America dominates the local anesthesia drug market. Thus, North American hospitals are about to experience a general anesthesia drug market boom.
The intravenous drug segment has the largest share by route of administration because it’s less expensive, requires less machinery, causes less cardiovascular depression, and has better postoperative analgesia. By type, the Propofol sub-segment is expected to show the fastest growth, thanks to its status as the most commonly used general anesthesia in surgeries. The fact that it has a rapid onset and quick elimination means it’ll continue to stay popular, especially as it has just been approved for use in COVID-19 cases.
Effects of COVID-19 on the Anesthesia Drug Market
COVID-19 did indeed cause some short-term negative growth in the general anesthesia drug market. Due to delayed or canceled elective surgeries during the lockdown, there was a drop in the need for general anesthesia at hospitals. In addition, COVID led to challenges in the supply chain, leading to delays in producing and delivering adequate anesthesia to the end-user. Now that these surgeries are, in most cases, proceeding again normally, anesthesia drug use is back to normal usage. If hospitalizations due to COVID increase, also, this will have positive growth in anesthesia trends. Respiratory system-related diseases are a growing cause of death in the US and will, unfortunately, drive market growth.
Other Anesthesia Drug Market Influences
The general anesthesia drug market is expected to have a CAGR of 3.4% thanks to a few factors, including an aging population, increasing cancer rates, and growing surgery rates. The UN World Ageing 2019 Report stated that the global population over 65 was 703 million. This number is expected to double to 1.5 billion by 2050. Like many other markets, the general anesthesia drug market in the US will have to follow the Baby Boomer bell curve as we approach 2025-2030. Besides simply aging, there is a growing incidence of cardiovascular disease, particularly in the US. Yearly, 647,000 Americans die of CVD, making it the leading cause of death.
In addition, elective and cosmetic surgeries saw a 22% increase within the last decade, and this trend is expected to continue. The local anesthesia market, much like the general anesthesia market, is being driven by various factors such as a rising number of surgeries that require local anesthesia, new product approvals, research and development, and the increased use of local anesthesia for postoperative pain. All of these factors are contributing to this wave of anesthesia market growth.
Independent anesthesia providers can stay abreast of these trends by embracing the market growth. Stay on top of the latest research and development of anesthesia drugs, as the FDA is rapidly approving new ones. Working in coordination with hospitals and practices that perform elective surgeries will keep you busy and in business. Streamlining your practice’s billing and coding practices as drug approvals change will also help in the long run. Understanding the causes of market trends can help your healthcare facility ride the crest of the wave.
If you have any questions about your anesthesia services or want to learn more about how you can get the most out of your anesthesia revenue, contact us today!