Growing Demand for Improved Quality in Healthcare Drives Immunoassay Diagnostics Market.

LONDON--(BUSINESS WIRE)--March 6, 1996--The non-isotopic immunoassay systems market in Europe is tending towards oversupply with many competitors operating in this sector with similar products.

Many players in this market will face decreasing profitability with increasing competition in the

Major factors impacting the European non-isotopic immunoassay systems market include consolidation of manufacturers and suppliers, globalisation of sales expanding distribution and service activity and an increasing risk associated with the development and marketing of large immunoassay systems. Manufacturers of sophisticated immunoassay instruments are confronted with decreasing levels of profitability as they simultaneously offer purchasers reduced net costs, flexible payment systems and improved after sales services.

A new report by international marketing consultancy Frost & Sullivan values the European market for non-isotopic immunoassay and reagents systems at US $2.10 billion in 1995. Driven by the general growing demand for improved quality in healthcare, the market is expected to reach US $2.29 billion by the end of the forecast period in the year 2002.

The most active segment in the overall non-isotopic immunoassay systems market is the random access systems market, valued at US $537.0 million in 1995 and predicted to rise to US $1,043.9 million by the end of the study period in the year 2002. Germany is the leading national market with a 30.3 percent share of the 1995 market, followed by France (20.7 per cent) and Italy (16.2 percent).

Advanced technologies offered by these instruments greatly enhance testing in centralised testing facilities which are increasingly characterising the European healthcare industry. These systems offer increased accuracy, high volume throughput of analyses and reduce operator involvement significantly.

Leading the field in terms of revenues is the market for automated batch systems, estimated to have been worth US $1.10 billion in 1995 and predicted to experience a decline over the forecast period with an estimated 2002 market value of US $0.97 billion.

According to Debra Yetman, Healthcare Research Manager at Frost & Sullivan, recognition of the cost saving potential of timely and accurate diagnosis and monitoring, along with improved clinical usefulness of fast and regular testing through more efficient testing practices has sustained growth in the non-isotopic immunoassay market.

Yetman explains: "The rate of increased demand for immunoassay analysis in Europe is rarely matched by increased healthcare funding for analytes, however. Consequently, manufacturers are constantly challenged to make immunoassay analyses more cost effective and prove the significant medical value of these diagnostic tests."

Government-introduced regulations and reimbursements have had a major impact on the market in terms of increasing cost control pressures. Cost containment issues in European healthcare industries have further pressurised profit margins in the non-isotopic immunoassay systems market.

Placement of large immunoassay instruments is increasingly non-profit making with manufacturers adopting aggressive marketing strategies to place systems, as relatively high profits are realised through sale of reagents. Increased equipment placements justify ongoing product development and marketing costs, resulting in difficulties for smaller competitors to remain profitable in this market and creating a trend towards industry consolidation.

Frost & Sullivan is an international high-technology research firm. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology research reports. Visit our web site at http://www.frost.com

Report: 3265-53 Publication Date: February 1996 Price:$3900

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