Endoscope Reprocessing Systems & Software Solutions Market in Australia worth USD 77 Mil by 2023

The market for Endoscope Reprocessing System and Software solutions in Australia is estimated to be USD 47.76 Million in 2018 clocking a healthy CAGR of 10.1% and is expected to reach a market size of USD 77.27 Million in the year 2023.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Drivers
Market Restraints
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Market Size and Forecast
Market Outlook
Distribution Chain Analysis
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

Endoscopes are crucial therapeutic and diagnostic devices. Endoscope reprocessing solutions are used by skilled and trained staff for decontamination and cleaning of an endoscope. In-between two patients and at the end of each list, endoscope decontamination process is undertaken in dedicated rooms.
Endoscope reprocessing solutions are used in manual cleaning of an endoscope with an enzymatic detergent and further used in automatic endoscope disinfection.
Endoscope reprocessing solutions are used in correct temperature and in accordance with the user manual. It is important to check compatibility of chosen endoscope reprocessing solution and manufacturer approval for the given solution. Endoscopes have diverse types of sterilization and cleaning processes, provided by the manufactures, which should be followed strictly to avoid contamination and complications.
Some disease agents like variant Creutzfeldt-Jakob disease are resistant to Endoscope reprocessing solutions, in such cases endoscopy should be avoided, though the chances of the transmission of the agent are extremely low.
Coupled with endoscope reprocessing devices, endoscopic reprocessing solutions play crucial role in cleaning and decontamination process of endoscopes.
International recommendations for Endoscope Reprocessing are a step-wise process including: pre-cleaning, leak testing, cleaning, rinsing, high level disinfection (HLD)/sterilization, rinsing, drying and storage.

Steps in Endoscope Reprocessing

The various steps involved in Endoscope Reprocessing includes

Endoscope Point of use Pre-Cleaning: Pre-cleaning products prevent drying of hard-to-clean soils on endoscopes at the point of use, making them easier to clean during processing.
Endoscope Cleaning: Superior performing endoscope detergents and cleaning tools designed to quickly and easily break down soils and protect the integrity of devices.
Cleaning Verification: Quick detection of residual proteins on both internal and external surfaces of endoscopes
High Level Disinfection: Maintain patient and staff safety with oxidative chemistries to accelerate the workflow.
Liquid Chemical Sterilization: Liquid chemical sterilization provides a higher standard of reprocessing assurance while eliminating all microbial life, including bacterial endospores, in a 23-minute cycle.
Endoscope Transport and Storage Cabinets: Endoscope Transport and Storage cabinets help keep patients safe by eliminating contamination touch points while exceeding evolving guidelines for endoscope drying, storage and transport.

Endoscope Reprocessing Systems and Software solutions

The various types of Endoscope Reprocessing and Software solutions based on the different categories are as listed below

Core equipment

Automated endoscope reprocessors (AERs) Automated Endoscope Reprocessors (AERs) are important devices widely used in the health care setting to reprocess endoscopes, such as duodenoscopes, and endoscope accessories, to decontaminate them between uses
Storage and Drying Cabinets are designed to efficiently store, dry and manage your scopes

Consumables

Disinfectants and Chemicals disinfectants are required to remove bacteria, bacterial spores, viruses, fungi, and acid-fast bacilli. A number of disinfectants are available, six of which have been approved glutaraldehyde (GA), orthophthalaldehyde (OPA), peracetic acid (PAA), hydrogen peroxide (HPO), electrolyzed acid water (EAW), and PAA/HPO blend.
Detergents Endoscope detergents are chemicals used for disinfection of various medical devices like endoscopes. Detergents and disinfectants can kill almost all types of vegetative non-spore forming bacteria, fungi, viruses and mycobacteria (TB). Detergents and disinfectants take lesser time to make the endoscope contamination free but cannot kill all types of bacteria completely as compared to the sterilization procedure. Some of the examples of these solutions are alkaline glutaraldehyde solutions, peracetic acid solutions and glutaraldehyde solutions with isopropanol.

Support Products

Scope Transport Carts (Trays and Trolleys) Transport and Storage System protects your endoscopes and other delicate equipment by minimizing direct handling and reducing contact with airborne contaminants during transport and short-term storage. It creates a protective environment for each disinfected endoscope. Green (clean) and red (contaminated) color-coded liner covers provide immediate identification of clean or contaminated endoscopes.
Flushing Sinks insert fits into pre-existing sink basins to raise the work level and reduce deep back bending and injury. It helps make staff more comfortable at the sink by easing the strain on backs and legs.
Test Strips are used to effectively measure the minimum recommended concentration (MRC) of Rapicide Glutaraldehyde High-Level Disinfectant and Sterilant. These test strips help users get the most cycles possible from their Rapicide solution

Cleaning Products (Wipes, Sponges, Brushes) Cleaning Products such as wipes, Sponges and Brushes are specifically fabricated for cleaning Endoscopes

Software Solutions

Integration Software Solutions connects all aspects of the healthcare facility’s operation for maximum efficiency. Automate GI and pulmonary documentation and archive critical patient data to the HIS/EMR system. Automatically track the reprocessing data by scope, by patient and by AER for the highest level of infection control. and integrate it all with OR and procedure suites that offer visionary control, enterprise-wide communication and video management for improved workflow. All designed to help optimize the operational efficiencies and improve the quality of patient care.
Track & Trace Solutions is a computerised tracking and traceability software solution designed specifically for use in endoscope reprocessing units. The full floor management system allows the user to record the endoscope decontamination process through manual wash, automated washer reprocessing, storage and finally to use on a patient.

Market Overview

The market for Endoscope Reprocessing systems and Workflow solutions in Australia is estimated to be USD 47.76 Million in 2018 clocking a healthy CAGR of 10.1% and is expected to reach a market size of USD 77.27 Million in the year 2023.
The total number of endoscopy procedures in Australia stood at 3.94 million in 2018. They are expected to grow at a CAGR of 6.5% during 2018-2023 to reach 5.4 million in 2023.
While flexible endoscopy procedures accounted for 65.3% of the total procedural volume in 2018, the growth in volume will be equally driven by both rigid and flexible procedures growing at almost equal CAGRs of 6.2% and 6.7%, respectively, during 2018-2023.
Inpatient settings are still the ones taking up higher loads of endoscopic procedures in Australia, accounting for 67.8% of procedures in 2018.
Hospitals are expected to dominate the procedural volumes during the forecast period, at a continuously reducing share, accounting for 64.1% of total procedures in 2023, thus losing ground to outpatient and day care settings.

Market Risks

Lack of Healthcare Infrastructure

With a lack of funding, the state of facilities and equipment in rural hospitals often lags significantly behind that in their metropolitan counterparts. Without access to decent public hospital facilities, the doctors cannot maintain their procedural skill levels, and the opportunity to train new doctors in rural areas is greatly diminished.

Top Market Opportunities

Disposable Incomes and Rapid Growth

In Australia, the average household net-adjusted disposable income per capita is USD 33 417 a year, more than the OECD average of USD 30 563 a year and the rapid economic growth in Australia is rising the demand for medical diagnostics thereby fuelling the market for Endoscope Reprocessing Systems and Software Solutions

Research and Development in the Advanced Diagnostics Field

The rise in R&D in Advanced Diagnostics Field has given rise to breakthrough technologies such as pass-through AERs, inbuilt barcode/RFID reader and electronic documentation interface which drives the adoption of Endoscope Reprocessing Systems and Software Solutions.

Market Drivers

The Key Market Drivers for the Endoscope Reprocessing Systems and Software Solutions include:

Technological advancements and increasing complexity of Endoscope Designs leading to specialized requirements for manual cleaning and reprocessing
The drive to enhance patient safety and reduce hospital-acquired-information (HAI) rates has increased the adoption of specialized disinfection systems.
Inefficiencies of manual disinfection and risk associated with clinician exposure to chemicals are driving the adoption of AER’s

Market Restraints

High cost of Endoscopy procedures & Reprocessing equipment

The cost of consumable supplies required for endoscope processing and reprocessor maintenance is valued around USD 8.31 per scope and labor cost at USD 11.88 per scope which is significantly high and Reprocessing Equipment costs which includes potential damage to endoscope use, cost to process re-useable items, sterility is pricking the growth of the Endoscope Reprocessing and Software Solutions market in Australia.

Concerns regarding the safety of Reprocessed Instruments

Safety concerns and hygiene concerns regarding the Reprocessed Instruments has increased preference for “Single-Use” instruments and is expected to restrain the growth of the market.

Limited Reimbursements

The reimbursement for the cost of endoscope reprocessing and disposable instruments is insufficient in Australia suggesting the need for adequate compensation to avoid reuse and is acting as a restraint for the adoption of Endoscopy Reprocessing

Industry Challenges

Shortage of skilled labor

There is a requirement of skilled professionals for the endoscopes sterilization process, as there is less number of certified professionals in the domain, this comes as a challenge for the growth of the market.

Resistance developed to Endoscope Reprocessing Solutions

The important challenge comes in the form of resistance developed to Endoscope Reprocessing Solutions by few disease agents due to the compromised immune status of the patient including HIV infection, neoplastic disease, transplant patients, and immunosuppressive treatment.

Technology Trends

Automated Endoscope Reprocessors (AERs)

AERs are important devices widely used in the healthcare setting to reprocess endoscopes such as duodenoscopes, and endoscope accessories to decontaminate them between uses. AERs are designed to kill micro-organisms in or on reusable endoscopes by exposing their outside surfaces and interior channels to chemical solutions.

Robotics

A hybrid rigid-soft robotic arm combines soft robotic technologies with origami-inspired rigid structures to generate forces sufficient to manipulate tissue while minimizing injury.
EndoMODRA (Endoscopic Module for On-Demand Robotic Assistance), another endoscope add-on device, aims to integrate the increased dexterity and control of advanced robotic systems into a low-cost, single use module that attaches to the end of an endoscope and is equipped with on-board actuation and sensing capabilities.

Advanced Digital Technologies

The developments in the digital technologies has enabled the creation of off-the-shelf, turnkey and targeted software solutions with niche capabilities to monitor and track endoscopes and their inventory and repair needs, in addition to reprocessing and maintaining throughput.

Pricing Trends

The cost of consumable supplies required for endoscope processing and reprocessor maintenance is valued around USD 8.31 per scope and labor cost at USD 11.88 per scope.
The Capsule Endoscopy which is used to record images of the gastrointestinal tract to either diagnose or monitor certain medical conditions costs an average of USD 1,229.35 per screening

Regulatory Trends

Private Health Facilities Regulation 2017

Private Health Facilities Regulation 2017 set out the requirements for licensing and the minimum standards for the provision of safe, appropriate and quality health care for patients in private health facilities. There are 19 prescribed classes of health services.

Facilities can be licensed for more than one class of health service which includes Gastrointestinal Endoscopy. This reform from the government is set to fuel the growth of Endoscope Reprocessing Systems and Software Solutions.

Market Size and Forecast

The market for Endoscope Reprocessing System and Software solutions in Australia is estimated to be USD 47.76 Million in 2018 clocking a healthy CAGR of 10.1% and is expected to reach a market size of USD 77.27 Million in the year 2023.
The Endoscope Reprocessing System market in Australia is estimated to be USD 36.48 Million in 2018 clocking a healthy CAGR of 11% and is expected to reach a market size of USD 61.47 Million in 2023.
The Endoscope Software solutions market size in Australia is estimated to be USD 11.28 Million and is expected to clock a market size of USD 15.8 Million.
The total number of endoscopy procedures in Australia stood at 3.94 million in 2018. They are expected to grow at a CAGR of 6.5% during 2018-2023 to reach 5.4 million in 2023.

Market Outlook

The market for Endoscope Reprocessing System and Software solutions in Australia is estimated to be USD 47.76 Million in 2018 clocking a healthy CAGR of 10.1% and is expected to reach a market size of USD 77.27 Million in the year 2023.
The total number of endoscopy procedures in Australia stood at 3.94 million in 2018. They are expected to grow at a CAGR of 6.5% during 2018-2023 to reach 5.4 million in 2023.
While flexible endoscopy procedures accounted for 65.3% of the total procedural volume in 2018, the growth in volume will be equally driven by both rigid and flexible procedures growing at almost equal CAGRs of 6.2% and 6.7%, respectively, during 2018-2023.
Inpatient settings are still the ones taking up higher loads of endoscopic procedures in Australia, accounting for 67.8% of procedures in 2018.
Hospitals are expected to dominate the procedural volumes during the forecast period, albeit at a continuously reducing share, accounting for 64.1% of total procedures in 2023, thus losing ground to outpatient and day care settings.

Distribution Chain Analysis

While, the number of day care facilities has increased in Australia, the market has not shown a proportionate growth in newer unit shipment of AERs, as is evident from the near-equal growth in replacement and new installation.

This is due to the fact that a comparatively lower proportion of Australian day-care facilities have their own decontamination units. The lower number of decontamination facilities in day-care units, indicates higher prevalence of outsourcing of reprocessing loads to bigger neighbouring facilities.

Additionally, an uptick in commercial outsourcing of endoscope reprocessing over the past 2-3 years, has led to a further decrease in the need for an already size-restricted day-care facility to have its own decontamination facility.

Competitive Landscape

Major players are focusing on establishing new setups to support manufacturing and sales activities. They are also getting involved in technology transfer and strengthening of their brand recognition in the market via collaboration and partnerships with domestic key players and third-party distributors

Strategic collaboration among manufacturers, healthcare providers, accrediting organizations, professional societies, and government agencies may help to design, approve and distribute automated endoscope reprocessing devices; hence such collaboration will benefit all stakeholders in the coming years

Competitive Factors

Acquisition costs

While the costlier Endoscope Reprocessing System can provide an array of features, most advanced Endoscope Reprocessing System can come at half the price which is being most preferred. It is implicit that overall costs per cycle, including expenditures for service, support, energy, training, disinfectants and other consumables, such as test strips must be considered.

Footprint and specifications

The Endoscope Reprocessing System that does not impact reprocessing room layout or incur additional expense is poised to be the ideal Endoscope Reprocessing System.

Automated Records

There are many variations on the automated device tracking function, but the main factor involved is rectifying human error and labor associated with manual entry. Automation saves time and is an important enhancement to infection control efforts. The Endoscope Reprocessing System that provides simple Automation is poised to disrupt the market.

Cycle Time

Some Endoscope Reprocessing System have shorter cycles but only process one scope at a time. Others are dual scope units capable of reprocessing two scopes at once, either in a single basin for energy and cost efficiencies, or in two separate basins for independent cycle times. The best solution depends on the scope inventory and procedure load. The Endoscope Reprocessing System that offers optimal cycle time is set to offer maximum benefits

Compatibility

The Endoscope Reprocessing System that provides compatibility with a specific AER or chemical. Chemical compatibility is influenced by a number of factors, including the chemical itself, the required contact time with the endoscope, and the temperature at which the chemical is used.

Cost

There are many features to consider when evaluating a new Endoscope Reprocessing System. Although cost is the most obvious factor that may influence a purchasing decision, determining the actual cost of using an Endoscope Reprocessing System may be less obvious.

It includes not only the cost of the actual unit, but also installation costs, energy costs, the cost of the consumables to support the Endoscope Reprocessing System, labor costs associated with staff in reprocessing the endoscopes, repair/service costs for the Endoscope Reprocessing System, and repair costs for the endoscope being reprocessed.

Key Market Players

PENTAX Medical is a division of HOYA Group delivering endo-imaging solutions. Established in 1919 in Japan, PENTAX Medical is a globally diversified company with R&D innovation and manufacturing centers in Japan, Europe, Australia and the United States.

Through leading-edge optical technologies, PENTAX Medical is providing the most advanced clinically relevant endo-imaging solutions. Together with comprehensive customer service offerings, PENTAX Medical is collaborating with customers worldwide to create long-term partnerships and customer satisfaction.

Olympus Corporation is a Japanese manufacturer of optics and reprographyproducts. Olympus was established on 12 October 1919, initially specializing in microscopes and thermometers.[4] Olympus holds roughly a 70-percent share of the global endoscope market, estimated to be worth approximately US$2.5 billion. Its global headquarters are located in Shinjuku, Tokyo, Japan.

Ethicon, Inc. is a subsidiary of Johnson & Johnson. It was incorporated as a separate company under the Johnson & Johnson umbrella in 1949 to expand and diversify the Johnson & Johnson product line. Ethicon has manufactured surgical sutures and wound closure devices since 1887

Covidien plc was an Irish-headquartered global health care products company and manufacturer of medical devices and supplies. Covidien became an independent publicly traded company after being spun off from Tyco International in 2007. It was purchased by Medtronic in a transaction that closed in 2015

Strategic Conclusion

The market for Endoscope Reprocessing System and Software solutions in Australia is estimated to be USD 47.76 Million in 2018 clocking a healthy CAGR of 10.1% and is expected to reach a market size of USD 77.27 Million in the year 2023.The Endoscope Reprocessing System market in Australia is estimated to be USD 36.48 Million in 2018 clocking a healthy CAGR of 11% and is expected to reach a market size of USD 61.47 Million in 2023. The Endoscope Software solutions market size in Australia is estimated to be USD 11.28 Million and is expected to clock a market size of USD 15.8 Million.
The Shortage of skilled labor and Resistance developed to Endoscope Reprocessing Solutions are the challenges being faced in the market.
The growth in the market is driven by factors such as Technological advancements and increasing complexity of Endoscope Designs, The drive to enhance patient safety and reduce hospital-acquired-information (HAI) rates and Inefficiencies of manual disinfection and risk associated with clinician exposure to chemicals

Appendix

HLD – High Level Disinfection
AER – Automated Endoscope Reprocessors
USD – US Dollar
R&D – Research and Development
HAI – Hospital-Acquired-Information
MRC – Minimum Recommended Concentration
RFID – Radio Frequency Identification
CAGR – Compounded Annual Growth Rate
OECD – Organisation for Economic Co-operation and Development