U.S. Oxygen Concentrators Market Trend Report: Comparative Analysis, Exit Strategies, Unit Volume & Market Value Insights (2018-2024 & 2030)

Market Overview: Evolving Trends in the Oxygen Concentrators and Respiratory Devices Market

The oxygen concentrators market is evolving alongside broader trends in the respiratory devices sector, driven by strategic decisions and technological advancements.

Key Trends in the Respiratory Devices Market:

• Anticipated Impact of GLP-1 Medications on PAP Devices for Obstructive Sleep Apnea (OSA):

  • Reduction in OSA Severity: Effective GLP-1 medications can lead to weight loss, potentially reducing OSA severity and reliance on PAP devices

  • Market Dynamics: Initial demand for PAP devices is expected to remain stable, but long-term demand may decline as patients experience improved OSA symptoms and reduced dependency on these devices

• Exits from the Mechanical Ventilators Market:

  • Medtronic: In February 2024, Medtronic announced its exit from the ventilator business, reallocating resources to more profitable segments

  • Philips: In January 2024, Philips discontinued several respiratory products, including ventilators and oxygen concentrators, significantly impacting the U.S. market

    • Market Influence: A survey by HME News in February 2024 indicated that 70% of industry respondents believe Philips' withdrawal will substantially affect the respiratory landscape, creating opportunities for other players to innovate.

Strategic Moves in the Oxygen Concentrators Market:

• Invacare:

  • Invacare has discontinued its respiratory product line, including HomeFill and oxygen concentrators, to realign with its mission and enhance shareholder value.

  • The decision follows a year-long review reflecting unfavorable market conditions. Invacare is shifting focus to key product lines that saw a 30% increase in orders in 2022.

• React Health:

  • React Health acquired Invacare's respiratory assets, impacting the oxygen concentrator market.

  • Implications:

    • Increased market competition could lead to competitive pricing strategies

    • Integration of Invacare's products may cause temporary supply disruptions but offer a broader range of options for customers

    • React Health is poised to become a notable player in the respiratory sector, influencing competitors' market strategies.

• Philips:

  • Philips' exit from select respiratory products, including the SimplyGo and Everflo oxygen concentrators, represents a significant market shift. A survey indicated that 70% of respondents believe this decision will greatly affect the respiratory market landscape

Impact of Notable Player Exits on Market Dynamics:

1. Strategic Innovation Opportunities: The exit of Philips creates both challenges and opportunities for other market players, prompting innovation in response to home care provider needs. Companies like GCE Healthcare are stepping in with new product offerings to fill gaps in the market

2. Optimistic Scenario for Competitors: The exit of Respironics presents an opportunity for companies like Inogen to strengthen their market position and financial performance by pursuing strategic initiatives

3. Anticipated Market Response: Other market players, including CAIRE, DeVilbiss, and Rhythm Healthcare, are expected to gain higher market share through strategic initiatives in response to the evolving landscape

4. Impact of Regulatory Stringency: Prolonged consent decrees faced by Invacare and Philips from the U.S. FDA highlight the stringent regulatory environment, raising concerns about the impact of regulatory scrutiny on market stability and innovation

Comprehensive Analysis of the U.S. Oxygen Concentrator Market:

1. Overall Shift in Dynamics: Adoption of Oxygen Concentrators

There has been a notable transition in the U.S. oxygen concentrator market from stationary to portable devices. This shift is evidenced by the significant increase in the adoption of Portable Oxygen Concentrators (POCs), which achieved a penetration rate of 22% in 2021. This insight is derived from an analysis of U.S. Medicare claims data from 2015 to 2021, supplemented by data from Inogen's financial reports. Below are the penetration rates for different categories from 2015 to 2021:

2. Comparative Stationary vs. POC Trend

The U.S. oxygen concentrator market is witnessing a significant shift towards portable devices, driven by leading players like Inogen and emerging companies like React Health and Direct Supply. In contrast, the stationary oxygen concentrator segment is characterized by Philips' exit and the rising influence of Drive and Caire. Both market segments display a trend of increasing market fragmentation and opportunities for new entrants, indicating dynamic and competitive landscapes in the coming years.

Portable vs. Stationary Oxygen Concentrators: Notable Players Comparative Analysis

List of notable players operating in the U.S. market:

• Inogen, Inc.

• Respironics (a subsidiary of Koninklijke Philips N.V.) {Effective from January 25, 2024, Philips Respironics halted the sale of their POCs, with the end of service scheduled for January 25, 2029}

• React Health (Respiratory Product Line from Invacare Corporation)

• Caire Medical (Acquired by Niterra Co., Ltd. formerly known as NGK SPARK PLUG CO., LTD.)

• DeVilbiss Healthcare (a subsidiary of Drive Medical)

• O2 Concepts

• Nidek Medical Products, Inc.

• GCE

• Rhythm Healthcare

• MedaCure Inc.

• GF Health Products, Inc.

• Direct Supply

• Compass Health Brands