A highly fragmented nature of player distribution existed in the U.S. medical waste management market in 2014. Local players accounted for over half the market’s value at the time, while the top four players occupied a share of around 47% in terms of value. Stericycle, Waste Management, Inc., Republic Services, Inc., and Clean Harbours – the leading players in 2014 – had commonly adopted aggressive market strategies through regular mergers and acquisitions.
As stated in a research report released by Transparency Market Research, the U.S. medical waste management market holds a low to medium range of threat to the current market by new entrants. The capital required to set up a medical waste management system can be too high for a large number of new players.
The competitive edge in this market is expected to sharpen up over time, owing to the large number of local players in the country, with whom the top players need to compete by lowering their product and service costs.
The U.S. market for medical waste management is expected to witness a cumulative CAGR of 3.4% from 2015 to 2023 for all its waste types, in terms of revenue. This market revenue is expected to reach US$6.35 bn by the end of 2016 and is projected to reach US$7.99 bn by the end of 2023.
Infectious Waste Management Demand on the Rise
In terms of types of wastes managed, the segment of non-infectious waste is expected to lead the U.S. market in terms of revenue generated, for the coming few years. By the end of 2023, this segment is expected to reach US$4.92 bn in revenue. This segment is benefitting massively from the growing awareness levels over the health issues created by mismanagement of non-infectious medical waste.
Meanwhile, the segment of infectious and pathological waste management is expected to expand at the leading CAGR of 4.3% from 2015 to 2023, owing to a surge in demand. This segment also includes pathological waste, although it requires a more specialized form of waste management. With the growing volume of infectious waste generated in the U.S. per day in medical organizations, it is logical for both government and private bodies to stress on its management a lot more.
Government Support Adds Massive Aid to Medical Waste Management Efforts
“A number of drivers are responsible for the growth in the U.S. medical waste management market. The leading one currently has to be the massive support shown by the U.S. government to this market. Medical waste management is being taken ever more seriously, with regulatory bodies such as the EPA, the FDA, and even the DEA working in tandem to ensure the proper disposal and management of medical waste in the country,” states a TMR analyst. Their activities range from conducting awareness increasing drives to approval of appropriate chemicals and disposal tools.
The U.S. government is not the only body supporting the U.S. medical waste management market. There are a large number of NGOs that are highly active in this field. Organizations such as Intervol, MedShare, and Health Care Without Harm are constantly engaging the healthcare sector for the appropriate disposal of medical waste.
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High Investment Costs Deter New Entrants
The entire process of managing medical waste incorporates the acts of collecting, processing, and finally disposing all non-hazardous and hazardous materials generated in the healthcare sector. This is a high costing process and requires a large amount of initial investment. Safety and legality are the two top concerns for any player in the U.S. medical waste management market, and achieving both on a successful scale requires massive capital investment. Achieving not only the proper number of treatment facilities and transportation vehicles, but also the licensing to be able to operate the entire process is costly and time-consuming.
“A great opportunity for players in the U.S. medical waste management market lies in operating within small quantity waste generators. These facilities offer a comparatively higher profit margin as opposed to large quantity generators of waste. A lot of companies are already entering into long-term contracts with small quantity waste generators. These avenues are providing a positive foundation for many medical waste management companies to thrive on,” adds the analyst.
The information presented in this review is based on a Transparency Market Research report, titled, “Medical Waste Management Market – U.S. Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 – 2023.”
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