The global closed system drug transfer device (CSTD) market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, quality, and reliability. It is decisive for the vendors to provide cost-efficient and high-quality products, to survive and succeed in an intensely competitive and growing market environment.
The growth of market vendors is dependent on market conditions, government support, and industry development. Thus, vendors should focus on expanding geographically and improving their products. They primarily focus on the development of novel products. Although international players are dominating the market, regional and foreign players with small market shares also have a presence. The international players may strengthen their presence worldwide through acquisitions during the forecast period. It has also been forecast that improvement of the global economic scenario combined with efforts to enhance infrastructure in emerging nations, is fueling the market growth, thereby making it an ideal time for new products and to increase the global market share.
The vendors with better technical and financial resources could develop innovative products. Therefore, vendors must develop new technologies and stay abreast of emerging technologies that could affect the continuing competitiveness of their treatment lines in the market.
ICU Medical Inc. is a major player in the global closed system drug transfer device (CSTD) market. The company is involved in developing, manufacturing, and selling of medical devices used in vascular therapy, oncology, and critical care across the globe. The company specializes in infusion therapy, critical care, oncology drug delivery systems, infection control, nursing, medical devices, healthcare informatics, patient safety, hemodynamic monitoring, intravenous therapy, closed system transfer devices, intravenous workflow software, intravenous safety software, and intravenous smart pumps.
Market key developments give a glimpse of major events that have occurred and occurring in the market. The global closed system drug transfer device (CSTD) market is developing, and players such as Becton, Dickinson and Company and ICU Medical Inc. are focusing on acquisitions for improving their product portfolio and expanding their geographical reach. A company-wise detailed illustration of such events is mentioned in the below table.
Bargaining Power of Suppliers
The bargaining power of suppliers in the closed system drug transfer device market is high owing to the limited availability of suppliers in the market. CSTD are designed to prevent the transfer of contaminants into the environment during drug transfer between the vial and syringe. Due to the rising cases of cancer, market players are coming up with more effective approaches to reducing environmental contamination during antineoplastic drug preparation.
Currently, there are few numbers of CSTD available in the market such as ChemoClave Genie and Spiros by ICU Medical, PhaSeal by BD, Texium by CareFusion, OnGuard by B. Braun Medical, and Equashield by Equashield Medical.
Bargaining Power of Buyers
The bargaining power of buyers is medium in the closed system drug transfer device market. Patients are the major buyers for the market. The presence of buyers in the market is high due to the increasing prevalence of cancer. According to the American Cancer Society, it is estimated that around 1,735,350 new cancer cases were diagnosed in 2018. However, buyers are price sensitive, which moderately affects their bargaining power in the market.
Threat of New Entrants
The threat of new entrants is medium to low in the closed system drug transfer device market. Any drug transfer device manufacturing company trying to enter the market is required to abide by the mandatory regulatory standards. Moreover, closed system drug transfer devices require a sizable investment that makes it difficult for new businesses to begin operating in that market.
The market is also characterized by a high degree of brand loyalty where establishing a brand name is difficult for newcomers.
Threat of Substitutes
The threat of substitutes in the closed system drug transfer device market is medium. Owing to the rising awareness about the efficiency of CSTD devices, many hospitals in different regions are using CSTD devices for drug transfer. Still, there are many hospitals where the traditional needle and syringe method are used for antineoplastic drug transfer.
Intensity of Rivalry
The degree of competition in the closed system drug transfer device market is medium as there are few numbers of players in the market. The moderate degree of product differentiation among existing players also affects the intensity of rivalry in the market. Companies involved in the closed system drug transfer device market are trying to develop better and cost-effective products to make product differentiation more affordable in developing regions. To overcome the competition, players are engaged in developing a process to lower their manufacturing cost. Moreover, the players are also developing advanced techniques for differentiating their products from their rivals.
