The global renal disease market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain the 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 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. International players are likely to 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.
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 product lines in the market.
Fresenius Medical Care AG & Co. KGaA is a German company and the world’s largest provider of dialysis products and services. It has served more than 1,90,000 patients in the US. The company aims towards sustainable growth and has provided more than 50,027,579 dialysis treatments to date. Development of innovative products and continuous improvement in dialysis treatments are its main strategies. Its centrally managed global research and development team helps to develop products efficiently and systematically.
AstraZeneca PLC is a biopharmaceutical company and one of the leading players in the global renal disease market. It has consistently received many product approvals related to the treatment of chronic kidney disease as well as end-stage renal disease. The company is driven by its innovative medicines. The company is also entering into emerging markets which helps in its market growth.
Amgen Inc. discovers, develops, manufactures, and delivers therapeutics for the treatment of various chronic diseases. It offers products such as Sensipar and Mimpara, among others for the treatment of renal diseases. The company has also received a lot of product approvals in the past years which has assisted the company to brace its position in the market.
Sanofi provided therapeutic solutions for various chronic diseases and rare diseases. It provides products such as Ferrlecit and Renvela for the treatment of patients suffering from chronic diseases, undergoing dialysis. The company also focuses on penetrating in the developing economies in order to expand its market share. Sanofi has strategic alliances with many other pharmaceutical companies which helps it to grow in the market.
Other major players in the global renal disease market include Pfizer Inc., GlaxoSmithKline PLC, Novartis AG, and Teva Pharmaceutical Industries Ltd.
Bargaining Power of Suppliers
The bargaining power of suppliers in the global renal disease market is low to moderate. In this market, the suppliers are laboratory instruments and numerous drug manufacturers. There are many major and small manufacturers involved in providing various drugs and equipment that are used in clinical research, new drug development and for the treatment of diseases. Most of the major players are investing huge money in R&D and new product development. Innovation and advanced products give an edge to suppliers. Major brands have a strong presence and brand value in the market while many medium and small players are also providing the same products at different pricing. Grey market of products is affecting the bargaining power of suppliers. Quality of the products are the key factors that directly affect the bargaining power of suppliers. Moreover, the larger the number of suppliers in the market lower is the bargaining power of the supplier. The innovation and cost-effective products give an edge to suppliers to increase their market and create brand loyalty among the customer.
Bargaining Power of Buyers
The bargaining power of the buyer in the global renal disease market is high. Bargaining power of the buyer can define by a number of buyers, switching cost from one seller to other, and availability of alternative products. If the number of buyers for renal disease products is high the bargaining power will be low. There are different research centers, hospitals and academic industries using treatment devices, so the demand for the product is high. The presence of a large number of suppliers and low switching cost increases the bargaining power of the buyer. The threat of backward integration is low in this market.
Threat of New Entrants
The threat of new entrants in the global renal disease market is moderate. The global renal disease market is growing rapidly due to the growing geriatric population and the increasing number of sports injuries worldwide, rising R&D funding for the development of new diagnostic devices, increasing demand for dialysis by the hospitals. The companies involved in the mergers and acquisitions and rapid product launches are generating a huge amount of profit and influencing the potential companies to enter into this market.
The specialist knowledge or expertise related to product development and the huge capital required for the development of renal disease products acts as an entry barrier for the new players. Brand loyalty and tough competition from existing companies also prohibit the entry of new players.
Further, several small and medium-size companies are creating their space and trying to capture the market share which mostly untouched by major players. Easy distribution and undifferentiating product are increasing the threat of new entrants in the global renal disease market.
Threat of Substitutes
The threat of substitutes in the global renal disease market is low. The innovation and launch of new diagnostic & treatment systems for chronic kidney diseases (CKD) and other renal anomalies are increasing the threat of substitution for existing products. The customers tend to select the product according to their need and which provide the best results. The other factors that increase the threat of substitutes are low brand loyalty, increasing the price of the product and low switching cost. So, the companies are focusing on developing high-quality and cost-effective products as per the market need to decrease the threat of substitute.
Intensity of Rivalry
The intensity of rivalry in the global renal disease market is moderate. The rising demand for treatment techniques and diagnostic products by the end user such as hospitals and research academies are contributing to the increase in rivalry among the companies to capture a large market. Also, the increase in similar types of product offered by different companies increases the competition among the companies. The increase in the number of players decreases the profit share for each company and results to increase the intensity of competition in the respective market.
