Blood & Organ Banks in the US Industry Market Research Report from IBISWorld has Been Updated
The industry is expected to grow strongly over the next few years. Demand for blood products and organ transplants will continue to rise. Meanwhile, technological innovations will both improve efficiency and feed demand for this industry's services. Financial contributions to nonprofit industry firms will rise as the economy returns to health and consumers add donations back into their budgets. For these reasons, industry research firm IBISWorld has updated a report on the Blood & Organ Banks industry in its growing industry report collection.
Los Angeles, CA (PRWEB) October 27, 2012
Blood and organs provided by the Blood and Organ Banks industry are in constant demand – each year, the United States faces a shortage of both. According to IBISWorld analyst Anna Son, “As the average population increases in age, health ailments rise in frequency and the demand for organs and blood continues to escalate.” The undersupply and strong demand makes industry services indispensable, and fortunately, medical advances are improving transplant applications. Even so, blood and organ banks depend on financial contributions because many are nonprofit organizations. This factor exposes the Blood and Organ Banks industry to fluctuations in the economy, since people and companies are less willing to donate during times of financial hardship. The recession caused revenue to fall in 2009 and 2010. A reduction in insurance coverage and in elective procedures that use tissue donations also contributed to the decline. Fortunately, the industry is expected to turn around. In 2012, revenue is expected to grow 8.7% to $11.0 billion as the economy continues to recover, which will contribute to average annual growth of 2.7% during the five years to 2012.
Growth will accelerate in the next five years, boosted by implementation of an insurance exchange as part of the 2010 healthcare reform bill. “The population will continue to age, but at a slower rate, and technological advances in the healthcare sector will bolster industry demand,” says Son. These factors will dependably foster industry growth. The instance of man-made or natural disasters could also cause revenue to rise because contributions surge as companies like the American Red Cross expand fundraising efforts and individuals become more willing to contribute. Although such natural disasters are unpredictable, revenue is forecast to increase over the five years to 2017.
The Blood and Organ Banks industry has a low and increasing level of concentration. The four largest firms are expected to account for about one-third of industry revenue in 2012. However, concentration varies significantly by segment. Nearly half of America's blood supply is collected by The American Red Cross, and about 50.0% is collected by community blood centers. A small number of hospitals collect blood for their own use, and the American Services Blood Program collects blood to meet some of the military needs. The plasma collection business is even more concentrated. About 70.0% of all plasma collection centers are owned by CSL Behring, Baxter International Inc and Grifols SA. Their plasma collection segment underwent significant consolidation during the past decade.
While industry revenue is forecast to grow, escalating regulatory costs will encourage operators to consolidate to maintain profitability. During the five years to 2017, the number of organizations is forecast to decrease. This consolidation will help boost operating profit margins in 2017. In addition, developments in genetic research, stem cell research and regenerative medicine will underpin the importance of biobanking (i.e. archiving biological samples) in research and in meeting organ demand.
For more information, visit IBISWorld's Blood and Organ Banks in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes companies that are primarily engaged in collecting, storing and distributing blood, blood products and body organs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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