The global terminal sterilization services market was valued at USD 8.84 billion in 2020 and is expected to grow at a CAGR of 10.4% during the forecast period. The increasing prevalence of various chronic diseases, increasing incidence of Hospital Acquired Infections (HAIs), and the effects of the COVID-19 epidemic are critical factors that drive the market's growth. Sterilization goods such as ethylene oxide, heat sterilizers, and other products are in high demand right now across the globe to deal with a COVID-19 spike.
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Increased demand for adequate sanitization of equipment and surroundings has surged the usage of sterilization equipment and facilities in pharmaceutical manufacturing units, hospitals, biopharmaceutical industry, and testing laboratories has further increased the market growth for terminal sterilization services. The recent upsurge in COVID-19 cases has increased the demand for terminal sterilization services. According to data published in Worldometer, over 142,096,751 million cases of COVID-19 were recorded in April 2021, and about 3,034,989 million deaths have been recorded worldwide.
This rapid increase has led companies to develop efficient sterilizers, which hospitals and laboratories primarily use to disinfect medical instruments and equipment to prevent cross-contamination, thus increasing demand for terminal sterilization services.
The global market for terminal sterilization services is mainly driven by factors such as increased hospital-acquired infections (HAI) and the emergence of the COVID-19 outbreak. Sterilization is given prime importance in the hospitals, pharmaceutical industries, and laboratories across the globe, which is expected to fuel the growth of the market in the coming years.
There is an increase in the market demand for N95 masks to prevent infection, but there is a limitation in mask production. Hence sterilization systems will play an important role in the reuse of masks. The increasing hospitalization due to infection will need more sterilization of equipment and instrument in hospitals which is expected to boost the market growth for terminal sterilization services.
The number of surgeries is increasing every year owing to an increase in chronic diseases such as cardiovascular diseases and cancer. Twenty million cancer patients are diagnosed every year, and surgical procedures are part of the cancer treatment plan. In the U.S. alone, 129 million surgical procedures were conducted, and the number is expected to increase to 144 million by 2023. The increase in surgical procedures will increase the need for sterilization systems in surgical setup.
Hospital-acquired infections (HAIs) are prevalent in hospitals in all parts of the world. The U.S. alone has an estimated 1.7 million cases of HAIs every year, resulting in nearly 1 lakh death. Surgical site infections (SSIs) are responsible for 22% of all HAIs in the U.S. Hospital-acquired infections (HAIs) account for 10% in developing and 7% in developed countries, and SSIs occur in 2 to 4% of patients undergoing hospitalization. SSIs occur mostly due to improper sterilization of surgical devices and instruments. Hence advanced sterilization techniques are adopted in hospitals to prevent SSIs.
Advanced terminal sterilization services are introduced in the market owing to the needs of healthcare. In June 2020, Defence Research and Development Organisation (DRDO) developed a sterilization system based on ozone to disinfect PPEs. Advanced oxidative process using Ozonated Space Technology consisting of multiple barrier disruption approaches is used for disinfection.
Sterifre Medical, Inc. received USD 8 million funding, in 2019, for the development of Aura, an automatic sterilization system based on hydrogen peroxide. To date, the company has raised USD 20 million, including this new funding.
The market is primarily segmented on the basis of product, end-use, and region.
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Ethylene oxide dominated the global market for terminal sterilization services and generated the highest revenue in 2020. Ethylene oxide has been commonly used as a very low-temperature sterilizing technique and found to be well-suited with a wide range of medical devices and materials.
In healthcare facilities, this sterilizing method is used to substitute for steam/dry heat for sterilizing heat-sensitive and moisture-intolerant surgical equipment and supplies. As a result, this technique can treat products that cannot withstand extreme temperature and humidity, enhancing the segment's development in terminal sterilizing services industry.
The moist heat segment is anticipated to grow at a high CAGR during the forecast timeframe. This increase is due to the rise in sterilizing for cleaning medical instruments. Such techniques have gained acceptance in the dairy and pharmaceutical industries and research and development organizations.
The benefits of using these methods include their ability to sterilize liquid objects, nontoxicity, and low cost, increasing market penetration for terminal sterilizing services. This is intended to help the segment's supremacy during the forecast period.
The pharmaceuticals segment generated the highest revenue in 2020 and is expected to maintain its share during the forecast period. Increased research and development activity augmented the demand for various sterilizing processes in the pharma and biotechnology industries. As a result of the increasing need to sterilize manufacturing equipment and packages, pharma companies have increased their use of the terminal sterilizing process.
Furthermore, FDA regulations and standards for pharmaceutical formulations are key factors leading to the growing adoption of effective and innovative sterilizing methods, such as sterilizing through gamma rays and X-rays, thus leading to the segment's market growth of terminal sterilizing services.
North America is expected to be the biggest region for the global market for terminal sterilizing services during the forecast period due to advanced healthcare infrastructure, a growing number of surgeries, and an increasing number of employees in the healthcare sector. In the last few years, FDA has approved various terminal sterilizing services for use in the U.S. market.
The COVID-19 pandemic has also significantly impacted the U.S. being the worst-hit country across the globe. All these factors are expected to play a significant role in the growth of the market for terminal sterilizing services in this region.
High incidence of hospital-acquired infections and favorable government initiatives further drives the growth of the market for terminal sterilizing services. Furthermore, market growth is also expected to be fueled by strict regulatory policies to provide healthy and high-quality healthcare services over the forecast period.
The Asia Pacific is expected to be the fastest-growing region for the market for terminal sterilizing services during the forecast period due to improving healthcare infrastructure and massive investment by the government.
The rising need for reusable medical devices is expected to drive the growth of the industry. Furthermore, key players are attempting to penetrate potential markets such as India, Korea, and China, thus broadening the market's reach for terminal sterilizing services.
Significant companies are focusing on developing terminal sterilizing systems related to COVID-19 as there is an unprecedented demand for sterilizing services for PPEs and masks. Companies have made huge investments and collaboration to hold a competitive advantage over their rivals in the terminal sterilization services market.
Some of the major players operating in the terminal sterilization services market include Getinge Group, Advanced Sterilization Products Services, Inc., Steris Plc, Belimed, Cantel Medical, 3M, Sterigenics International LLC, TSO3, Matachana Group, and Olympus Corporation.
Market size value in 2020
USD 8.84 billion
Revenue forecast in 2028
USD 18.97 billion
10.4% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
By Product, By End-Use, By Region
North America Europe Asia Pacific Latin America; Middle East & Africa
Getinge Group, Advanced Sterilization Products Services, Inc., Steris Plc, Belimed, Cantel Medical, 3M, Sterigenics International LLC, TSO3, Matachana Group, and Olympus Corporation.