Neonatal Care Equipment Market Research Report and Outlook by 2028

The neonatal care equipment market is anticipated to grow significantly, reaching an estimated US$ 3,103.81 million by 2028, up from US$ 1,934.24 million in 2021. This growth represents a compound annual growth rate (CAGR) of 7.0% from 2022 to 2028.

Several factors contribute to the expansion of the neonatal care equipment sector, including the rising incidence of premature births and low birth weight infants, alongside an increase in admissions to neonatal intensive care units (NICUs). Conversely, declining birth rates and the high costs associated with neonatal care equipment pose challenges to market growth.

Neonatal care equipment is essential for the treatment of small and ill neonates, ensuring they remain warm, monitoring their growth, treating conditions like jaundice, and providing necessary oxygen or respiratory support. Various devices are utilized in this care, including electric warmers, neonatal ventilators, continuous positive airway pressure (CPAP) devices, blood pressure monitors, cardiac monitors, pulse oximeters, capnographs, integrated monitoring systems, and more. Preterm birth is a critical public health issue, accounting for approximately 75% of global neonatal mortality. Low birth weight (LBW) serves as an important, albeit imperfect, indicator of preterm birth when precise gestational age cannot be determined. While there is a correlation between preterm births and LBW, those who are both preterm and LBW face the highest risk of adverse outcomes. The World Health Organization (WHO) estimates that over 15 million infants are born prematurely each year, with around 1 million succumbing to complications related to premature birth. Notably, more than 60% of these preterm births occur in South Asia and Africa, with low-income countries experiencing a preterm birth rate of approximately 12%, compared to 9% in higher-income nations. In India alone, there were about 3,519,100 recorded preterm births in 2018. The prevalence of hypothermia among preterm infants is a significant public health concern, as it is a leading cause of neonatal mortality and morbidity. Common factors contributing to premature births include infections, chronic conditions such as hypertension and diabetes, and multiple pregnancies, although in many cases, no specific cause is identified. Consequently, the rising number of preterm births and the associated survival challenges have driven the demand for neonatal care equipment to address complications arising from these births.

Technological advancements and innovations in the 21st century have led to the development of highly efficient tools for infant care, significantly improving the management of preterm infants. Equipment such as infant warmers, incubators, respiratory support devices, phototherapy units, and neonatal monitors are crucial for the critical care and monitoring of these vulnerable patients. Modern double-walled servo-controlled incubators and enhanced mechanical fans provide superior treatment and care compared to earlier models, yielding better outcomes. Additionally, the establishment of specialized pediatric clinics by multi-chain hospitals has improved access to neonatal care. For instance, in 2015, Seattle Children's Hospital launched the Seattle Children's South Clinic to enhance access to pediatric services in Pierce and South King counties. The increase in neonatal intensive care units within community hospitals and specialized clinics has further fueled the demand for neonatal treatment equipment, presenting significant growth opportunities for the neonatal care equipment market.

Recent developments in neonatal care equipment include:

• In May 2022, Medtronic received FDA clearance for the Nellcor OxySoft SpO2 sensor, enabling clinicians to make informed decisions for critical care patients more swiftly.


• In April 2021, BD announced a US$1 million donation over five years to UNICEF USA to support initiatives aimed at eliminating Maternal and Neonatal Tetanus (MNT) in at-risk countries.


• In February 2020, Masimo received FDA clearance for enhanced oxygen saturation accuracy specifications for its Neonatal RD SET Pulse Oximetry Sensors, improving care for neonatal, infant, and pediatric patients.


• In January 2020, Nihon Kohden Corporation launched the NKV-550 Series Ventilator System, designed to meet the critical care needs of patients across all age groups.

The overall healthcare costs in North America have surged dramatically, with the US health system incurring direct costs of US$ 5.3 billion in 2020 alone. The healthcare sector contributed an additional US$ 60 billion to the overall annual costs in the country. In 2020, over 40% of the North American population canceled medical appointments, and 13% reported needing care but did not receive it. The COVID-19 pandemic significantly altered economic conditions and social behaviors, leading to a ~40% decrease in emergency department visits in many cities. Outpatient appointments and elective procedures were often postponed or transitioned to telemedicine.

Premature infants and those with medical conditions requiring extended hospitalization are particularly vulnerable to hospital-acquired infections, which negatively impacted the adoption of neonatal care equipment during the COVID-19 pandemic. Additionally, the economic downturn led to increased unemployment rates, affecting disposable incomes and health insurance coverage, which in turn is expected to hinder the growth of the neonatal care equipment market.

The global neonatal care equipment market is categorized by product types, including infant warmers, neonatal diagnostic imaging devices, neonatal respiratory care devices, neonatal monitoring devices, neonatal incubators, neonatal phototherapy equipment, and others. In 2021, the neonatal respiratory care devices segment held the largest market share, driven by the rising incidence of respiratory distress syndrome among newborns.

Based on end users, the market is segmented into hospitals, pediatric and neonatal clinics, and nursing homes, with hospitals expected to dominate the market in 2021.

Key secondary sources referenced in the preparation of this report include the World Health Organization (WHO), National Healthcare Service (NHS), Centers for Disease Control and Prevention (CDC), Canadian Partnership Against Cancer (CPAC), European Foundation for the Care of Newborn Infants (EFCNI), United Nations International Children's Fund (UNICEF), Food and Drug Administration (FDA), Associate of Science in Nursing (ASN), and National Institute of Health Research (NIHR).