The global cord blood banking service market is fragmented with a dispersed presence of public and private banks across countries. The industry is regulated domestically and internationally and therefore restrictions on banking cord blood, privately are giving extra competitive advantage to public banks in countries such as France, Italy and UAE. Factors that are enhancing the competitive rivalry among public and private cord banks include, strong R&D setup, financial support, and dominant competitive strategies, states a new report by Transparency Market Research (TMR). Even though it is difficult for new players to survive in the market, private banks are entering in the market, encouraged by government initiative for expansion of cord blood banking network in the country. Leading players in the market are Cord Blood America, Inc, Cord Blood Registry Systems, Inc., Cryo-Cell International, Inc., NeoStem, Inc., and ViaCord, Inc.
The threat of substitutes is expected to be moderate owing to the availability of alternatives such as bone marrow transplant. However, they have disadvantages associated with the extraction of stem cells from bone marrow. According to the report, the global cord blood banking service market will value at US$26.81 bn by 2019. North America is expected to lead in both private cord blood banking market as well as public cord blood services market, reaching a value of US$13.14 bn and US$6.58 bn by 2019. The Asia Pacific segment is expected to expand at a 9.1% CAGR from 2013 to 2019 in the cord blood banking services market. Europe is anticipated to expand at a 7.1% CAGR between 2013 and 2019 in the public cord blood banking market.
Advancements in Technology to Boost Adoption of Cord Blood Banking Service
Technology development is expected to increase the number of hematopoietic stem cells in a sample, which will allow adequate sample availability for adult treatment. This is expected to give the market a push. Moreover, advancements in technology is expected to enable the smooth processing of cord blood and this is expected to reduce the cost and foster more facilities for preservation of cord blood. The rising awareness among parents regarding the process and benefits of cord blood banking is expected to drive the market in the coming years. In the coming years as the cord blood banking processes will become simpler, offering better services at economic prices, customers will increase the acceptance for this service.
Lack of Cord Blood Units to Hamper Market
The scarcity of compatible cord blood units is posing a challenge to the market. Another concern is the adoption rates of this service is low in developing and under developing nations as the cost of private banking is too high. There are various accreditation organizations, which are operating worldwide for the maintenance of standard and quality of cord blood banking. For global operations accreditation is essential but, these activities incur huge costs and documentation which can increase the price. Additionally, it restricts new players having low financial capacities from entering the market. It is essential that cord blood banking facilities cater and satisfy the requirements and standards mentioned by regulatory authorities of their respective regions. Maintenance of the storage facilities and processing of samples incur high costs, which again limits new players with limited financials, to enter the market.
However, cord blood stem cells play an important role in the treatment of immune system relating to genetic disease, cancer, and blood disorders. Increase in research for breakthrough therapies by making use of cord blood stem cells is expected to create huge opportunities in the market.
This information is based on the findings of a report published by Transparency Market Research titled “Cord Blood Banking Services Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019.”
The global cord blood banking services market is segmented as follows:
- Based on Type of Service Vendor
- Private cord blood banks
- Public cord blood banks
- Based on Geography
- North America
- United States
- New Zealand
- Rest of the World
- Middle Eastern Countries
- North America
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