Hospital-Grade Surge Protectors (Power Strips)

Part
01
of three
Part
01

Hospital-Grade Surge Protectors (Power Strips) - U.S. Market Size

The dominant companies in the surge protector industry are Phoenix Contact GmbH & Co. KG, Raycap GmbH, Crompton Greaves Limited, General Electric Company, Leviton Manufacturing Co., Tripp Lite, Schneider Electric SE, Pentair Technical Solutions, Emerson Electric Co. and Eaton Corporation PLC. Across the world, the size of the global surge protector market is expected to reach $3.39 billion by 2025. However, there is no information on the market size of hospital-grade surge protectors (power strips) in the US. Below is a methodology that we used in an attempt to find this information.

METHODOLOGY

The first strategy was to check for precompiled reports on the market size for medical or hospital-grade surge protectors in the US. In this case, we checked for information in credible platforms such as PR News Wire, Market Researcher, Statista, Research and Markets, Allied Market Research and Grand View Research. These resources provided us with information in the global market size of the entire surge protector industry, the types of segments, leading companies in the sector and the CAGR of the sector until 2025. However, there is no information on the market size of hospital-grade surge protectors in the US, and the only resource that seemed to have details on the surge protectors use by segment was locked behind a paywall.

The second strategy was to check for information from medical and technology sources. Some of these include Healthcare Business Tech, Kaiser Health News and US News. These resources provided details on trends in the sector, technological advances in the industry and new releases. However, there was no data on the market size of surge protectors in the US.

We then shifted our search to focus on the North America region whereby we wanted to identify the total market size of surge protectors and then triangulate the percentage that can be allocated to medical surge protectors. However, we could only get the total market size of surge protectors in the US, with no specific focus on medical usage. The only information on the various types of usage is a graph which indicates that medical usage is lower than other uses, including commercial and industrial use.

Our final strategy was to identify the main companies in the sector from various reports such as Research and Markets, Allied Market Research and Grand View Research. We then looked through the annual reports of these companies to find the revenue generated in the US. However, most of the companies are private companies, and therefore their annual reports were not readily available. In the case of some companies, such as Leviton, Siemens and Tripp Lite, the only financial information presented was the total revenue without any differentiation of the sales by region. As such, this strategy was also not useful in providing us with the required information.

market size of surge protectors for medical use

A report by Grand View Research states that the global surge protector market size will grow to $3.39 billion in 2025. Please note that the full version of the "Surge Protection Devices (SPD) Market Analysis By Product Type" report is available for purchase at the following pricing: Single User ($4,950), Multi User/2-5 users ($5,950), and Enterprise Access ($7,950).

The industry is divided into various segments that include residential, telecom, medical, data center, industrial, commercial, end users and transportation. The largest segment is industrial use, with a market size of $657.2 million in 2016. On the other hand, the medical use of surge protectors was low compared to commercial and industrial usage. However, the healthcare segment is expected to grow in the future.

North America represents 39.5% of the total market size of the industry, with a CAGR of 5.8% between 2017 and 2025. The North America region refers to Canada and the US, which had a market size of $778.3 million in 2016. Some of the states that are the biggest consumers in the North Region include Louisiana, Mississippi, Florida and Alabama.

The dominant companies in the surge protector market are Phoenix Contact GmbH & Co. KG, Raycap GmbH, Crompton Greaves Limited, General Electric Company, Leviton Manufacturing Co., Tripp Lite, Schneider Electric SE, Pentair Technical Solutions, Emerson Electric Co. and Eaton Corporation PLC.

A report by Allied Market Research states that the global size of the surge protector market is expected to reach $2,127 million in 2015. The market has a CAGR of 5.7% between 2016 and 2022 and is expected to reach $3,167 million in 2022.

Similarly, the report states that the leading companies in the sector include Schneider Electric SE, Phoenix Contact GmbH & Co. KG, Leviton Manufacturing Co., Tripp Lite, Pentair Technical Solutions, General Electric Company, Emerson Electric Co., Crompton Greaves Limited, Raycap GmbH, and Eaton Corporation PLC.

According to Research and Markets, the market size of the surge protector market in 2017 was $2.06 billion. Based on the report, some of the leading companies in the sector includes ABB, Ltd., Advanced Protection Technologies, Citel, Littelfuse, Belkin International, Hubbell Incorporated, Legrand Sa, Eaton Corporation, Emerson Electric Co., General Electric Company, REV Ritter GmbH, ISG Global, Koninklijke Philips N.V., Raycap Corporation, Leviton Manufacturing Company, Mersen Electrical Power, MCG Surge Protection, MVC-Maxivolt, Panamax, Pentair Electrical & Fastening Solutions, Phoenix Contact GmbH, Schneider Electric Se, Tripp Lite and Siemens AG.

Part
02
of three
Part
02

Hospital-Grade Surge Protectors (Power Strips) - YOY Growth Trends

The estimated US market size for surge protectors was $955.1 million in 2017. By 2025, the market is expected to reach $1.467.3 billion with a CAGR of 5.5%. Among the industry usage of surge protectors, the medical sector was ranked 5th out of eight industries including the industrial, commercial, residential, data centers, and others.

Unfortunately, an in-depth search through the public domain did not provide any direct information on the use of hospital-grade surge protectors (power strips) in the U.S. increased or decreased over the past three years (2015-2018), and is use expected to increase or decrease over the next three years (2019-2022). The reason for the limited availability of information is due to the fact that surge protectors/power strips are not largely used in medical facilities, in fact, of the eight sectors mentioned as industrial, commercial and residential are the majority of end-users of this product and medical sector has been ranked 5th in terms of usage.

METHODOLOGY

We began our research by thoroughly reviewing the industry and finding industry associations related to hospital-grade surge protectors (power strips) in the US to find the trends in the usage of these products in medical and healthcare facilities. We looked through sources such as Grand View Research, Technavio, Verified Market Research, Electric Power Supply Association, and National Electrical Manufacturers Association. These industry associations did not provide the required industry trends within the medical sector. The information found in this search was only pertaining to resources, guidelines, and directory. However, through these reports, we were able to find the market size of surge protectors. Unfortunately, the available information did not specify if the revenue came specifically from hospital-grade surge protectors. Also, it did not provide the breakdown of industries where these products are mostly used. Although the full report (Verified Market Research) contains the required information, it was locked behind a paywall. While the Grand View Research report had the available information for surge protector usage breakdown as per the industry application including the medical industry, the report encompassed whole North American region and not specific to the US only. Additionally, the report only provided the graphical view and no quantitative data was available to see publicly to determine the trends. Nevertheless, it provided useful insights related to the growth in the usage of surge protectors.
Next, we looked through the companies of key players/major vendors obtained from the Verified Market Research report such as Tripp Lite, Leviton Manufacturing, Littelfuse, and similar companies. We then tried to find out the annual reports to get these companies' revenue for the last three years and the projection report that commonly included in annual reports. This would be useful while triangulating the answer using the increase and decrease in YOY revenue in determining growth. However, this search did not provide the desired results as most of the companies mentioned above such as Tripp Lite, Levition Manufacturing, and Belkin International are private entities where they are under no obligation to provide their financial reports to the public. Some companies such as Littelfuse are while public corporation and has their annual reports publicly available, they did not include the required information such as industry breakdown of revenues or any percentage of which industries they have generated most of their income.
Finally, we broadened the research criteria and included hospital and healthcare industry information related to the use of surge protectors/power strips by these facilities. We hoped to find the growth trend in the usage of these products by hospital and healthcare facilities. For this, we looked for regulations, provisions, and other building code policies to see if surge protectors/power strips are a required item in every US healthcare facility which could provide information on the usage trends. Some of the sources we reviewed include the Department of Health and Human Services, American Hospital Association, Centers for Medicare & Medicaid Services, and others. From there, we were able to find that power strips are not an enforced electrical device used in hospitals, these are hospital grade item and in fact, hospitals are very strict for using these products in their facilities. While there were no quantitative data on the use of power strips in these types of facilities, it provided very useful insights in terms of the factors affecting growth for this type of businesses.
The reason for the limited availability of information is due to the fact that surge protectors/power strips are not largely used in medical facilities. This was clear from the fact that out of the eight sectors mentioned including industrial, commercial, and residential are the majority of end-users of this product and the medical sector has been ranked 5th in terms of its usage.

HELPFUL FINDINGS


  • The Grand View Research report shows the surge protector market by application for the North American region. Based on the graph for medical application of surge protectors for 2015 to 2018, the usage trend of surge protectors remained the same.


  • From 2019 to 2022, the use of surge protectors in medical industries increased slightly compared to the last three years. This determines a little change in the usage growth trend of surge protectors in the medical industry.

USAGE OF SURGE PROTECTORS/POWERS STRIP IN the US' HOSPITAL AND HEALTHCARE FACILITIES

A 2014 memorandum circulated by Department of Health and Human Services stated that in 1999 edition of NFPA 99, Health Care Facilities Code, health care facilities are required to install sufficient receptacles in patient care areas to prevent the need of using power strips. However, in 2012, this was changed and they extended the allowance for using power strips in healthcare facilities by removing the provision of "avoiding the use of power strips." However, the minimum requirements for the number of receptacles for facilities have been increased which in essence, limited the need for power strips in the industry. Additionally, in order to use power strips, the memo provided numerous conditions and requirements.

Apart from products meeting the UL and National Electrical Code standards (which means hospital-grade), the memo additionally stated that power strips must be only used for movable patient-care related electrical equipment and must be attached to the equipment. Also, power strips cannot be used for non-patient-care related electrical equipment such as personal electronic devices.

The Ohio Health Care Association stated that the use of power strips is increasing in healthcare facilities due to the reason that more residents use more electrical devices. However, facilities follow the NFPA 99 including compliance with standard precaution. The above regulation limits the need for using surge protectors/power strips that hinders its growth in the use of this item in hospitals and other medical and health care facilities whether they are hospital-grade products. This could be one of the reasons why there is a little change that has been shown in the graph depicting growth for surge protector usage in medical applications mentioned in the Grand View Research report.

Part
03
of three
Part
03

Hospital-Grade Surge Protectors (Power Strips) - Product Purchase Insights

After an exhaustive search through credible sources, we were unable to provide information on how hospitals in the United States go about purchasing hospital-grade surge protectors (power strips). It is possible that the requested information is not available in the public domain. Below we have presented a detailed overview of our research strategy, any assumptions we have made, and the findings from our research.

METHODOLOGY

To determine how hospitals in the United States go about purchasing hospital-grade surge protectors (power strips), we initially searched for relevant case studies on healthcare and surge protectors. However, we could only find a case study from 2001 and another one focused on an African hospital. Next, we explored healthcare websites including ASHE, the Healthcare Financial Management Association, and the Centers for Medicaid & Medicare Services (CMS). Though we were able to locate regulatory information on power strips, as well as resources for maintaining compliance, there was no mention of the purchasing process or those obligated to buy power strips. We then reviewed healthcare management and compliance publications such as Consulting-Specifying Engineer, International Association for Healthcare and Safety, and Strategic Management hoping to find data to help us satisfy this request. Nonetheless, we again found information concerning regulations for outlet systems and electrical equipment instead of the purchasing process.

Afterward, we searched for details on hospital purchases and came across Definitive Healthcare, which contains information on purchasing coalitions. However, the report is behind a paywall and inaccessible without payment. This particular source may provide appropriate information on what hospital groups associated with coalitions have purchased. Additionally, we scrutinized HealthTrust and the Health Care Supply Chain Association for information on purchasing and supplies. Also, we found an article published by HealthLink Dimensions, which stated that several hospitals use groups to make purchasing decisions. Nonetheless, there were no conclusive results on which bodies make the purchasing decisions for power strips.

Finally, we examined power strips supplier sites such as Tripp-Lite and Leviton, where we discovered that the products are extremely regulated concerning what can and cannot be administered in patient settings. Although the supplier sites contained data on the regulations, they did not discuss those authorized with purchasing power strips or if hospitals buy power strips directly. Due to the lack of proper information, we are unable to determine how hospitals in the United States go about purchasing hospital-grade surge protectors (power strips). A probable reason for the absence of data is that hospitals may choose to refrain from publicly disclosing information regarding purchasing decisions.

HELPFUL FINDINGS

REGULATIONS

The Centers for Medicaid & Medicare Services (CMS) regulates all surge protectors (power strips) in healthcare facilities and hospitals. Underwriters Laboratory (UL) has four standards for surge protectors which include:

1) UL 60601-1: An electrical safety standard that is necessary for any medical equipment in the patient care vicinity.

2) UL 1363A: A fundamental safety measure for power strips unified as elements of a broader arrangement where they provide power to devices within a movable assembly that is installed on a pedestal, table, or rack. It is for mobile applications outside and inside the vicinity.

3) UL 1363: A necessary safety rule for power strips capable of standing alone and "are not designed as components of a larger system." It is for administrative areas and lab applications.

4) UL 1449: A surge protector safety measure meant for any units that are utilized "outside of a patient care vicinity." It is for business offices and administrative areas.

UL 60601-1 or UL 1363A power strips containing a green indicator dot are regarded as hospital-grade. Also, waivers might be necessary for the utilization of power strips in healthcare environments. Though the CMS ceased enabling the application of power strips in patient areas in March 2014, the organization later altered this ruling in September of the same year to allow the action if their specifications are satisfied.

PURCHASING

According to Health Link Dimensions, the procurement and finance departments in hospitals may play a significant role in acquiring surge protectors. The compliance department serve an important role in the selection and purchasing decision for surge protectors. While conducting judgments concerning purchases, compliance departments typically utilize tools and data from vendors for compliance. Additionally, some hospitals are associated with purchasing coalitions to save on expenses for essential products.

SUPPLIERS

The company Tripp-Lite serves as a supplier of power strips that are hospital compliant. Meanwhile, Leviton provides a line of power strips for medical use in patient spaces and hospitals.

Sources
Sources

From Part 02
Quotes
  • "According to Verified Market Research, the U.S. Surge Protection Devices Market was valued at USD 955.1 million in 2017 and is projected to reach USD 1,467.3 million by 2025, growing at a CAGR of 5.5% from 2018 to 2025."
Quotes
  • "The 1999 edition of NFPA 99 requires that there be sufficient receptacles located in all “patient care areas” in order to avoid the need for power strips."
  • "By contrast, the 2012 edition of NFPA 99 has extended allowances for use of power strips in “patient care rooms,” which replaces the term “patient care area”. The requirement for there to be sufficient receptacles located in all patient care areas as to avoid the need for power strips has been removed, but the minimum number of receptacles in patient care rooms has been increased. "
  • "Power strips may be used in a patient care vicinity to power rack-, table-, pedestal-, or cartmounted patient care-related electrical equipment assemblies, provided all of the following conditions are met"
  • "Power strips may not be used in a patient care vicinity to power non-patient care-related electrical equipment (e.g., personal electronics)."
Quotes
  • "The use of power strips and multiple plug adaptors is increasing in healthcare facilities as residents are using more and more electrical devices. Most power strips are designed for use for devices that draw low-powered loads equipment such as computers, audio and video equipment, clocks, lighting, etc. "
  • "Electrical Equipment – Power Cords and Extension Cords Power strips in a patient care vicinity are only used for components of movable patient-care-related electrical equipment (PCREE) assembles that have been assembled by qualified personnel and meet the conditions of 10.2.3.6."
  • "We would strongly recommend that there be no power strip within the vicinity of the patient bed for non-PCREE items. "
Quotes
  • "Tripp Lite develops power protection and connectivity solutions for home-based applications, SMBs, data centers, enterprises, governments, medical institutions, audio and video centers, and more. The company’s product line includes UPS Systems, surge suppressors, KVMs, rack enclosure cabinets, cooling solutions, PDUs, cables, inverters, power strips and more."
  • "Tripp Lite has $129.6M in revenue annually."