Equipment for the Disabled Sep 2001

Executive Summary

In 2000, the total estimated value of the UK market for aids and equipment for the disabled in 2000 was £1.66bn. This shows an increase of 27.7% since 1996. The market's size is growing as a result of the rising number of people classified as disabled. This is due principally to demographic changes. As the elderly live longer, so the number of disabled people increases, and this creates growing demands for better care and equipment. The higher cost of the sophisticated equipment that is now available also contributes to the growth of the market.

`The disabled' include people who are permanently impaired, mentally or physically, from birth, those who have become disabled as a result of an accident or due to an illness from which there is no prospect of recovery, and those undergoing the natural ageing process. The Department of Health's classification of the disabled has not changed for many decades. Between 6 and 8 million people are now estimated to have some sort of permanent impairment that might qualify them as disabled.

There are many niche markets in this industry, supplied by a large number of companies. A very fragmented manufacturing and supply industry exists because of the diversity of markets. Many of the companies that specialise in aids and equipment for the disabled are relatively small. The larger companies are major suppliers to the NHS. It is these large companies that have the research and development departments essential for improvements to existing equipment, and the launch of new models.

There are relatively few large British-owned companies operating in this market. In particular, US corporations are able to utilise the equipment and experience gained in their larger home market to supply similar equipment required in the British market. Some continental European countries have also gained market share for their specialised products in the UK, either as local manufacturers or as importers. There are few other suppliers outside the US or continental Europe that are major suppliers to the UK market. Taiwan, as a significant supplier of wheelchairs to the UK, is one of the exceptions.

The dominance of the NHS as the principal buyer of aids and equipment for the disabled is likely to be strengthened by the Labour Government's promise to increase expenditure on all NHS services before the general election in 2005/6. Changes are already taking place to make the lives of the disabled more comfortable. The Disability Rights Commission has new powers for enforcing the Disability Discrimination Act 1995. Its new code of practice is expected to be fully operational by October 2004.

Key Note forecasts that there will be a surge in NHS expenditure on aids and equipment for the disabled if the targets are fulfilled. However, a more rigorous test is to be introduced to determine whether people are genuinely disabled. Tests will now be taken every few years, instead of a single test determining disability for life. This may contain some of the costs, which will inevitably rise as a result of the steady increase in the number of elderly and mentally and physically disabled people.

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