North American PERS market to hit $3 billion in 2020
MADHAPUR, India—The North American PERS market is growing at a 4.2 percent CAGR according to a recent IndustryARC report, and it will rise from $2.2 billion in 2014 to around $3 billion in 2020.
“North America is the largest market for PERS,” and the trend will continue to 2020, Arthi Kommu, senior strategy consultant for IndustryARC, told Security Systems News. Today North America accounts for 40 percent of the global PERS market, she said.
The current global market value for PERS is around $5.7 billion, she said. The report expects the global PERS market to grow at a 5.83 percent CAGR, hitting $8.4 billion by 2020.
The growing elderly population is the most important factor, Kommu said. The cost of hospital care is also rising, making PERS a more attractive option for seniors who want to stay independent.
The report divides PERS into three separate technologies: standard landline-based offerings, mobile PERS and standalone devices. Standalone products are primarily fall detection devices, Kommu said. “The North American market is dominated by landline-based [devices], with a revenue of 1.8 billion, which is growing at a CAGR of 3.3 percent,” she said.
MPERS solutions are a key technological trend, according to Kommu. Valued at $455 million in 2014, the mPERS market in North America is rising at a CAGR of 4 percent, she said.
The proliferation of smartphones plays a role in the rise of mPERS. More smartphones opens the market for more mPERS apps, Kummo said. “That [trend] is only in the U.S. ... The usage of smartphones is limited in other countries, but in the U.S. the penetration is high.”
False alarms are a problem with PERS devices, Kummo said, and PERS companies could see fines for false alarms.
Negative perceptions about PERS devices, such as a user being seen as “weak or fragile,” could inhibit market growth, said Kommu. There are also problems with reimbursement in the U.S. healthcare system.
Phillips’ Lifeline, Life Alert and Bay Alarm Medical are key vendors for the PERS market.
The IndustryARC report, released in mid-July, covers the state of the global medical alert market; aside from PERS it also covers the growth of the nurse call systems market. The global nurse call segment was valued at $8.9 billion in 2014. With a 6.62 percent CAGR, nurse call systems will grow to $13.2 billion by 2020.