Ethylene Oxide (EtO) Sterilization Services Market Size, Share & Segmentation By End-use (Hospitals, Outpatient Facilities, Research & Manufacturing), By Region, and Global Forecast 2024-2032

Ethylene Oxide (EtO) Sterilization Services Market :

Ethylene Oxide (EtO) Sterilization Services Market was valued at USD 4.7 billion in 2023 and is expected to reach USD 10.55 billion by 2032, growing at a CAGR of 10.52% over the forecast period 2024-2032.

The Ethylene Oxide (EtO) Sterilization Services Market Report summarizes the key statistics and emerging trends impacting the growth of the systems. It includes market size and growth forecasts, spurred by demand for sterilized medical devices and pharmaceuticals. The report highlights the incidence and prevalence of healthcare-associated infections (HAIs) in 2023, emphasizing the need for advanced sterilization methods. It also studies the volume of sterilized medical devices and pharmaceutical products, along with regulatory compliance trends across regions. Providing a complete perspective of funding channels including government, commercial, and private entities.  These insights help stakeholders navigate evolving industry dynamics effectively. The ethylene oxide sterilization services market is driven by stringent regulations and increasing demand for sterilized medical devices. The U.S. FDA and EU MDR mandate robust protocols to mitigate healthcare-associated infections (HAIs) with sterilization, identifying the importance of effective sterilization methods.

Market Dynamics

Drivers

• Increasing demand for sterilized medical devices and supplies due to heightened healthcare standards.

One of the major factors contributing to the Ethylene Oxide (EtO) Sterilization Services Market is the growing need for sterilized medical devices and supplies. This increase is mainly driven by the growing incidence of hospital-acquired infections (HAIs), which affect more than 3.5 million people every year in the European Union and the European Economic Area and cause around 90,000 deaths per year. Worrying statistics highlight the crucial importance of strict infection control protocols, such as proper sterilization processes of different medical equipment. This demand is compounded by the growth of the healthcare sector. This growth is indicative of a growing focus on sterilization processes and ensuring patient safety and adherence to regulatory norms.

Additionally, an increase in surgical procedures such as minimally invasive, orthopedic, and cosmetic surgeries will demand the use of sterilized surgical instruments, including scalpels, bone chisels, and extraction forceps. All of this equipment needs to be sterilized after use to avoid infections, creating a demand for effective sterilization services. There are also advances in medical devices. Companies such as Intuitive Surgical have seen their year-on-year rate of procedures using their da Vinci surgical robots grow by 18%, in what appears to signal an increased use of complex medical devices that call for rigorous sterilization. the increased awareness of disinfection and sterilization among health workers and the general public. This trend signifies a worldwide acknowledgment of the need for sterilization in all healthcare facilities.

Restraints:

• Health and environmental concerns associated with EtO emissions, leading to regulatory scrutiny and legal challenges.

Ethylene oxide (EtO) is a strong carcinogenic gas that is used for extensive sterilization processes of medical instruments and spices. Its emissions are also a major health risk, especially for people who live near sterilization facilities. In March 2024, the U.S. Environmental Protection Agency (EPA) issued mandatory regulations to limit EtO emissions by more than 90% to decrease the related cancer risk. Approximately 14 million people in the United States and Puerto Rico live within five miles of commercial sterilizers, and many of the facilities are located in low-income and majority-minority neighborhoods, further worsening existing health disparities. These regulatory measures reflect the increasing concern surrounding the environmental and health effects of EtO and the need for the industry to embrace safer practices and technologies.

Opportunities:

• Development of advanced sterilization technologies that minimize environmental impact and meet regulatory standards.

The Ethylene Oxide (EtO) sterilization industry is undergoing significant transformations due to environmental and health concerns associated with EtO emissions. In March 2024, the U.S. Environmental Protection Agency (EPA) issued final amendments to the National Emission Standards for Hazardous Air Pollutants (NESHAP) for commercial sterilizers. Those amendments require state-of-the-art air pollution controls to be instituted, reducing EtO emissions by more than 90% at nearly 90 facilities across the country. This change to FDA regulation is a significant opportunity for enabling and deploying technologically advanced sterilization modalities, which are sustainable and have greater efficacy. For example, the EPA’s stringent measures are projected to reduce lifetime cancer risks from EtO emissions down to or below the benchmark of 100 cases for every 1 million people who are exposed. The number of people estimated to have an increased risk of greater than one in one million is also expected to drop by about 92%.

This regulation enforcement requires sterilization plants to invest in innovative technologies that can fulfill these emission reductions. Such a scenario not only promotes technological innovation but also stimulates cooperation between industry partners to create solutions that meet high environmental standards while maintaining the effectiveness of the sterilization process. As a result, there needs to be more existing technologies that can quickly and effectively sterilize medical equipment and instruments without hampering environmental integrity, compatible with international sustainability goals and undermining public health concerns.

Challenges:

• Managing operational risks and liabilities, as evidenced by Cosmed Group Inc.'s bankruptcy filing following lawsuits over EtO emissions.

The Ethylene Oxide (EtO) sterilization industry now faces considerable operational challenges, as immediate regulatory actions and legal liability related to EtO emissions continue to increase. EtO is a powerful carcinogenic gas commonly used to sterilize medical equipment and spices. However, its emissions have been associated with a higher risk of cancer, especially for people who live near sterilization facilities. On March 4, 2024, the U.S. Environmental Protection Agency (EPA) issued a final rule imposing stringent amendments to the National Emission Standards for Hazardous Air Pollutants for commercial sterilization facilities. The new rules require advanced pollution controls that cut EtO by more than 90% The EPA says these measures would drastically reduce lifetime cancer risks for about 14 million people living within five miles of such facilities. The cost of these regulatory requirements can be significant. In the wake of the strengthened standards, facilities now face an increased financial burden to make upgrades. As if penalties weren't enough, violations might also lead to forced downtime, increasing already widespread economic strains. In addition to regulatory pressure, the industry has to contend with mounting legal challenges.

Segmentation Analysis

By End-use

In 2023, the hospital segment dominated the market with a revenue share of 35%. It is mainly attributed to the huge amount of surgical instruments and medical devices that require sterilization for infection control. Ethylene oxide sterilization is widely used by hospitals because it is effective at killing microorganisms on delicate instruments needed to keep patients safe and prevent healthcare-associated infections (HAIs). Hospital dependence on ethylene oxide sterilization is aggravated by regulatory requirements. Case in point, the U.S. Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) stress proper sterilization practices in healthcare settings. Ethylene oxide is especially highly prized in conditions where heat-sensitive materials would otherwise be damaged upon sterilization and are thus critical to hospital environments saddled with a range of medical device types used in settings where proper sanitization must be strictly maintained.

Conversely, the research & manufacturing segment is expected to register a prominent CAGR over the forecast period. This growth is attributed to the increasing emphasis on quality assurance and compliance with stringent sterilization standards enforced by regulatory authorities. To preserve these, medical device manufacturers and research institutions are being heavily outsourced to sterilization services in an attempt to carry it out in line with operational efficiency and regulatory requirements. Outsourcing enables these organizations to connect with specialized facilities and expertise to ensure the top standards of product sterility are met without needing extensive capital to invest in their sterilization capabilities. In addition, for the research & manufacturing segment, technological developments and the introduction of more efficient and safer ethylene oxide sterilization processes also provide growth opportunities. These technologies include enhanced chamber designs, more precise control of ethylene oxide concentrations, and improved emission control systems, all of which reduce the environmental and health risks the use of ethylene oxide poses. Since regulators are constantly refining and evolving standards concerning sterilization, manufacturers are expected to increasingly demand specialized ethylene oxide sterilization services to ensure compliance with standardized practices such as ISO 11135 concerning ethylene oxide sterilization.

Regional Analysis

North America held the largest share 34% of the ethylene oxide sterilization services market in 2023, owing to the established healthcare infrastructure and higher adoption of advanced sterilization technologies. The region's strict regulatory framework, most notably in the United States, is another reason for its market dominance. The U.S. Environmental Protection Agency (EPA) and Food and Drug Administration (FDA) are intimately involved in this process, establishing parameters for its use and monitoring facilities to ensure they operate within those limits to protect public safety. North America's leadership in this sector is bolstered by the presence of major healthcare companies and a strong network of sterilization service providers. These providers provide a variety of services designed to address the unique needs of hospitals, manufacturers, and research institutions while ensuring compliance with regulatory standards and operational efficiency. It leads to the adoption of ethylene oxide along with advanced sterilization techniques, as the Europe region is highly driven concerning research & development in healthcare technology.

On the other hand, Asia Pacific is projected to grow at the fastest CAGRs owing to the expansion of healthcare facilities and increase in demand for medical devices in rapidly developing nations including China and India. As per government data, rapid healthcare infrastructure development in the Asia Pacific region is also likely to surge the demand for ethylene oxide sterilization services. Other factors driving this growth include rising awareness of infection prevention and control along with demand for high-quality medical devices that comply with international standards. The Asia Pacific region also held a notable market share in 2023, as the region is spending more on healthcare, with rising awareness of the need for sterilization to prevent HAIs. This growth is driven by the fact that governments in this region are heavily investing in its healthcare infrastructure, such as hospitals and manufacturing facilities for medical devices, creating demand for ethylene oxide sterilization services. Moreover, growing international collaborations and investment rates in the region are further strengthening the advanced sterilization technologies capability, making the Asia Pacific a prominent region in the ethylene oxide sterilization services market.

Key Players

Key Service Providers/Manufacturers

• Steris Corporation (STERIS EO Sterilization Services, AMSCO 400 Series EO Sterilizers)

• 3M Health Care (3M Steri-Vac EO Sterilizer/Aerator GS Series, 3M Attest Rapid Readout Biological Indicators)

• Johnson & Johnson (ASP) (STERRAD 100NX System, STERRAD NX System)

• Getinge Group (Getinge GEE Ethylene Oxide Sterilizers, Getinge 433/533HC-E Series)

• Tuttnauer (EO 4 Ethylene Oxide Sterilizer, PlazMax Sterilizers)

• Andersen Products (Andersen EO Series Sterilizers, Anprolene Sterilization Systems)

• Cosmed Group (EO Sterilization Services, Contract Sterilization Services)

• Sterigenics International (EO Sterilization Services, Gamma Irradiation Services)

• Noxilizer, Inc. (NOX FLEX Sterilization System, RTS 360 Industrial Sterilizer)

• Medline Industries (EO Sterilization Services, ReNewal Reprocessing Program)

• Hangzhou Bocon Mechanical and Electrical Co., Ltd. (GE Series EO Sterilizers, LE Series EO Sterilizers)

• HNBOCON

• Kaustubh Enterprises (Rujikon) (Rujikon KB Series EO Sterilizers, Rujikon MVB Series Fully Automatic EO Sterilizers)

• RUJIKON

• Cistron Systems (EO-matic Sterilizers, Steam cum EO Sterilizers)

• CISTRON SYSTEMS

• Aurora Instruments (Aurora EO Series Sterilizers, Aurora Gas Sterilization Systems)

• Midwest Sterilization Corporation (EO Sterilization Services, Contract Sterilization Solutions)

• Advanced Sterilization Products (ASP) (STERRAD 100NX System, STERRAD NX System)

• Belimed AG (Stericool EO Sterilizers, WD 200 Series Washer-Disinfectors)

• Matachana Group (100% EO Sterilizers, S1000 Series Steam Sterilizers)

• Shinva Medical Instrument Co., Ltd. (XG1.U Series EO Sterilizers, XG2.C Series EO Sterilizers)

• Tuttnauer (PlazMax Sterilizers, EO Series Sterilizers)

Recent Developments

• In January 2025, The EPA released an interim decision for ethylene oxide, focusing on reducing occupational exposure limits and implementing a maximum EtO concentration limit of 600 mg/L for new sterilization cycles by 2035. This decision aims to minimize risks associated with EtO use while ensuring compliance with FDA requirements for sterility assurance.

• In August 2024, Sterigenics U.S., LLC settled allegations with the South Coast Air Quality Management District for violating its permits and regulations, demonstrating that companies in the ethylene oxide sterilization industry are under regulatory scrutiny.

• In January 2024, ClorDiSys Solutions, Inc. was acquired by Allentown, LLC, a portfolio business of Aterian Investment Partners, a testament to the consolidation and strategic acquisitions taking place in the ethylene oxide sterilization services space.