Market intelligence for sustaining oxygen generation plant investments

Oxygen generation plants are one of numerous ways oxygen can be produced and are the primary source of bulk oxygen for many health facilities across low- and middle-income countries. However, there are critical gaps in the oxygen generation plant market and operational challenges that put existing and newly procured plants at risk of falling into disrepair. Between 2021 and 2023, PATH undertook a series of analyses to better characterize the oxygen generation plant market and its ownership costs by:

  • Estimating the total cost of ownership, particularly related to operating costs, of oxygen generation plants.
  • Evaluating the feasibility of standardizing oxygen generation plant sizes.
  • Estimating the size of the oxygen generation plant market.

These analyses demonstrate that operating expenditure comprises the majority of the total cost of ownership and should be a core component of oxygen generation plant budgets. However, at present, many health facilities across LMIC have limited resources to sustainably operate oxygen generation plants. This indicates that, although the oxygen generation plant market can expand to immediately supply approximately 200 additional facilities, there is a strong need to invest in oxygen generation plant operating capacity (e.g., enhancing understanding of operating best practices, increasing and retaining skilled workforce, etc.) before purchasing any new plants. Once adequate budgets are allocated and sufficient operating capacity is developed, new oxygen generation plant procurements can be standardized to three or four sizes without compromising the ability to meet the majority of estimated oxygen needs. By reducing the number of plant sizes, additional efficiency gains can be realized for both manufacturers and buyers—such as reduced lead times, optimized production schedules, price discounts, and simplified plant management.

Author(s): PATH

Publication date: October 2023

Available materials

    1. Market intelligence for sustaining oxygen generation plant investments (full series) 660.2 KB PDF
    2. Market intelligence for sustaining oxygen generation plant investments: Market dynamics of oxygen generation plants 287.3 KB PDF
    3. Market intelligence for sustaining oxygen generation plant investments: Total cost of ownership, including operational costs, for oxygen generation plants 323.1 KB PDF
    4. Market intelligence for sustaining oxygen generation plant investments: Standardizing size options for oxygen generation plants 345.2 KB PDF
    5. Market intelligence for sustaining oxygen generation plant investments: Estimating the size of the oxygen generation plant market 341.5 KB PDF