Brazilian, Indian, and Chinese Markets for Reconstructive Joint Implants 2011

Introduction:

The market for reconstructive implants in Brazil, India, and China (BIC) has exhibited steady double-digit growth for many years. Revenue increases in this market will continue to be driven by significant procedural increases in all three countries. Procedure volumes will in turn be driven by a number of factors, including the expanding elderly and obese populations that will spur a rise in osteoarthritis cases, economic growth, physician training in joint reconstruction, and medical tourism. Although the economies are rapidly developing in the BIC region, poverty is still widespread; therefore, some people who lack insurance and pay out-of-pocket for medical care will not be able to afford treatment. Because universal health care coverage exists in Brazil and is under development in China, this trend will be most prominent in India. Furthermore, conservative treatment options, such as yoga and ayurvedic treatments, will continue to be used in many cases before more invasive reconstructive implant surgery is considered. Improving health care infrastructure and the expanding private health care sector will, however, offset some of these limiting factors, allowing for a strong increase in reconstructive joint implant procedures. Unit sales growth will offset pricing pressures caused by sales of low-cost domestic implants and price competition, enabling revenues in the BIC reconstructive joint implant market to expand steadily through 2015.

Questions Answered in This Report:

• Procedure volume growth is significantly higher in the BIC countries compared to the US or Europe and is the primary factor in BIC reconstructive joint implant market expansion. How does the rate of procedure volume growth compare between the BIC countries? Is the pace of growth expected to remain constant over time? What factors are leading to this rapid growth? Which market segments are most impacted by these factors?
• The average selling price (ASP) of hip, knee, and shoulder implants will remain relatively low in the BIC countries from 2009 to 2015. To what extent will economic growth and broadening insurance coverage impact device ASPs? What impact will innovation and the entrance of premium-priced technologies have on the BIC reconstructive hip, knee, and shoulder implant markets as a whole?
• As of 2010, large global orthopedic device manufacturers garnered the majority of BIC reconstructive joint implant revenues; however, domestic manufacturers are increasingly penetrating the market. What strategies are large global orthopedic device manufacturers employing to gain a deeper foothold in the BIC reconstructive joint implant markets? What impact will the increasing presence of domestic manufacturers have on BIC reconstructive joint implant ASPs?