BURLINGTON, Mass., June 5, 2014 /PRNewswire/ -- Decision Resources Group finds that the market for spinal implants and bone graft substitutes (BGS) in Australia, South Korea, China and India will more than double through 2022 to a value of nearly $7 billion. The markets in each country vary significantly, with the less developed Indian and Chinese markets undergoing rapid expansion and the more mature Australian and South Korean markets exhibiting more modest growth.
Other key findings from Decision Resources Group's coverage of the Asia Pacific spinal implant and BGS market:
- Fusion versus nonfusion implants: Spinal fusion implants will continue to account for the majority of spinal implant procedures in all Asia Pacific countries because the high price of nonfusion technologies paired with their relatively recent introduction will continue to make them unattainable to a large proportion of the population. Furthermore, in South Korea and Australia, government bodies will continue to heavily scrutinize reimbursement for spinal nonfusion technologies, reducing it in some cases.
- Declining prices: Through 2022, spinal implant and BGS prices will decline due to price competition as well as heavy government regulation and reimbursement cuts. Price declines will be most notable in South Korea (where reimbursement cuts have recently taken place) and in India (where local manufacturers drive competitive pricing).
- Synthetic BGS: Over the forecast period, synthetics will be the most used BGS material in the Asia Pacific market due to their proven track record and relatively low pricing. The primary exception to this trend will be South Korea, where patients tend to choose less expensive nonproprietary allografts, while hospitals are motivated to promote the higher priced, better reimbursed demineralized bone matrices in order to increase revenues.
Comments from Decision Resources Group Analyst Hamza Sajjad:
- "Companies looking to enter the Asia Pacific spinal implant and BGS market need to be conscious of different regulatory bodies and cultural preferences in different countries. As an example, Chinese physicians rarely use xenografts or allografts because of a cultural aversion to using human or animal tissue, while Australia does not allow for the use of xenografts. As a result, the Asia Pacific market can be complex to navigate as a whole, especially for smaller competitors."
Comments from Decision Resources Group Analyst Susan Weng:
- "Multinational corporations (MNCs) face strong competition from low-cost domestic manufacturers in China, India and South Korea. However, some markets have proven more immune to domestic competition; for example, the complex nature of spinal nonfusion technologies and growth factors results in them being largely only offered by MNCs."
- Hamza Sajjad and Susan Weng have written Medtech 360 reports on this subject entitled Asia Pacific Markets for Spinal Implants and Bone Graft Substitutes 2014 and Chinese Markets for Spinal Implants and Bone Graft Substitutes 2014, respectively.
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