GlobalData released an analysis of the orthopedic power tools market.
Here are 10 key trends for the orthopedic power tools market:
1. The orthopedic power tool adoption rates vary by region due to price sensitivity. The global adoption is driven by the orthopedic industry's continued innovation in cordless battery-powered systems and a better understanding of the corded system's downsides.
2. The use of pneumatic-powered tools has declined in the past decade as surgeons prefer to adopt premium-priced electric and battery powered systems.
3. In developing countries, electric and pneumatic-powered tools are highly valued equipment for orthopedic surgeons and the equipment should continue to remain important as these countries cannot bear the substantial cost for capital equipment upgrades.
4. A slow shift to battery-powered systems is still expected in the merging economies as the players introduce new-generation systems in the coming years and invest heavily in promotion.
5. Industry consolidation and intense competition in the orthopedic power tools market will cause more companies to increase their research efforts to differentiate their products from lower-end competitors.
6. The major players will shift their focus from capital equipment to marketing efforts for high-margin consumables. By implementing a consumables-based recurring-revenue business model, companies can establish a stable revenue stream while driving hand piece or capital equipment placement via capital sales and/or rentals.
7. It will be equally as important for companies to seek new revenue streams in the future as delays in capital equipment purchases are expected to weaken revenue growth.
8. Hospital C-level executives are taking increased involvement in the premium system procurement process and will need to assess whether the procedure mix and payer mix can support purchasing new orthopedic power tools.
9. Large orthopedic vendors are leveraging their market position to offer bundle discounts for hospital orthopedic departments that purchase implants, instruments and capital equipment instead of discounting power tool prices.
10. Single-use power tools are beginning to attract media attention and hospitals could use them in marketing campaigns. However, despite aggressive marketing efforts from the companies, the key opinion leaders still feel the cost-effectiveness must be justified before considering purchase.
More Articles on Orthopedic Devices:
Covidien Shareholders Sue to Stop Medtronic Acquisition
Smith & Nephew Drops Auditors Ernst & Young for KPMG
Titan Spine Receives FDA Clearance for Endoskeleton TL System