Market Research Suggests Growth in Extremity Device Market
The extremity device market landscape will become increasingly competitive as more companies look to capitalize on growth in this space, according to new data from Millennium Research Group (MRG). Given the recent saturation of the large-joint orthopedic device markets, the extremity market presents an attractive new avenue for growth. As a result, many manufacturers are increasingly investing in physician training and marketing to promote greater surgeon awareness of their products and orthopedic extremity procedures as a whole. In fact, Wright Medical Technology Inc., an Arlington, Tenn.-based orthopedic implant and biologics company, recently divested its lagging large-joint reconstructive implant business to Chinese manufacturer MicroPort Medical in order to focus exclusively on its extremities portfolio.
Last year, MRG released a report that predicted the extremities market would grow to $4.2 billion by 2016. While more mature orthopedic markets, such as hips and knees, are fairly saturated, extremities are relatively untapped, and manufacturers have been investing heavily in this market, seeking growth. Orthopedic extremities include shoulder, foot and ankle, and hand, wrist and elbow.
“Most major players compete in multiple segments, allowing them to offer product bundles to meet customers' demands for discounts while maintaining profit levels,” said MRG Senior Analyst Mashkur Reza. “Many facilities have, however, found that they end up with a substantial unused extremity device inventory. As a result, there is an opportunity for companies to work closely with facilities to better understand their inventory needs and to design custom purchasing agreements.”
Merger and acquisition activity will continue to be a prominent feature in this space, MRG data suggested. Larger companies are better positioned to cross-sell products attained through the acquisition of smaller companies. In turn, products developed by smaller companies tend to cater to niche markets, offering an attractive means for large companies to supplement their product portfolios. Examples of such activity include Wright Medical Technology’s November 2012 acquisition of BioMimetic Therapeutics, giving the company potential access into the lucrative growth factor bone graft substitute market, as well as Utica, N.Y.-based medical device company CONMED’s strategic partnership with the Musculoskeletal Transplant Foundation to sell various soft tissue graft products globally.
MRG is a medical technology market intelligence company based in Toronto, Canada.