Increase in Minimally Invasive Surgeries Set to Spur Adoption of Related Devices

Main Category: Medical Devices / Diagnostics
Article Date: 03 Aug 2005 - 16:00 PDT

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The steady increase in surgical procedures is set to trigger more opportunities for minimally invasive techniques. With the potential for fewer complications, less complex procedures and reduced average lengths of hospital stay, minimally invasive surgeries (MIS) will hold particular appeal to cost conscious health care authorities. Therefore, the long-term cost efficiencies may encourage uptake of MIS devices despite their higher capital costs, boosting the prospects of European MIS device manufacturers.

Over time, MIS procedures will outnumber traditional open surgery with the market for related MIS devices set to soar from its current size of USD 779.0 million to USD 1,164.0 million in 2011. Therefore, the immense potential of the market is likely to offer considerable opportunity to new participants with regional markets in Italy, Spain and the United Kingdom forecast to experience high growth despite intensifying competition.

Growing awareness about minimally invasive modalities and their benefits among health care practitioners and patients is likely to trigger demand for technologically advanced MIS devices. Such acceptance is also being supported by the emergence of several clinical conditions that lend themselves to MIS techniques.

Clinical specialties such as prostate resection, nephrectomy, ureteric surgery (urology), lap. ablation, endometriosis, fibroids (gynaecology), carpal tunnelling, shoulder and knee surgery, mandibles surgery (orthopaedics), gastric bypass, splenectomy, bowel surgery as well as gastrectomy (general surgery) are included in the potential niche applications that MIS device manufacturers can target.

Moreover, novel MIS procedures in paediatrics, oncology and cardiology are set to widen the adoption of MIS devices. Trends such as miniaturisation and instrument development will also reinforce the expanding scope of MIS devices.

In this context, companies with product lines catering only to a particular niche segment can focus on application expansion. Ms. Aarti Ajay, Research Analyst with Frost & Sullivan (http:frost.healthcare.com) advises, "Such companies need to identify newer surgical procedures that have potential for use of MIS and they should focus more on organ specific studies than on system specific studies."

The strategy to concentrate on product line development will be effective for companies providing a complete range of instruments and devices that cover all specialities. "Upgrading options and enhancing features will be an aspect of developing a complete product line. Companies also need to build a 'one-stop shop' strategy by bundling products customised to suit the specific needs of customers," adds Ms. Ajay.

More immediately, manufacturers have to contend with cost containment schemes that can stifle revenue growth. Given the limited budgets, volume purchase by local or national purchasing groups has become common. Even at the micro level, groups or individuals are joining together to purchase common equipment. In addition, as private clinics try to attract more patients with discounted treatments, they demand price cuts from manufacturers.

Escalating competition is contributing to price erosion within the market. Foreign manufacturers are being compelled to reduce prices to match local manufacturers that offer cheaper endoscopes. This is leading to overall price erosion within the market. The repair and exchange of endoscopes by companies at a lower price is resulting in further price undercutting.

Such developments are creating tremendous price pressures in the market. While manufacturers need to bring pricing in line with cost containment plans in Europe, they can also adopt various strategies to maintain their profit margins. These include forging relations with managed care providers to increase volume sales. Developing high quality, enhanced product features and continuously improving product technology will enable companies to charge premium prices and would also be essential to gaining the acceptance from surgeons that play an important role in purchase procedures.

In this highly competitive setting, technological innovation and new product development are poised to be crucial to retaining profitability. For instance, sophisticated endoscopes catering to niche segments will demand premium prices. Indeed, surgical endoscopes (already the largest revenue contributor to the market) may be the fastest growing segment due to the rapid adoption of technologically advanced, high-end products catering to specific surgical applications that command premium prices.

If you are interested in a research overview, which provides manufacturers, end-users and other industry participants with a synopsis of the latest analysis of the Minimally Invasive Surgical Devices Market (B489-54) - then send an e-mail to Katja Feick - Corporate Communications at katja.feick@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the information via e-mail upon receipt of the above information.

Minimally Invasive Surgical Devices Market (B489-54)

Background

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

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