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According to a recent market study, procedures in the combined Asia-Pacific (Australia, Japan, South Korea, India, China) hip and knee replacement market are projected to grow at a 10 percent CAGR between 2017 and 2024 — approaching nearly 2.4 million procedures performed by 2024.
In contrast to developed countries, where the large joint reconstruction market is in its mature stage and can be characterized by a high level of saturation and product commoditization, the hip and knee replacement markets in India and China currently are underserved and, thus, present tremendous opportunities for large joint device manufacturers. The combined number of hip and knee procedures in India and China will double by the year 2024, due not only to natural factors — such as a growing incidence of osteoarthritis and an ever-aging population — but also due to the increasing affordability of the surgery.
Currently, a large percentage of people in India and China who qualify for hip or knee replacements either are put on long waitlists, due to a lack of qualified surgeons, or are simply not able to afford the surgery. However, with the continuous penetration of health insurance, rising disposable incomes in the developing countries and — most importantly — a steady reduction in average selling prices, considerably more people will be able to afford joint replacement in the near future.
The trend of price deterioration applies to the global orthopedic markets and is caused by a number of factors, such as increased competition and increased pressure from healthcare providers and governments that closely manage their budgets. While average implant prices in the United States have steadily declined over the past few years due to the purchasing power of Group Purchasing Organizations, prices in some European countries have been dropping due to the tender system applied by some governments to reduce healthcare spending. As for the Australian market, reimbursement rate management and private healthcare reform have been lowering average prices in the country.
While the steady price decline limits market value growth of hip and knee replacement devices across the globe, it is expected to have a particularly significant effect on the Indian and Chinese markets over the coming years. This trend incentivizes market players to develop cost-effective solutions in order to capitalize on the growing number of procedures in the most populous countries in the world.
Currently, the Indian healthcare system is dominated by the private sector, and only a small fraction of the vast Indian population is covered by health insurance. While average incomes are increasing and more healthcare insurance providers are entering the Indian market, hip and knee replacement procedures typically have remained too costly for a large percentage of the Indian population.
This article was originally published on MedDeviceOnline, to continue reading please visit https://www.meddeviceonline.com/doc/asian-hip-knee-implant-market-primed-for-drastic-procedure-volume-increases-0001
For Further Information
More on the orthopedic large joints replacement market in the U.S. can be found in a series of reports published by iData entitled the U.S. Market Report Suite for Orthopedic Large Joint Devices. This report covers the following market segments: hip implants, knee implants, and bone cement.