WALTHAM, Mass., Dec. 7 According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, despite a tough year for the over $800 million global powered surgical instrument market, companies are creating strategies to promote market recovery. MRG's Global Markets for Powered Surgical Instruments 2010 report finds that many companies are replacing up-front costs of capital equipment purchases with 3 to 5 year financing programs through consumables contracts, driving this market to nearly $1 billion by 2014.
In 2009, many hospitals were coping with tighter budgets, and as a result they put off new purchases of capital equipment. This led to declines in capital equipment sales in the US, and slowed growth in Europe and Japan. As the global economy begins to emerge from recession through 2010, the market for capital equipment will slowly begin to rebound. Powered surgical instruments are used in many procedures that cannot be delayed indefinitely, such as joint replacement, sternotomy, and craniotomy surgeries. Sales of consumables such as saw blades, burrs, and drill bits will therefore continue to grow steadily with procedures, while capital equipment sales will resume as older systems become worn out and need to be replaced. Furthermore, surgeons are widely espousing the use of battery powered large-bone systems, which afford greater mobility in the operating room. Battery powered systems are more expensive than the pneumatic systems which they typically replace, so the penetration of these premium-priced devices into the market will boost overall market revenues.
"In order to remain competitive throughout 2009, companies in the US and Europe began to negotiate purchases with hospitals through consumable contracts," says Melissa Hussey, Analyst at MRG. "Despite a slowdown in capital equipment sales this year, companies have been able to protect their current market share and future revenue streams. With strong service agreements in place and hospitals holding onto equipment longer, growth in the market value for repairs and maintenance is expected; while hospitals will reduce expenditures in the short term, manufacturers who establish themselves in those facilities will recover revenues over time."
MRG's new report, Global Markets for Powered Surgical Instruments 2010, provides critical insight into emerging trends that will fuel global market growth for powered surgical instruments through 2014. The report provides complete breakdowns of unit sales, average selling prices, and revenues within the large-bone, small-bone, and high-speed segments. Market coverage spans capital equipment (battery, electric, and pneumatic systems), consumables, and revenues from repair and maintenance services, including battery replacement.
About Millennium Research Group
Millennium Research Group (www.MRG.net), a Decision Resources, Inc. company (www.DecisionResourcesInc.com), is the global authority on medical technology market intelligence and the leading provider of strategic information to the healthcare sector. The company provides specialized industry expertise through multiclient market research, ongoing Marketrack(TM) projects, customer loyalty tracking, facility-level procedure forecasting, and customized solutions.
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SOURCE Millennium Research Group