TORONTO–(BUSINESS WIRE)–According to Millennium Research Group (MRG), the global authority
on medical technology market intelligence, a growing number of injuries to the
aging population combined with more active lifestyles will lead to
unspectacular but steady growth in the market for orthopedic bracing devices
through 2015.
“This is a huge market, and thus a significant expense for
insurers”
The combination of an aging population and higher rates of
obesity leads to significant increases in knee problems. Knee bracing, the
largest part of the market, will see strong growth as a result. At the same
time, younger and more active patients are seeing higher rates of sports
injuries, leading to the need for knee, ankle and wrist bracing. In general, as
healthcare consumers become more informed, they are more likely to request
bracing in the hopes of avoiding invasive surgery.
The US
orthopedic bracing market is highly fragmented and competitive. Aside from DJO
Global, with just over a quarter of the total market, no other competitor has a
market share as high as 10 percent. Competitors include Össur, DeRoyal Medical
Products, Bledsoe Brace Systems, Spinal Technology, Breg (an Orthofix company)
and Bird & Cronin. Dozens of companies with even lower shares comprise over
40 percent of the rest of the market.
The result is an increasingly commoditized market with
strong price competition. Braces have similar product features and there has
been little recent innovation in brace design. Many companies gain market share
through discounting, contracts with group purchasing organizations and other
pricing strategies, rather than product differentiation.
“This is a huge market, and thus a significant expense for
insurers,” said MRG Lead Analyst Deanna Vankessel. “They have been holding
reimbursements down, further affecting prices manufacturers can get for their
prescription products. As a result, many manufacturers are developing and
marketing better-fitting and more functional off-the-shelf braces. And soft
braces have completely lost Medicare and Medicaid coverage in recent years,
leading manufacturers to reduce prices on those as well. This has a serious
affect on manufacturer product margins, but clearly benefits patients, who have
access to a wide variety of reasonably priced braces.”
Millennium Research Groups US Markets for Orthopedic
Bracing Devices 2012 report includes procedure, unit, average selling price and
revenue information, along with market drivers and limiters and competitive
landscape for knee, ankle, wrist, elbow and back braces and walker boots that
are obtained with a prescription in the United States.
About Millennium Research Group
Millennium Research Group (www.MRG.net), a Decision Resources Group company (www.DecisionResourcesGroup.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™ projects,
customer loyalty tracking, facility-level procedure forecasting, and customized
solutions.
About Decision Resources Group
Decision Resources Group is a cohesive portfolio of companies that offers
best-in-class, high-value information, and insights on important sectors of the
healthcare industry. Clients rely on this analysis and data to make informed
decisions. Please visit Decision Resources Group at www.DecisionResourcesGroup.com.
