Trauma device and reconstructive joint implant market in Latin America expected to reach $1.75 billion by 2022

Decision Resources GroupJul 9 2014

Decision Resources Group finds that the market for trauma devices and reconstructive joint implants in Argentina, Brazil, Colombia and Mexico will be driven by favorable demographics, high numbers of motor vehicle accidents and improving access to health care, which will allow more patients to undergo these procedures. However, limited health care facility budgets will continue to hinder market growth to some extent. As a result, the market will expand moderately through 2022 to reach a value of approximately $1.75 billion.

Other key findings from Decision Resources Group's coverage of the Latin American trauma device and reconstructive joint implant market:

• Health care: Improving insurance coverage throughout Latin America and the introduction of universal health care in Mexico and Colombia will contribute to growing numbers of procedures being performed because patients will be better able to afford them.
• Declining prices: Limited health care budgets and reimbursement that does not cover premium-priced products will continue to drive preference for lower-cost domestic devices. As a result, aggregate product prices will decline slightly through 2022.
• Vehicle accidents: Trauma currently represents about 65 percent of total procedures. Latin America has some of the highest motor vehicle accident rates in the world, which drives demand for internal and external fixation devices. In particular, Argentina and Colombia have introduced mandatory accident insurance that covers traffic accident-related medical costs, which will drive market growth in those countries. However, road safety campaigns dedicated to preventing road traffic accidents have launched in a number of countries, which may lower the number of traffic accidents somewhat.

Comments from Decision Resources Group Analyst Yulia Privolnev:

• "The competitive landscape is dominated by large international companies like DePuy Synthes, Zimmer and Stryker. These competitors frequently rely on distributors to navigate the Latin American markets for various reasons, including local knowledge and networks. But there are some signs that the tides are changing; more companies are choosing to operate directly—either by opening local offices or by buying their distributors."
• "In Argentina and Brazil, government policies are in place to protect the domestic industry. These protectionist policies impose strict regulations and import quotas, making it more difficult for international companies to compete effectively and allowing domestic competitors, such as Industrias Medicas San Pedro and Ortosintese, to gain some foothold in these countries. However, these markets are still dominated by international competitors."

Additional Resources:

• Yulia Privolnev has written a Medtech 360 report on this subject entitled Latin American Markets for Trauma Devices and Reconstructive Joint Implants 2014.