emerging opportunities for polymers in medical devices
TRANSCRIPT
Emerging Opportunities for Polymers in Medical Devices
Increasing sophistication and spending on the healthcare Increasing sophistication and spending on the healthcare iindustry ndustry drives the market.drives the market.
Tridisha Goswami, Research Analyst
Chemicals and MaterialsChemicals and Materials
04-12-12
© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Today’s Presenter
Functional Expertise:
Research and consulting experience in global chemicals and materials industry.
Particular expertise in:
• Market analysis
Competitive benchmarking
Tridisha Goswami, Research Analyst
Chemicals and Materials,
Frost & Sullivan
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• Competitive benchmarking
• Growth opportunity analysis
Industry Expertise
Experience base covering a broad range of sectors, leveraging long-standing working relationships
with leading industry participants’ Senior Executives
• Polymers In Medical Devices/Polymers in Medical Implants
• Materials In Sports And Leisure Equipment
• Flexible Packaging Industry
• Active Pharmaceutical Ingredients
• Industrial Hand Hygiene/ Personnel Protective Equipment in Healthcare Industry
Focus Points
• Occasion for Analyst Briefing
• Present and Future Trends
• External Challenges: Drivers and Restraints in the Industry
• Industry Dynamics
• Industry Trends
• Strategic Recommendations
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• Strategic Recommendations
• Conclusion
Occasion for the Analyst Briefing
• Healthcare expenditure for United States in 2010 was nearly $2.600 trillion.
• By 2020, even China’s healthcare spending will reach $ 1.000 trillion.
• The healthcare industry is one of the largest growing industry. Plastic/polymer manufacturers should look into healthcare as a high growth opportunity. Investments in this application is sure to
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high growth opportunity. Investments in this application is sure to reap benefits for the companies across the value chain.
• Participants will know about :
oKey trends in the current industrial scenario
oUnderstand the future of polymers in the medical device industry
oStrategic recommendations to gain competitive edge
Key Trends
Current:
1. Increasing healthcare spending and degree of sophistication in the medical device industry, makes the use of polymers imperative
2. Innovation and customization of materials to fit various applications
3. Value addition to materials through enhancement of properties,
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3. Value addition to materials through enhancement of properties, like anti-microbial coatings
Future:
1. Integration of materials: metals, polymers, ceramics, etc.
2. Companies become “one-stop” solution for materials needs, supplying myriad of polymers and also compounding and distributing.
3.Sustainability and “green” products and manufacturing processSource: Frost & Sullivan.
Overview of Medical Devices Industry
The Global Medical Devices Market is value at $296.81 Billion in 2010 and is growing at around 6.0 per cent
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Source: Frost & Sullivan.
Emerging Markets for Medical Devices Industry
Top Emerging Markets CAGR (2005-2010)
China 25.0-30.0 %
Russia 20.0-25.0%
7 9833-39
Brazil 20.0-25.0%
India 12.0-15.0%
Taiwan 10.0-12.0%
Argentina 7.0- 9.0%
Source: Frost & Sullivan.
Polymers in Medical Devices Industry
• Flexibility• Biocompatibility• Lubricity
• Polyethylene• Polypropylene• Polyvinyl Chloride• Silicone
Major Polymers Used
Key Characteristics that Drive the Adoption of Polymers in Medical Devices
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• Lubricity• Precision• Sterilizability• Chemical inertness• Resistance to physical forces• Ability to be modified using
additives
• Silicone• Styrene• Thermoplastic Elastomers• Polycarbonate• PEEK, PMMA• Polyamide• Acrylics
Source: Frost & Sullivan.
External Challenges: Drivers and Restraints—Polymers in Medical Devices Market
Major Challenges (Current and Future)
Current:
• Tight regulatory framework which increases time and investment required to bring a new product to the market
• Increasing cost of raw materials and dependency on volatile petroleum prices
• Governmental pressures to control healthcare expenditures
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Future
• Keeping the pace of innovation going, to provide better performance characteristics of engineered polymers which can be applied to various applications
• Advancements in nanotechnologies, and miniaturization of medical devices can be a restraint for the volume growth of polymers used in them. Source: Frost & Sullivan.
Key Drivers Summary
Aging population increases
demand for medical
procedures
Advancements in medical
procedureslead to
increased use
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Home-caretreatment gaining increasing focus
Rising incidences in health issues due to lifestyle changes
Source: Frost & Sullivan.
Time and Investment required for
product development
Governmental pressures to
lower healthcare
costs
Disposal and recycling concerns
Key Restraints Summary
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development and approval
Source: Frost & Sullivan.
Global Market Scenario
Global Scenario
Europe is a considerably large market. Healthcare industry is less affected by changes in the economy and continue to grow strongly.
Europe is a considerably large market. Healthcare industry is less affected by changes in the economy and continue to grow strongly.
North America represents the biggest market for polymers in medical device contributing 35.0 to 40.0 per cent of the global market.
North America represents the biggest market for polymers in medical device contributing 35.0 to 40.0 per cent of the global market.
Key Takeaway: Increasing healthcare demands from developing parts of the globe results in higher growth rates in Asia and Latin America.
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global market. global market.
Fast growing market due to increasing demand in sophisticated medical devices and enhanced medical care.
Fast growing market due to increasing demand in sophisticated medical devices and enhanced medical care.
Asia Pacific is the fastest growing market for polymers in medical devices. The increased focus and modernization in the healthcare industry along with growing healthcare demands drives the industry.
Asia Pacific is the fastest growing market for polymers in medical devices. The increased focus and modernization in the healthcare industry along with growing healthcare demands drives the industry.
Source: Frost & Sullivan analysis
Growth Comparison by Region
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Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
High
Polypropylene
Polymers in Medical Device Industry: Opportunity Matrix, Global,2012
Growth Opportunity Matrix
Key Takeaway: Engineering polymers have higher growth potential due to their advanced
performance properties.
Key Takeaway: Engineering polymers have higher growth potential due to their advanced
performance properties.
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LowHigh
Low
Ma
rke
t S
ize
Polyethylene
Thermoplastic Elastomers
Engineering Polymers (Polycarbonate, PEEK, PMMA)
Source: Frost & Sullivan analysis.Growth Rate
PVC
Silicone
Market Potential for Polymers
Polymer Type Application Potential Growth of Market
Polyethylene Syringe plungers, Solution bags, caps, medical tubing and catheters.
Polypropylene Drug delivery systems,
Low High
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Polypropylene Drug delivery systems, sutures, implants, syringes, medical pouches
Polyvinyl Chloride Medical pouches, Administration sets andCatheters, respiratory equipment
Thermoplastic Elastomer Medical tubing, Medical bags and pouches, stoppers for syringes
Low
Low
Low High
High
High
Source: Frost & Sullivan.
Market Potential for Polymers
Polymer Type Application Potential Growth of Market
Silicone Adhesives, lubricants and wound care, catheters and medical tubing, seals, masks, valves, clips, etc.
Polycarbonate portable diagnostic equipment, respiratory therapy devices, in-home dialysis equipment, and diagnostic
Low
Low
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dialysis equipment, and diagnostic equipment
Polyether Ether Ketone (PEEK),
Medical tubing and Implants
Polymethyl Methacrylate
(PMMA),
Diagnostic equipment and implants
Low
Low
Source: Frost & Sullivan.
Growth Opportunity by Application
Application Potential Growth of Market
Medical Tubing
Wound Care
Low High
9833-39 19
Wound Care
Medical Bags and Pouches
Implants
Medical Equipment and Diagnostics
Low High
Low High
Low High
Low High
Source: Frost & Sullivan.
Market Trends
Market Trends
Sophistication of Medical Devices
Value Addition to Polymers (Biodegradability, Anti-Microbial)
Innovation and Customization of Polymers
Market Trends Influencing Polymers in Medical Devices Industry, Global, 2011
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Source: Frost & Sullivan analysis
Medical Devices Industry
Integration of Material Design and Equipment Design
Sustainability Polymers in Medical Devices
One-Stop Solution
Market Trends: Impact
Trend 1–2 Years 3–4 Years 5–7 Years
Sophistication of Medical devices Industry H H M
Innovation and Customization of PolymersM H H
Value Addition to Polymers
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Value Addition to Polymers (Biodegradability, Anti-Microbial) M M H
Sustainable Edge to Products M H H
Integration of Material Design and Equipment design M M H
One-stop Solution to Material demandsM H H
Source: Frost & Sullivan.
Polymers Replacing Metals?
• Miniaturization of medical devices
• Homecare medical treatments
• Light weight alternatives
• Metals: Metallic debris generated by friction
• Need for Biodegradability, recyclability and disposable medical devices
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devices
• Aesthetics
• Ability to be engineered and customized
• Example: PEEK replacing metals in orthopedic implants market
Metals will not become obsolete. The future will see more of material integration, like metallic core and polymer coatings.
Source: Frost & Sullivan.
Strategic Recommendations
Strategic Recommendations
Innovation and customization: Closely working with OEM’s to optimize material and equipment designs to enhance quality and reduce costs and effective product innovation
Broad Product Geographical expansion or
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Polymer Manufacturers
Broad Product Portfolio to be a one-stop solution for OEM’s material needs.
expansion or distribution network to emerging countries
Implementing sustainable manufacturing : Focus on reducing material use, degradability, recyclability and energy efficient production process
Conclusion
• The growth in medical devices industry is expected to continue with double digit growth rates in emerging countries. This provides high growth opportunities for the polymers used in them.
• Compared to applications such as automotive and construction, healthcare offers higher profit margins and is less tied to GDP growth.
• This presentation covered some key trends, drivers and
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• This presentation covered some key trends, drivers and challenges of the industry.
• Frost and Sullivan covers markets for polymers in medical devices applications in detail. Some of the recent studies are as below:
o Western European Market for Polymers in Medical Devices (M807-39)
o Analysis of the Plastic Polymers in Medical Devices Market (NA67-39)
Next Steps
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Global Webinar Marketing Coordinator Industry
(210)-247-2435
Tridisha Goswami
Research Analyst
Chemicals, Materials and Food
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