Market growth versus size in spine surgery products

Often, one must see the forest before appreciating what a tree is. In the context of examining medtech markets, I am constantly interested in being able to answer the "so what?" question. For example, so what that the global spine surgery market is currently over $13 billion annually? What does this matter to the individual manufacturer of [fill in the blank] spine product? Does this manufacturer focus on pedicle screws, an interbody fusion device, an artificial disc, an allograft, a DBM?  What are the opportunities and challenges that any particular current (or hopeful) market participant faces in seeking to sustain or grow market share for their own particular market position(s)?

There are two ways to look at it, from the top down (what share of x is y now, and in the future?) or the bottom up (what are the current and forecast sales of [spine product] in [specific country]? Of course, clients need to know — as clearly as possible — where they are now, as well as where they will be in the future, given the likely outcome of their possible moves — and the net effect of those of all competitors — that they may make today.

Therefore, I tend to look at medical technology markets from the standpoint of the market size (i.e., $ million/billion revenues) of the various product segments (not just U.S., or Europe, but GLOBALLY) and the forecast growth rates (I say rates, not rate, since markets are always in flux, with variable rates) for each of the discrete components of the market. 

Illustrated below is the market for products in spine surgery, presented on two scales:  market size and market growth.

 

Spine-2011-segment-size-growth

 

Source: MedMarket Diligence Report #M520.

This graph illustrates the context of spine surgery for all relevant participants (based on our categorization of the constituent spine market segments).

Since this data is illustrated on two axes — growth and size — it lends an opportunity for the reader to consider (a) size in the context of growth, (b) growth in the context of size and (c) both.

In the end, this type of data is useful only in framing out the relative size of the market opportunity, the importance of which is dependent on whether companies are established or emerging with new tehnology. It is the responsibility of each medtech manufacturer to determine how that specifically applies to their own situation.

Posted via email from medmarket's posterous

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