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ePaper created 2015-04-01, 09:22:42 | version 1.33.01
business10 APDC Singapore 2015 ThevariouscountriesintheAsia Pacific region are all expected to demonstrate an increasing de- mand for dental implant treat- ments as a result of growing con- sumerawareness,theageingpopu- lation, growing accessibility (such as through the National Health In- surance Service coverage in South Korea), as well as greater product availability and other influencing factors.Traditionally,premiumim- plant companies have dominated thedentalimplantmarketglobally. However, in recent years, dis- counted implants have become in- creasingly popular, especially in the Asia Pacific region. The growth of the discount im- plant segment will emerge at the expense of the premium segment andasaresultissettolimitmarket growth for dental implant fixtures by lowering the market’s overall average selling price (ASP). In con- trast, the final abutment market is set to experience an increasing ASPowingtothegrowingadoption of CAD/CAM abutments in the place of stock abutments. While commoditisation of stock abut- ments has greatly depressed the ASP of the final abutment market, growing adoption of CAD/CAM abutments is set to stimulate the fi- nal abutment market by pulling the ASP upwards. Therefore, the dental implant market is set to grow in all four countries included in the Asia Pacific region in this report, namely Australia, South Korea, Japan and China, despite varying pricing trends. In the Asia Pacific dental im- plant market, consumer aware- ness, cultural tendencies and do- mestic regulations vary greatly. South Korea represents the most highly developed dental implant market as a result of being home to a number of global leading dental implant companies. This in turn has led to a high level of consumer awareness and early accessibility to a variety of dental implant prod- ucts. However, the dental implant market in South Korea is also highly discount dominant and led by domestic implant producer OSSTEM IMPLANT and as a result demonstrated the lowest regional dental implant ASP of US$86 in 2014. In contrast, the Australian mar- ket remains highly dominated by leading premium implant compa- nies, which collectively held over 70%ofthedomesticmarket.Conse- quently, Australia demonstrated the highest dental implant fixture ASP in the region at US$345 in 2014.Anincreasingnumberofgen- eralpractitionersarebeingtrained in dental implant procedures in Australia, and general practition- ers have been observed to be more cost sensitive relative to special- ists. As a result of a growing num- ber of general practitioners in the market, consumer preferences are shifting towards discounted solu- tions. Discount implant companies from the US and South Korea have recently been gaining market share in Australia. Throughout the forecast period, the premium seg- ment of the market is expected to grow at far lower annual growth rates relative to the discount and value segments in Australia. By 2021, it is expected that discount implants will represent 43% of the overallunitsintheAustralianmar- ket. The Japanese and Chinese markets for dental implants are also dominated by premium com- panies. In recent years, OSSTEM IMPLANT has had a significant im- pact on the Chinese market, how- ever, especially as a result of the training programme offered by the company’s Advanced Dental Im- plant Research and Education Cen- ter. All segments of the dental im- plantmarketinChinaareexpected todemonstratedouble-digitannual growth. However, the discount market is set to grow far more dra- matically throughout the forecast period. By 2021, discount implant fixtures are set to represent over 50% of the overall units in the Chi- nese dental implant market. The shift towards discount im- plantsinJapanisexpectedtobefar less dramatic, especially owing to cultural barriers that limit the suc- cessofKoreandentalimplantcom- panies. The premium implant seg- ment is expected to remain the dominant dental implant market throughout the forecast period. Unitrepresentationofdiscountim- plants is expected to increase slightly from 12.5% currently to 14.6% by 2021. The growing acceptance of dis- count implants has been driven by Korean companies. The regional market leader, OSSTEM IMPLANT, held a 21.9% share of the total den- tal implant market for the Asia Pa- cific region in 2014. The company has invested significantly in mar- keting efforts, which has led to the growingpopularityofitsproducts. Throughout the forecast period, OSSTEM IMPLANT and other dis- count implant companies, such as MegaGen, Dentium and Neo- biotech, are expected to capitalise on the growing popularity of dis- count implants. In contrast, pre- mium implant companies, such as Straumann and Nobel Biocare, are expected to face increasing com- petitive pressures, especially in China and Australia. Emphasis on CAD/CAM In the dental implant market, the final abutment market is un- dergoinganopposingpricingtrend relative to dental implant fixtures. CAD/CAM abutments are being in- creasingly utilised in the place of cheaply produced stock abut- ments. CAD/CAM development has been relatively rapid in the Asia Pacific region in recent years. A growing number of CAD/CAM milling centres have emerged to produce CAD/CAM abutments for the dental implant market. The overallregionissettodemonstrate significant growth in the CAD/ CAM segment for final abutments. In contrast to the dental implant fixture market, where discount products are gaining share, the overall final abutment market is set to demonstrate an increasing ASP. CAD/CAM final abutments arerelativelymoreexpensivethan stockabutments,whichhavetradi- tionally dominated the market. The shift towards CAD/CAM abut- ments is set to be most significant in China. For the overall region, units of CAD/CAM abutments are set to grow at a compound annual growth rate of 22.1%. By 2021, CAD/CAM abutments are forecast to represent 31.6% of the overall abutment units in Asia Pacific. Conclusion Overall,thedentalimplantmar- ket, including fixtures and abut- ments,issettogrowatacompound annual growth rate of 11.5% for the Asia Pacific region. The unit growth will far outweigh the ASP effects, and the dental implant market will grow to reach a higher penetration ratio for the overall Asia Pacific region. Growing CAD/CAM abutment adoption vs increasingly popular discount implants Opposing pricing trends to influenceAsia Pacific dental implant market Dr Kamran Zamanian & Celine Mashkoor,Canada Unit analysis of dental implant fixtures for Australia. By 2021, units of premium implants will drop dramatically to represent 42% of the overall dental implant fixtures in the country. China’sdentalimplantmarket.TheadoptionofCAD/CAMfinalabutments,whicharemoreex- pensive, and a growing discount implant segment are set to result in the final abutment market representing a larger portion of the dental implant market throughout the forecast period. Growing CAD/CAM abutment market vs declining unit share of stock and custom cast abut- ments. OSSTEM IMPLANT, a Korean discount dental implant company, led the Asia Pacific market for dentalimplantfixturesandfinalabutmentsin2014.Thecompanyisexpectedtocontinuetocap- italise on the growing popularity of discount implants. Dr Kamran Zamanian and Celine Mashkoor are market research analysts for iData Research (www.idataresearch.com) in Canada.