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Worldental Daily Bangkok 2015, 22 September

Business Tuesday, 22 September 2015 T he various countries in the Asia Pacific region are all ex- pected to demonstrate an in- creasing demand for dental implant treatments as a result of growing consumer awareness, the ageing population, growing accessibility (suchasthroughtheNationalHealth Insurance Service coverage in South Korea), as well as greater product availability and other influencing factors. Traditionally, premium im- plant companies have dominated the dental implant market globally. However,inrecentyears,discounted implants have become increasingly popular,especiallyintheAsiaPacific region. The growth of the discount im- plant segment will emerge at the expense of the premium segment and as a result is set to limit market growth for dental implant fixtures by lowering the market’s overall aver- age selling price (ASP). In contrast, the final abutment market is set to experience an increasing ASP owing tothegrowingadoptionofCAD/CAM abutments in the place of stock abutments. While commoditisation of stock abutments has greatly de- pressed the ASP of the final abut- ment market, growing adoption of CAD/CAM abutments is set to stimu- late the final 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 re- port, namely Australia, South Korea, Japan and China, despite varying pricing trends. In the Asia Pacific dental implant market, consumer awareness, cul- tural tendencies and domestic reg- ulations vary greatly. South Korea represents the most highly devel- oped dental implant market as a re- sult of being home to a number of globalleadingdentalimplantcompa- nies.Thisinturnhasledtoahighlevel of consumer awareness and early ac- cessibility to a variety of dental im- plant products. 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 demon- strated the lowest regional dental implant ASPof US$86 in 2014. In contrast, the Australian market remains highly dominated by leading premium implant companies, which collectively held over 70% of the domesticmarket.Consequently,Aus- tralia demonstrated the highest den- talimplantfixtureASPintheregionat US$345 in 2014. An increasing num- ber of general practitioners are being trained in dental implant procedures inAustralia,andgeneralpractitioners have been observed to be more cost sensitive relative to specialists. As a result of a growing number of general practitionersinthemarket,consumer preferences are shifting towards dis- counted solutions. Discount implant companies from the US and South Korea have recently been gaining market share in Australia. Through- out the forecast period, the premium segment 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 willrepresent43%oftheoverallunits in the Australian market. TheJapaneseandChinesemarkets fordentalimplantsarealsodominated by premium companies. In recent years, OSSTEM IMPLANT has had a significantimpactontheChinesemar- ket, however, especially as a result of thetrainingprogrammeofferedbythe company’s Advanced Dental Implant Research and Education Center. All segmentsofthedentalimplantmarket in China are expected to demonstrate double-digit annual growth. However, the discount market is set to grow far more dramatically throughout the forecast period. By 2021, discount im- plant fixtures are set to represent over 50%oftheoverallunitsintheChinese dentalimplantmarket. The shift towards discount im- plants in Japan is expected to be far less dramatic, especially owing to culturalbarriersthatlimitthesuccess of Korean dental implant companies. The premium implant segment is ex- pectedtoremainthedominantdental implant market throughout the fore- cast period. Unit representation of discount implants is expected to in- crease 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 mar- ket leader, OSSTEM IMPLANT, held a 21.9% share of the total dental im- plantmarketfortheAsiaPacificregion in 2014. The company has invested significantly in marketing efforts, whichhasledtothegrowingpopular- ity of its products. Throughout the forecast period, OSSTEM IMPLANT and other discount implant compa- nies, such as MegaGen, Dentium and Neobiotech, are expected to capita- lise on the growing popularity of dis- count implants. In contrast, premium implantcompanies,suchasStraumann and Nobel Biocare, are expected to face increasing competitive pressures, especially in China and Australia. EMPHASIS ON CAD/CAM In the dental implant market, the final abutment market is undergoing an opposing pricing trend relative to dental implant fixtures. CAD/CAM abutments are being increasingly utilised in the place of cheaply pro- duced stock abutments. 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 abut- ments for the dental implant market. The overall region is set to demon- strate significant growth in the CAD/CAM segment for final abut- ments. In contrast to the dental im- plant fixture market, where discount products are gaining share, the overall final abutment market is set to demonstrate an increasing ASP. CAD/CAM final abutments are rela- tively more expensive than stock abutments, which have traditionally dominated the market. The shift to- wards CAD/CAM abutments 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 abut- ments are forecast to represent 31.6% of the overall abutment units in Asia Pacific. CONCLUSION Overall,thedentalimplantmarket, including fixtures and abutments, is set to grow at a compound 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 OpposingpricingtrendstoinfluenceAsiaPacificdentalimplantmarket.ByDrKamranZamanian&CelineMashkoor,Canada IDr Kamran Zamanian and Celine Mashkoor are market research analysts for iDataResearch( IChina’sdentalimplantmarket.TheadoptionofCAD/CAMfinalabutments,which are more expensive, and a growing discount implant segment are set to result in the final abutment market representing a larger portion of the dental implant marketthroughouttheforecastperiod. IGrowingCAD/CAMabutmentmarketvsdecliningunitshareofstockandcustom castabutments. IOSSTEM IMPLANT, a Korean discount dental implant company, led the Asia Pacific market for dental implant fixtures and final abutments in 2014. The company is expected to continue to capitalise on the growing popularity of discountimplants. IUnit analysis of dental implant fixtures for Australia. By 2021, units of premium implants will drop dramatically to represent 42% of the overall dental implant fixturesinthecountry. 22 “The growth of the discount implant segment will emerge at the expense of the premium segment and as a result is set to limit market growth for dental implant fixtures...” WDD0115_22_Zamanian 21.09.15 13:45 Seite 1 WDD0115_22_Zamanian 21.09.1513:45 Seite 1

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