SHOW PREVIEW news Shifting consumer preferences and positive uptake of CAD/CAM technology Artur Kim and Dr Kamran Zamanian, iData Research, discuss current developments in the European dental implant market (cid:132) Europe has some of the most highly penetrated markets for den- tal implants in the world, including Italy, Germany and Spain, but it also contains regions with considerably under-developed markets, such as France and the UK.1, 2 A shift in con- sumer preferences will be a key characteristic of the European mar- ket in the future, in both the dental implant fi xture market and fi nal abutment market. Although the shifts will contrast one another, they will both have a signifi cant im- pact on the market in terms of over- all pricing, the competitive land- scape and technological innovation. Historically, premium dental im- plant companies have dominated in Europe, but have recently faced in- creased competition from the value and discount brands. A growing prevalence of local manufacturers and an increasingly cost-sensitive consumer demographic will contrib- ute to overall price depreciation and the declining presence of premium implants in the future.1 Region-specifi c growth of the premium segment is highly reliant on the prevalence of domestic, lower cost dental implant brands. In countries such as Italy, Germany and Spain, there is a plethora of lo- cal value and discount dental im- plant companies that have emerged to cater to the growing cost sensitiv- ity expressed by dentists. Within these regions, the premium segment of the market has lost signifi cant market share and is exhibiting far lower growth relative to the past. It is expected that this trend will con- tinue to spread throughout Europe, as consumer preferences shift to- wards lower cost products. Several competitors in the German and Ital- ian implant markets have been par- ticularly successful at capitalising on the shift in consumer prefer- ences and now represent the top leading implant brands in those re- gions, both in terms of volume and revenue.1 Premium implant companies have acknowledged the impact of value and discount brands on the market, not only through discount pricing, but also through acquisi- tions and strategic investments. In April 2015, Straumann increased its ownership of Neodent, a leading value implant manufacturer from Latin America, to 100 per cent in or- der to strengthen its product port- folio and maintain a competitive po- sition in both the premium and value segments.3 Straumann has also in- vested in a number of value and dis- count brands that cater to the Euro- pean market, including Biodenta, Medentika, MegaGen and Anthogyr. These investments are supple- mented by Instradent, Straumann’s business platform established in 2014, which currently provides dis- tribution for Neodent and Meden- sure from local, low-cost and generic manufacturers.1 Another recent de- velopment within the stock abut- ment segment also contributing to price depreciation is the introduc- tion of Ti-base abutments. Ti-base abutments, also known as titanium bases or titanium inter- faces, are a recent innovation within the stock abutment market that are a cost-effective alternative to tradi- tional CAD/CAM abutments, since milling laboratories with CAD/CAM production are in greater abun- dance. Furthermore, CAD/CAM zir- conia abutments are primarily re- quired in cases in which aesthetic outcomes are of higher priority, such as the anterior region of the mouth.5 CAD/CAM abutments are expected to continue to experience double-digit growth, and the ex- panding market share of the seg- ment will limit ASP of the overall that have been able to secure a no- table market share from the pre- mium companies include BioHori- zons, CAMLOG, Global D, medentis medical, Sweden & Martina and re- gional manufacturers.1 Other notable developments in the European market for dental im- plants include the increased uptake of ceramic materials, growing pres- ence of implant companies in the bio- materials space and rising demand tika through an online store and worldwide network.3 In June 2016, Dentsply Sirona continued its ex- pansion by announcing a defi nitive agreement to acquire MIS Implants Technologies, an Israel-based com- pany that has a leading position in the value implant segment.4 Large conglomerates too have taken note of the changing structure of the market, with Henry Schein making strategic investments in BioHori- zons and CAMLOG, while Danaher Corporation has invested in Nobel Biocare and Implant Direct. Rapidly growing CAD/CAM segment in the fi nal abutment market Similar to the historical domi- nance of the premium segment in the implant market, the market for fi nal abutments has traditionally been controlled by the stock abut- ment or prefabricated abutment segment. Although the majority of stock abutments lack many benefi ts associated with patient-individual- ised solutions found within the cus- tom-cast abutment and CAD/CAM abutment segments, they still pro- vide a relatively simple and cost-ef- fi cient solution in most implant pro- cedures. The segment is expected to continue experiencing price erosion owing to increasing pricing pres- include they are intended for in-house or independent milling machine use. Examples Straumann’s Variobase and Nobel Biocare’s Uni- versal Base, which give dentists the option of placing a cement-retained or screw-retained restoration. Ti- bases also allow dentists to choose between a hybrid abutment and a hybrid abutment crown (a combina- tion of an abutment and a mono- lithic crown). The presence of Ti- base abutments has grown rapidly across most regions in Europe and it is expected to become the predomi- nant stock abutment type in the near future. The cost-effective na- ture and fl exibility of options of- fered with Ti-base abutments will help maintain the position of the to- tal stock abutment segment in the overall market. Stock abutments currently represent over 50 per cent of the total fi nal abutment volume in the majority of markets across Europe, but this share is expected to steadily decrease.1 Recent improvements in pro- duction capability and technologi- cal innovation have made CAD/ CAM abutments signifi cantly more affordable than in the past. CAD/ CAM abutments are now relatively comparable in price to custom-cast abutments and are more easily ac- cessible, especially in regions where abutment market, since it carries a price premium relative to stock abutments and custom-cast abut- ments.1 Consolidation and emerging players in the competitive landscape by In addition to investments in value and discount companies, the market for dental implants has been distinguished consolidation among the top competitors. Most re- cently, Dentsply Sirona was estab- lished after the merger of DENTSPLY International and Sirona Dental Sys- tems in February 2016, combining the strengths of each company in dental consumables and innovative technology, respectively.6 The pre- mium implant company acquired ASTRA TECH in 2011 and an- nounced the acquisition of MIS in June 2016.4 In June 2015, Zimmer Biomet was formed through the merger of Zimmer and Biomet, com- bining the dental divisions of each company, Zimmer Dental and BIOMET 3i.7 Although the premium implant companies still collectively main- tain over 60 per cent of the Euro- pean market, they are expected to face competitive challenges from emerging players in the value and discount segments. Competitors for modern surgical protocols, such as immediate loading and full-arch restorations. Overall, growth within each segment will be highly depen- dent on the afore-mentioned factors and region-specifi c characteristics.1 Editorial note: A list of references is available from the publisher. Artur Kim is a research analyst at iData Research in Canada and lead researcher for the 2017 Europe Dental Implant Report Suite. Her current work includes the 2017 Europe Dental Bone Graft Substitute Suite and the 2017 Europe Orthopedic Soft Tissue Repair Suite. Dr Kamran Zamanian is President, CEO and founding partner of iData Research. He has spent over 20 years working in the market research industry. 12 37th International Dental Show 2017