Market Analysis of Medical Implants for Surgery in India

The relevance of research

The market for medical implants for surgery is growing, and the traditional methods of fixation with the help of long-term use of plaster are being replaced by the introduction of osteosynthesis. An analysis of the situation on the world market confirms the conclusion that medical implants for surgery are promising products in terms of the potential for demand growth. 

Purpose of the study

Analysis of the state of the market for medical implants for surgery, assessment of the market size, analysis of competitors, exports, imports, as well as identification of factors affecting the market for medical implants for surgery.

Content

Part 1. Market Overview of Medical Implants for Surgery in India

1.1 Main characteristics of the market
1.2 Evaluation of factors affecting the market
1.3 Indian production volume 
1.4 Share of exports in production
1.5 Market share of imports
1.6 Dynamics of the market volume and capacity in 2015-2017
1.7 Market structure:
1.7.1 by Type of Medical Implants for Surgery
1.7.2 by sales channels (through government auctions/other channels)

Part 2: Competitor Analysis

2.1 Major players in the market
2.2 Market shares of the largest competitors
2.3 Pros and cons of the biggest competitors

Part 3. Analysis of the state. trading in 2017 (start date, end date, region, list of purchased products, initial contract amount)

Part 4. Consumption forecast until 2022

Part 5. Recommendations and conclusions

Research excerpt

Part 1. Market Overview of Medical Implants for Surgery in India
1.1 Main characteristics of the market
Various types of implants are irreplaceable today and are used in such medical fields as surgery, traumatology, plastic surgery, ophthalmology, gynecology, neurosurgery, urology, vascular surgery and others. At the same time, the implantation of various objects into the patient's body - from suture materials and meshes to devices that replace the lost function of organs - occupies a significant position, and in some clinical situations is not only one of the means of treating and correcting pathological conditions, but often having no alternatives, remains the only way to treat the disease.
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The stage of its development can also be assessed as the beginning of the stage of redistribution of market shares due to political consequences: the threat of new sanctions and restrictions on supplies from familiar European and American manufacturers forces us to expand the circle of potential suppliers and consider alternative proposals.

1.2 Evaluation of factors affecting the market
Social (demographic), technological, political, legal and economic factors can be noted as the main factors influencing the market of medical implants for surgery.
Social (demographic) factors
Let's consider the impact of socio-demographic factors on the market of medical implants for surgery. To begin with, I would like to note a positive factor for the industry - the growth in demand of potential consumers from among the Customers - due to trends in maintaining the quality of life and working capacity of the injured population, which is one of the priorities announced at the state level.
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As for the overall impact of the demographic situation on the industry, over the past seven years, the change in the population of India has shown a positive trend, there has been a positive natural increase in the population. Over the past three years, the population growth has amounted to ""plus"" ...%. Natural population growth is a factor that positively characterizes global trends in the Indian economy, the growth of consumption in general, indirectly confirming the growth of domestic market needs, including in goods for osteosynthesis.
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In general, the current situation in the Indian market is ... for the entry of a new supplier into the medical implant market, except that ... 
From the side of the possibility of organizing sufficient volumes of our own Indian production - STEP-analysis shows that in the short term ...

1.3 Indian production volume
Over the past 8 years in the Indian market of medical implants for surgery, the share of products of Indian manufacturers has grown significantly: if at the end of 2010, news sources stated the presence of Indian products on the market in the share of no more than ...%, then at present the share of Indian manufacturers in market of implants for surgery is at least ...% of the market volume in monetary terms, and by the end of 2018, it is predicted that Indian products will meet the demand of at least ...% of the market.
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Diagram 3. The volume of Indian production of medical implants for surgery, million Rs., 2015 - 2017, forecast for 2018
 

It should be noted that the “wave” of growth in Indian production took place against the background of new enterprises in the industry reaching their design capacity, such as, for example, LLC XXXXX (...), as well as the organization of new enterprises in the industry. For example, the new enterprise XXXXXX LLC (...), produced the first products in 2017, as well as XXXXXX LLC (....) and XXXXX LLC, ..., which released the first products in 2018 G.
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1.4 Share of exports in production
Consider the volume of exports of Indian medical implants for surgery based on accounting data from the Federal Customs Service
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At the end of 2015, the main export destinations were ... with a share of ...% (in total - $ ... thousand), ... with a ...% share ($... thousand) and .. with a share of ...% ($... thousand).
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If earlier export volumes in ... did not even reach ...%, then by the end of 2017 it is the leader in terms of export volumes with a share of ...% (in total, this amounts to $ ... thousand). In second place in terms of exports is ... with a share of ...% ($ ... thousand) and in third place is Kazakhstan with a share of ...% ($ ... thousand).
In connection with the sharp redistribution of the export structure, it can be noted that such changes are not the first to occur. They are conditioned, first of all, by the political situation. For example, in 2013 the first place in terms of exports of products for orthopedics and implants (in aggregate) was ... with the amount of purchases of $... thousand and a share of ...% of exports.
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1.5 Market share of imports
The almost complete absence of the Indian production of medical implants for surgery has intensified the activities of importers that meet the needs of Indian medicine. For clarity, let's consider the total volume of export-import operations with medical implants for surgery over the past three years. 
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According to the results of calculations, the share of imported products of the ""Medical Implants for Surgery"" group in the Indian market is ...% (2017 data), the situation is graphically reflected in Diagram 9.
 
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An import-oriented model has formed in the Indian market for medical implants for surgery, the majority of the market is made up of products from foreign manufacturers. The volume of import supplies is more than ... times higher than domestic production in 2017. The trade balance is consistently negative. 

1.6 Dynamics of the market volume and capacity in 2015-2017
Consider the dynamics of the volume and capacity of the market for medical implants for surgery.
The market capacity is determined on the basis of actual statistical data. This is the minimum market capacity currently available, due to economic difficulties in the country and barriers to the introduction of implantation into everyday medicine of the compulsory health insurance system, which constitutes a significant proportion of customers.
The real volume of the market of medical implants for surgery over the past three years has grown in monetary terms by a little more than ""plus"" ...%, and in 2018 it is forecasted to grow by another ""plus"" ...%.
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1.7 Market structure:
1.7.1 by Type of Medical Implants for Surgery
To identify the market structure by types of medical implants for surgery, we will analyze the information available in open sources - mainly the results of public procurement, as well as the reporting of issuers and calculate the share of the volume in monetary terms.
In general, market analysis shows that the share (in monetary terms) of screws of various types is approximately ... times greater than the sum of plates purchased in the aggregate. 
The shares of purchased plates most likely reflect the statistics of injuries (fractures), since the largest share of plates is for the humerus and radius, it can be concluded that in fact such injuries are more common.
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1.7.2 by sales channels (through government auctions/other channels)
An analysis of information provided in open sources by existing market operators shows that the vast majority of products are purchased through public procurement.
A picture of the structure of sales channels for medical implants for surgery is formed in Diagram 15.
An analysis of the sales structure confirms that public procurement is a priority for product promotion. 
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Part 2: Competitor Analysis
2.1 Major players in the market
Among the largest players in the market of medical implants for surgery in India, both foreign and Indian manufacturers can be noted.
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Recently, Chinese companies have been actively entering the Indian market, known in general for their aggressive marketing policy and the ability to rapidly capture a significant market share:
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As for Indian manufacturers, among the undoubted leaders of the industry in terms of revenue in monetary terms, one can note the companies XXXXXX LLC, XXXXXX LLC, XXXXX LLC, XXXXX LLC.
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2.2 Market shares of the largest competitors
Let's consider the official data on the volume of revenue of the main market operators, analyze its structure, and also use the data of official customs statistics based on the results of 2017 and calculate the market shares of the largest competitors.
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There are four Indian manufacturers with significant market shares at the end of 2017, as well as traditional leaders from among foreign suppliers - ...
Indian companies have approximately equal market shares, but it should be taken into account that the company ""XXXXX"" achieved the current sales volumes in a much shorter time than other Indian manufacturers. This company has serious growth potential.

2.3 Pros and cons of the biggest competitors
All leading foreign manufacturers of medical implants for surgery, in addition to the high quality of products, can be characterized by one key phrase - ""An integrated approach to the problems of traumatology and surgery."" This is the main and significant advantage of foreign manufacturers.
The downside is only the price and a little more complicated logistics than for Indian manufacturers.
Consider some features of the activities of foreign companies - competitors, which are their advantages.
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Part 3. Analysis of the state. trading in 2017 (start date, end date, region, list of purchased products, initial contract amount)
Consider a sample of tenders held by state medical institutions in 2017, the subject of which was exclusively products for osteosynthesis.
The analysis of the conducted public tenders shows that the percentage of decline in this nomenclature ... . Purchases are carried out mainly at a price close to that declared as the original one. At the same time, almost every competition is completed with products from several manufacturers, and the winners are intermediaries, companies involved in complex supply. 

Part 4. Consumption forecast until 2022
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Part 5. Recommendations and conclusions
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Diagrams

Diagram 1. Dynamics of GDP growth in India, 2012 - 2018, % to the previous year
Diagram 2. The dynamics of the US dollar against the rupee, 2015 - 2018, Rs. for 1 US dollar
Diagram 3. The volume of Indian production of medical implants for surgery, million Rs., 2015 - 2017, forecast 2018
Diagram 4. The volume of exports of medical implants for surgery of Indian production, million Rs., 2015 - 2017, forecast for 2018
Diagram 5. The structure of exports of medical implants for surgery of Indian production, TN VED code 90211090, shares of volumes in monetary terms, 2015
Diagram 6. The structure of exports of medical implants for surgery of Indian production, TN VED code 90211090, shares of volumes in monetary terms, 2017
Diagram 7. The structure of exports of medical implants for surgery of Indian production, TN VED code 90211010, shares of volumes in monetary terms, 2017
Diagram 8. The volume of imports of medical implants for surgery of Indian production, million Rs., 2015 - 2017, forecast for 2018
Diagram 9. Share of imported medical implants for surgery in the Indian market, 2017
Diagram 10. The structure of imports of medical implants for surgery by regions - recipients, shares of volumes in monetary terms, 2017
Diagram 11. The structure of imports of medical implants for surgery of Indian production, TN VED code 90211090, shares of volumes in monetary terms, 2015
Diagram 12. The structure of imports of medical implants for surgery of Indian production, TN VED code 90211090, shares of volumes in monetary terms, 2017
Diagram 13. Dynamics of the volume and capacity of the market for medical implants for surgery, 2015 - 2017, forecast for 2018, million Rs.
Diagram 14. Market structure by types of implants, 2017
Diagram 15. Structure of sales channels for medical implants for surgery
Diagram 16. Shares of the largest competitors in the market of medical implants for surgery, 2017
Diagram 17. Forecast of consumption of medical implants for surgery in India until 2022

Tables

Table 1. GDP growth rates for a number of positions, % to the previous period
Table 2. Structure of production components in GDP, 2017 – 2024
Table 3. Indian Industrial Production Index (% of previous year), 2008-2017
Table 4. Attracted investments in the ""Production of materials used for medical purposes"", by type of source, million Rs., 2015 - 2017
Table 5. Forecast of investments in fixed assets, % of the previous period
Table 6. STEP analysis of factors influencing the entry of a new supplier of imported products into the Indian market of medical implants for surgery
Table 7. Enterprises - manufacturers of medical implants for surgery, India
Table 8. Organizations selling imported products for osteosynthesis in India (selection)
Table 9. A selection of state materials. trading, 2017