European cardiac rhythm management market -- a new study by Frost & Sullivan
Sizeable Niche Markets Set for Exploitation
The treatment options for patients suffering from congestive heart failure (CHF) and atrial fibrillation (AF) are about to get much wider. Several companies have been developing new devices based on existing pacemaker and implantable cardioverter defibrillator (ICD) technology.
The new devices will be used to help cardiologists to improve treatment options for patients with some forms of CHF and AF, as current therapies have limited clinical effectiveness. Both conditions affect large patient populations, and consequently this new technology is expected to significantly increase the demand for pacemakers, pacemaker leads and some ICDs, through the exploitation of niche markets. These developments, along with an increasingly aged population, should move the European Cardiac Rhythm Management Market into a new growth phase over the next five years.
The current market, which has been fairly stable in recent years, was worth around $780 million in 2000, according to new research by international market consultancy, Frost & Sullivan. Kate Lawrence, Research Analyst with the company believes that the introduction of pacing devices with new indications should see this figure rise to over $1.1 billion in 2007, with an annual compound growth rate of 5.5 percent.
The highest level of growth will be seen in the ICD market, as this product segment has not yet reached maturity. The high cost of these devices means that therapy acceptance has been slow, despite their proven efficacy in preventing sudden cardiac death. However, as their average selling price has fallen, demand has increased, and growth is expected to continue at a steady rate over the forecast period. Nevertheless, there are still considerable regional variations in implantation rates across Europe, and these are discussed in depth within the report.
The post-war 'baby boomer' generation is one of the main drivers in this market. The majority of pacemakers and ICDs are implanted into patients over 60 years, who represent 20 percent of the total population. This is expected to rise to 25 percent in 2020, leading to a higher incidence of cardiovascular disease. The unhealthy European lifestyle should also boost sales over the forecast period (2000-2007). Smoking, obesity, high levels of alcohol consumption, lack of physical exercise and cholesterol levels all contribute to heart disease, and unless people start making drastic lifestyle changes, more people will require pacemaker or ICD implants.
Although advances in technology are set to expand the market potential, they could also damage the market, as e-commerce is likely to further contribute to price erosion. It is likely that the majority of European hospitals will use the Internet to purchase at least some of their supplies by the end of the forecast period, as this should help to make transactions faster, logistics more efficient and spending more centralised. In turn this is likely to lead to price decreases, which will have a negative impact on market revenues. However, the introduction of new pacing devices should help to sustain price levels, as they will be more expensive than standard pacemakers.
The European cardiac rhythm management market is dominated by five main companies: Medtronic, Guidant, St Jude Medical, Biotronik and ELA Medical. Medtronic are particularly strong across Europe, as they are at the forefront of new technological developments in this area. Guidant and St Jude Medical also hold strong positions in the market as a result of new and innovative product developments.
Germany is the largest market overall in Europe, primarily because it has the biggest population, although it is also due to the fact that Germany has an efficient healthcare system, which is very receptive to new technology. France is the second largest market for pacemakers and pacemaker leads. However, ICDs are not widely reimbursed in France and implantation rates are low. Italy is the second biggest market, as a result of a successful initiative to increase the acceptance of ICD therapy. This report also considers the impact of NICE's recommendations on the UK market for ICDs, which look set to treble the demand for these devices over the forecast period.
Source: Frost & Sullivan