Strategic Analysis of the European Advanced Wound Management Market

London, UK - 10th January, 2004 

Spurred by product innovation, rising acceptance by healthcare decision-makers and the prospect of enhanced clinical and cost efficiencies, the European advanced wound management market is rapidly expanding. This is being paralleled by a decline in the traditional wound management market.

According to Frost & Sullivan , the USD 544.4 million advanced wound management market is forecast to grow at a healthy compound annual growth rate (CAGR) of 12.4 per cent over the period 2004 to 2010 to reach USD 1,229.4 million.

Continued research and development efforts in the three main product segments - moist, antimicrobial and biomaterial-based - is set to boost the efficiency and reduce costs within the advanced wound care market. This, in turn, is projected to encourage more widespread application of such products. At the same time, technological advances are set to promote a range of innovative new, next-generation solutions comprising tissue-engineered wound management products.

Europe is the global leader in the use of moist wound dressings. In 2003, the European moist wound dressings segment generated USD 483.55 million with hydrocolloids and foams dressings contributing the bulk of revenues with substantially more modest amounts being accounted for through the sales of alginates dressings and hydrogels.

Driven by new products, the moist wound dressings segment is poised to grow at a CAGR of 9.95 per cent during the period 2003 to 2010 to amass USD 915.6 million. However, the expansion of this market segment is likely to be constrained by the rising uptake of antimicrobial and tissue-engineered advanced wound management dressings.

Over the long term, the revenue share of the leading regional revenue contributor - the United Kingdom - is projected to dip, even as the Italian and Spanish markets are set to experience above average growth rates.

Rising concerns regarding infected wounds, and heightened awareness about the benefits of incorporating silver into wound dressings in terms of reduced healing time and lowered risk of infection are likely to be a key growth driver in the antimicrobial dressings market. Comparatively, high costs of antimicrobial dressings are likely, however, to constitute a major challenge.

Relatively small in comparison to other segments in the advanced wound management market, the antimicrobial dressings market is, nevertheless, poised for significant growth. Growing at an estimated CAGR of 25.9 per cent over the period 2003-2010, revenues are anticipated to expand from USD 35.4 million to USD 176.4 million.

At nearly USD 25.4 million, the European biomaterials-based wound dressings market is limited in size. "The market is currently being developed and the major restraining factor is the lack of reimbursement due to the high costs of these products," comments Tanya Pullen, Programme Manager Medical Devices from Frost & Sullivan. "There is also the need for further R&D and further evidence of clinical efficacy if products such as tissue-engineered skin grafts are to penetrate the area of chronic wound care."

In 2003, Johnson & Johnson's growth factor, Regranex contributed a small share of revenues. The sales of hyaluronic acid continued to record low sales with the skin substitutes market also being very undeveloped.

However, the outlook is more promising. Overall market revenues are likely to increase significantly in 2004, mainly as a result of the launch of Johnson & Johnson's matrix dressing - Promogran. This product has achieved reimbursement status in certain countries, and is projected to become the first biomaterial-based dressing to make significant gains in Europe.

Rising sales of Promogran together with the anticipated introduction of similar competing products is likely to underpin a CAGR of 27.5 per cent over the period 2003 to 2010 culminating in a market value of USD 137.3 million. Italy is currently the largest market in this segment due to the presence of Fidia Advanced Biopolymers in tissue engineering. Its dominance is likely to be challenged by France, Germany and the United Kingdom.

For leading participants in the advanced wound care dressings market including Smith & Nephew, ConvaTec, Johnson & Johnson, Coloplast Group and Mölnlycke Health Care, competitive success will hinge on certain key factors.

"Continued growth in the overall market is likely to be affected by the ability to establish the efficacy of tissue-engineered products as well as the ability to educate the medical community on the need to adopt new technologies," explains Pullen. "At the same time, reduction in treatment costs and the skill to effectively manage the reimbursement and regulatory process will be essential to the sustained expansion of the advanced wound management market."

If you are interested in an analysis overview providing an introduction into the Strategic Analysis of the European Advanced Wound Management Market - then send an email to Katja Feick - Corporate Communications at katja.feick@frost.com with the following information: Full name, Company Name, Title, Contact Tel Number, Email. Upon receipt of the above information, an overview will be emailed to you.


Title : Strategic Analysis of the European Advanced Wound Management Market
Code: B439

(Ref : http://MedicalDevices.frost.com)