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MedTech Outlook | Monday, August 08, 2022
Demographic and economic trends and the sheer quantity of unmet requirements in emerging nations provide the world's largest untapped opportunity for advanced wound care products and services.
FREMONT, CA: As the advanced wound care industry in North America has flourished over the past two decades, the vast majority of major wound care product and service providers, which are predominately headquartered in these countries, have made very little investments in the poor world.
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The epidemic of complex wounds in the industrialized world is far from ending, and it will continue to be a high-growth healthcare opportunity for decades. New market entrants, insurance consolidation, increasingly burdensome documentation requirements, commoditization, and market saturation of certain product types, combined with overall pressures to reduce healthcare costs, have impacted per-unit/per-patient profitability in the West, despite growth in the total market. Future trends in risk-sharing, prevention, and bundled payments will further threaten the profitability of wound care in developed countries.
Moreover, aging populations, wound-related comorbidities, rising purchasing power, and an overall need for sophisticated healthcare in emerging and frontier markets have created enormous prospects for specialist wound care in these regions. Of course, specific challenges and obstacles arise as well. Nonetheless, demographic and economic trends and the sheer quantity of unmet requirements in emerging nations constitute the greatest untapped opportunity for enhanced wound care products and services worldwide.
In the United States alone, there are 6 to 7 million complex wounds, an $8 billion to $15 billion market for advanced wound care products, and a $40 billion to $60 billion market for wound management-related services. So why should executives and investors consider deploying resources in emerging and frontier markets?
Diabetes
Although statistics on the frequency of advanced wounds in emerging markets are frequently fragmented and inconsistent, chronic diseases such as diabetes are significantly linked to non-healing injuries and amputations in any particular population. The massive development in relative and absolute diabetes prevalence in regions dominated by emerging and frontier markets is a credible indicator of the enormous and expanding prospects for enhanced wound care in these locations.
Smoking
Despite an overall decline in smoking in developed markets, 80 percent of the world's 1 billion smokers reside in low- and middle-income countries. Smoking rates increased by double digits in dozens of developing countries. In Indonesia alone, there are 70 million smokers, a rise of approximately 30 percent over the past 15 years. During the same time frame, the percentage of smokers in Jordan increased from 25 percent to 40 percent. Similarly, rates in Bahrain grew from 12 to nearly 30 percent and Cameroon from 7 to 22 percent. The CDC reports that smoking rates in developing countries are rising at a pace of 3.4 percent per year.
As everyone who has worked in wound care services knows, smoking (and the resulting cardiovascular and pulmonary consequences) is one of the most challenging clinical obstacles wound care providers confront. There are several ways to balance wound bed moisture, reduce microbial counts (infections), raise albumin/prealbumin levels, and control blood glucose in most patients. But smokers' damage to their bodies ability to deliver oxygen to healing tissue is extremely difficult to reverse, both short- and long-term. Noninvasive methods to enhance tissue perfusion are only successful if the underlying vascularization is sufficient. However, invasive revascularization methods are both medically and monetarily complicated. In this way, the massive and rising smoking rates in many developing nations contribute to both the clinical issues and the financial prospects for enhanced wound care in these markets.
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