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Albany, NY (PRWEB) July 15, 2014
A power tool is a key instrument in the armamentarium of the operating room for many orthopedic surgeries. The adoption rates for orthopedic power tools vary in different regions, mainly due to price sensitivity. Globally, and driven by the orthopedic industry's continued innovation in cordless battery-powered systems as well as a better understanding of corded systems downsides, the usage of pneumatic-powered tools has been declining in the past decade as surgeons adopt premium-priced electric and, more significantly, battery-powered systems. In contrast, in developing countries, electric- and pneumatic-powered tools currently represent highly valued equipment for orthopedic surgeons; moreover, this equipment should continue to remain important, especially in light of the developing countries healthcare systems that cannot bear the substantial costs associated with capital equipment upgrades. Yet, a slow shift to battery-powered systems will still occur in these emerging economies, as players introduce the new-generation systems into these countries in the coming years and invest heavily in marketing and promotion.
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Moving forward, industry consolidation and intense competition in the orthopedic power tools market will cause more and more companies to increase their research efforts to differentiate their products from the lower-end competitors. Instead of focusing on the capital equipment, players are expected to shift their marketing efforts to high-margin consumables. By implementing a consumables-based recurring-revenue business model, companies are able to establish a stable revenue stream while driving handpiece or capital equipment placements via capital sales and/or rentals. Meanwhile, it is equally important for companies to seek new revenue streams as delays in capital equipment purchases weaken the revenue growth.
GlobalData analyzes large bone, small bone, and high-speed power tools segments in this report. Within each segment, the adoption level and sales unit of battery-, electric-, and pneumatic-powered systems, and the revenue stream from capital equipment sales, consumables sales, and repair service are tracked and estimated based on GlobalDatas primary and secondary research.
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