report
7.4.1 Market description

The amount of new products in the research pipeline for the orthopaedic biomaterials market is expanding rapidly. Important topics among others include stem cells, bone growth factors, gene therapy, synthetic bone fillers, bioactive implant coatings and biopolymers. Further market growth is expected for the next couple of years. The most important sector is orthobiologics which includes bone growth factors and the proteins segment. These products were estimated to grow from a few percent of the orthopaedic biomaterials market in 2002 to a market share between 25-30% by 2007. This product segment introduces lots of new players to the market, namely pharmaceutical and biotech companies^[13].

High quality standards in manufacturing processes and professional marketing and sales are key elements to increase market shares and penetration for the leading orthopaedic companies. However, they also need a strong pipeline of new technologies and products. Therefore a close co-operation with the biotech industry could be of advantage. The biotech industry and small orthopaedic technology companies do not have the market presence to compete with the leaders in the orthopaedic industry. Therefore, both sectors need each other.

Presently the market for osseous graft substitutes as part of the biomaterials market, in particular for spinal applications, is the fastest growing sector in the orthopaedic area. According to an analysis of the management consultancy Frost and Sullivan a total turnover of  $39.5 million was gained in 2003 in Europe from osseous graft substitutes^[14]. Continuous innovation should let the market grow to $114.9 million until 2010.