The global tissue engineering market seems to be a very lucrative, attractive, and profitable market, both for existing as well as new entrants. At the same time, intense rivalry among existing competitors has been observed. Our analysis revealed that market players had adopted different strategies to increase their business and position in the global tissue engineering market. In recent years, strategic movements by major players were product launches, acquisitions, and approvals, which have been used as market penetration strategies and to reduce competition. The major players in the global tissue engineering market are Stryker, Zimmer, Medtronics, DePuy Synthes, Baxter, Acelity, Cook Medical and others.
Companies are now entering into acquisitions to neutralize growing competition from customers, competitors, and to tackle the changing market dynamics.
There are numerous players operating in this market all over the globe. Most of these players exist in the American and European regions. There are a lot of large and small market players available in the market which provide a wide range of products for various applications. As there are many large and small players in the market, the market shares of these players are much differentiated. Some of the major players who provide tissue engineering products include Stryker, Allergan, Medtronic, Zimmer, Baxter International, Integra LifeSciences, Organovo Holdings Inc., Cook Medical, DePuy Synthes, Acelity and others.
Stryker, Zimmer, Medtronics, DePuy Synthes, Baxter, Acelity, Cook Medical, are top players in the global tissue engineering market, contributing all most 78.3% of the total global market.
Bargaining Power of Suppliers
The bargaining power of the suppliers estimates how easy it is for the suppliers to influence the prices of the tissue engineering market. The market impact of the supplier’s bargaining power is considered to have a medium level impact. Businesses must obtain the necessary resources that they need from the resource suppliers to carry out their activities. The price of tissue engineering products is determined by the interaction between the suppliers and the end users. The number of suppliers serving the tissue engineering market is high as compared to the number of tissue engineering manufacturing firms operating in the sector, while the competition among the suppliers is high due to the high value of the transaction. Thus, the firms have a strong position due to lower switching cost relative to the suppliers. The factors favoring the suppliers are the high degree of differentiation and high quality of inputs used in the manufacturing of tissue engineering products, which reduces the chances of a reliable and quality supplier being substituted.
Bargaining Power of Buyers
The bargaining power of the buyers assesses how easy it is for the buyers to affect the price of tissue engineering. The bargaining power of the buyer will be low for tissue engineering as the tolerance for substandard products and substitutes is less due to the critical role of the tissue engineering products. The tissue engineering market is a consolidated market with the buyers to firm concentration ratio being low which reduces the power of the buyers. The factors in favor of the buyer are, the rising availability of information to the buyers, increasing penetration of insurance, rising government incentives and reimbursements, and the rising price sensitivity of the buyers.
Threat of New Entrants
Threat from new entrants is low. The tissue engineering market is a specialized market with high growth potential and requiring high technological knowledge. The tissue engineering market is also highly sensitive to technological advancements and disruptive innovations. Development of any novel tissue engineering with even a small advantage over existing products will have a disastrous effect on the existing players. The tissue engineering industry has a high capital and research intensity which raises the bar for market entry with the capital investment in technology being very high. The tissue engineering market also needs highly skilled manpower. The research intensity and higher intellectual property utilized in the industry makes a new technology highly disruptive of existing technology and players.
Threat of Substitutes
The threat of substitutes is medium to high for the tissue engineering market. The threat from the substitutes arises when the customers or the buyers in the market can achieve the end-result using other means excluding the concerned market. Tissue engineering has poor alternatives in the form of synthetic implants. Synthetic implants and artificial products cannot challenge the application of tissue engineering either the huge future potential of tissue engineering. However, if the event of the development of any threat of a substitute it will affect the existing players to a high degree. Thus, product development of these alternatives possesses a significant risk to the tissue engineering market.
Intensity of Rivalry
Degree of competition is considered to have a high impact on the market. The intensity of competitive rivalry evaluates the capability and the level of rivalry among competitors in the market. It also refers to the extent to which firms within a market put pressure on one another and limit each other’s profit potential. Industries strive for a competitive advantage over their rivals, and the intensity or rivalry varies across industries. Rivalry among market players can affect market profits through downward pressure on prices, increased innovation, increased advertising, and increased service/product improvements, among others. So, the intensity of rivalry is high.
