In
Latin America, 4% to 6% of the population is affected by a disabling hearing
loss, whereas the rates among North American and European countries are between
2% and 4%, according to World Health Organization estimates. There are
approximately 32 million people in Latin America who suffer from mild to severe
hearing loss, making up about 9% of the world’s total hearing impaired
population.
To
address this issue, some countries like Brazil have a public health care
program that provides free-of-charge hearing health care services, including
diagnosis, treatment, hearing aid distribution, and rehabilitation. However,
poor socioeconomic conditions and geographical differences slow down the
overall development of hearing healthcare across the region. Current short-term
awareness campaigns and the limited number of initiatives by associations and
government organizations are insufficient to improve adoption rates.
Low Penetration Rates
The
largest segment of the Latin American market for hearing devices is the market
for hearing aids, accounting for approximately 750,000 hearing aids sold
annually. According to a new report published by iData Research entitled Brazilian
Market for Hearing Devices and Batteries, 2015 will see a large proportion of
the overall hearing aids sold in Brazil, which represents almost 50% of the
entire Latin American market. These numbers reveal how underdeveloped the Latin
American market is compared to the U.S., where more than 3 million units are
sold on an annual basis.
Relatively
low hearing aid usage penetration rates are seen in most developed countries.
These rates are even lower in Latin America. In Denmark, where three of the
biggest hearing aid manufacturers are based, the adoption rate is approximately
45%. In Europe and the United States, the rates are slightly higher than 22%.
But in Brazil, the largest country in Latin America and consequently the
biggest Latin American market, only 5% of the hearing-impaired population is
using hearing aids. Mexico, the second largest country in Latin America, has a
slightly better estimated penetration rate at approximately 9%.
Public Sector As A Market
Driver
The
public market and government reimbursement plans are some of the biggest
drivers for the Latin American hearing device market. Public health care
policies help fulfill the need for diagnosis, treatment, and device donations.
Specifically,
the majority market share for hearing devices in Brazil, Colombia, and Chile is
in the public sector. In Brazil, for example, costs for hearing devices and
implants are usually borne by the government.
In 2014, the Unified Health System (Sistema Único de Saúde, or SUS),
which is the Brazilian public healthcare network, is expected to provide
hundreds of thousands of hearing aids and conduct the majority of all cochlear
implant fittings.
Additionally,
in June 2014, the Brazilian Ministry of Health published an ordinance to
incorporate bone-anchored procedures into the SUS, based on the recommendation
report of the National Commission for Incorporation of Technology in SUS (Comissão
Nacional de Incorporação de Tecnologias no SUS, or CONITEC). As a result, the
bone-anchored hearing aid market in Brazil is expected to experience
double-digit growth through 2021.
Nevertheless,
the government cannot ensure adequate treatment coverage for the
hearing-impaired population in the long term. There is no expectation that the
number of devices provided by the public sector will increase significantly;
growth rates will continue to be lower than the rates in the private sector.
That being the case, hearing health in most of Latin American countries remains
highly vulnerable to the changes in government policies and investments.
Lack Of Awareness Remains A
Limiting Factor
The
rate of hearing aid adoption is still very limited due to a general lack of
knowledge and awareness. It is estimated that hearing-impaired individuals wait
nearly 10 years on average before seeking treatment after their initial
diagnosis. Hearing aid adoption is more frequent in patients with moderate to
severe hearing loss.
Aesthetic
concerns also contribute to the low rate of adoption. Many patients avoid
hearing aids in order to conform to perceived social pressures. Despite the
many new hearing aid styles and discreet designs, some still regard hearing
aids as a symbol of advanced old age and incapacity. These attitudes and
concerns will continue to limit overall hearing aid market growth.
In
an attempt to change this perception, the hearing aid industry has been
promoting campaigns and initiatives to raise patient awareness. Some
manufacturers feature hearing centers dedicated to providing information,
education, screening, counseling, support, and technology solutions for people
with hearing loss. However, more needs to be done. Larger and longer-term investments
can only be made by associations or government organizations.
Holding Groups Lead Latin
American Hearing Device Markets
Large
holding companies operating within the hearing device market have a strong
influence in Latin America. Each holding company owns several individual brands
in various market segments. These include the Sonova Group, William Demant
Holding Group, and GN Store Nord.
Sonova
operates out of Switzerland and holds the Phonak, Argosy, Unitron, and Advanced
Bionics hearing aid brands. William Demant operates out of Denmark and holds
the Oticon, Oticon Medical, Sonic, and Bernafon hearing aid brands. GN Store
Nord also operates out of Denmark and holds the ReSound, Beltone, and Interton
hearing aid brands. Other notable competitors in the hearing market include
Cochlear, MED-EL, Siemens, Starkey, and Widex.
Each
brand is often regarded as a separate entity, but as a group, they can usually
offer a complete solution for clinics. Trading premium hearing products like
implantable devices, audiometers, tympanometers, and otoacoustic emissions
analyzers coupled with hearing aids, holding companies can offer more
attractive bundles with a significantly lower average selling price.
Sonova
Group leads the Brazilian hearing aid market with the Phonak brand. Today,
Brazil is one of Sonova’s top 10 markets by revenue. The country accounts for
approximately 4% of group sales, with strong double-digit sales growth in local
currencies.
Know more in details:
Brazilian
Market for Hearing Devices and Batteries - 2015, visit at: http://mrr.cm/43N
