Hearing Instrument Markets to Hit $5.6 Billion Driven By Evolving Industry Dynamics

SAN JOSE, Calif./PRNewswire/ -- The increasing popularity of technologically advanced and higher-priced hearing instruments is fueling rapid revenue growth in specific market segments of the U.S. hearing instrument industry. Thus, manufacturers are focusing on the promotion of
programmable analog and digital signal processing (DSP) instruments.

New strategic analysis by the healthcare group at Frost & Sullivan (www.healthcare.frost.com ), U.S. Hearing Instrument and ABR/OAE Analyzer Markets, indicates the total market for hearing instruments reached $2.6 billion in 2000 and could reach $5.6 billion by 2007, as the market structure begins to evolve.

'A rash of mergers and acquisitions among hearing instrument makers has resulted in a more consolidated marketplace,' says Charlie Whelan, Frost & Sullivan medical device industry analyst. 'While the long-term effects of industry consolidation are likely to be positive, economies of scale could allow manufacturers to lower product prices and deliver new technologies to end-users much sooner.'

At the same time, increasing demand for screening is boosting ABR/OAE analyzer markets. Hearing impairment is the most common congenital defect in children, and can go undetected for years, delaying language and social skill development. Public health organizations and state governments are leading campaigns to require hospitals to screen all babies for hearing loss before they can be discharged.

Thirty-four states and the District of Columbia have already passed laws mandating newborn testing, and legislation is pending in several other states as well. Total revenues for the ABR/OAE analyzer market surpassed $28 million in 2000 and could near $37 million by 2007.

'Because ABR and OAE analyzers do not require active responses, as conventional audiometry devices do, they are logical solutions for testing newborns,' says Whelan

Frost & Sullivan presents the 2001 Marketing Engineering Awards to companies that have worked diligently to make a positive contribution to the hearing instrument and ABR/OAE analyzer industries. These awards for the hearing instrument market are presented to: GN, Siemens, Songbird Hearing, and Sonic Innovations. The award for the ABR/OAE analyzer market is presented to SonaMed.

Frost & Sullivan is a global leader in international strategic market consulting and training. This ongoing research is part of the frost.com Medical Devices Monitor Service, which includes market analyses on the U.S. Orthopedic Joint Implant Markets and the U.S. Markets for Oxygen Therapy Devices. Frost & Sullivan also offers custom consulting to a variety of
national and international companies.

U.S. Hearing Instrument and ABR/OAE Analyzer Markets

Study: 7996-54