MEXICAN MARKET FOR HEARING DEVICES AND BATTERIES · MEXICAN MARKET FOR HEARING DEVICES AND BATTERIES iDATA_MXHD15_RPT Published in December 2014 By iData Research Inc., 2014 iData

MEXICAN MARKET FOR HEARING DEVICES AND BATTERIES

iDATA_MXHD15_RPT

Published in December 2014

By

iData Research Inc., 2014

iData Research Inc. Suite 308 – 4211 Kingsway Burnaby, British Columbia,

Canada, V5H 1Z6

Tel: (604) 266-6933 Fax: (604) 266-6934

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TABLE OF CONTENTS

© iData Research Inc., 2014 i

T A B L E O F C O N T E N T S

TABLE OF CONTENTS ............................................................................................................... I

LIST OF FIGURES ...................................................................................................................... V

LIST OF CHARTS..................................................................................................................... VII

EXECUTIVE SUMMARY ............................................................................................................ 1

1.1 MEXICAN MARKET FOR HEARING DEVICES AND BATTERIES ...................................................... 1

1.2 GROWTH TRENDS BY SEGMENT ................................................................................................... 2

1.3 HEARING AIDS BY STYLE ............................................................................................................ 3

1.4 HEARING AIDS BY CIRCUIT ......................................................................................................... 4

1.5 BONE-ANCHORED HEARING AID MARKET .................................................................................. 5

1.6 COCHLEAR IMPLANT MARKET .................................................................................................... 6

1.7 HEARING AID BATTERY MARKET ............................................................................................... 7

1.8 COMPETITIVE ANALYSIS ............................................................................................................. 8

RESEARCH METHODOLOGY.................................................................................................. 9

2.1 RESEARCH SCOPE ........................................................................................................................ 9

2.2 IDATA’S 9-STEP METHODOLOGY ................................................................................................ 9

2.2.1 Step 1: Project Initiation & Team Selection............................................................................ 9

2.2.2 Step 2: Prepare Data Systems and Perform Secondary Research ......................................... 11

2.2.3 Step 3: Preparation for Interviews & Questionnaire Design ................................................. 12

2.2.4 Step 4: Performing Primary Research ................................................................................... 13

2.2.5 Step 5: Research Analysis: Establishing Baseline Estimates ................................................ 15

2.2.6 Step 6: Market Forecast and Analysis ................................................................................... 16

2.2.7 Step 7: Identify Strategic Opportunities ................................................................................ 18

2.2.8 Step 8: Final Review and Market Release ............................................................................ 19

2.2.9 Step 9: Customer Feedback and Market Monitoring ............................................................ 20

TABLE OF CONTENTS

© iData Research Inc., 2014 ii

MEXICAN MARKET FOR HEARING DEVICES AND BATTERIES OVERVIEW ........ 21

3.1 INTRODUCTION .......................................................................................................................... 21

3.1.1 Standard Hearing Aids .......................................................................................................... 21

3.1.2 Hearing Aid Batteries ............................................................................................................ 21

3.1.3 Implantable Hearing Aids ..................................................................................................... 22

3.2 CURRENCY EXCHANGE RATES .................................................................................................. 23

3.3 MARKET OVERVIEW .................................................................................................................. 24

3.4 TREND ANALYSIS BY SEGMENT ................................................................................................. 28

3.5 DRIVERS AND LIMITERS ............................................................................................................ 30

3.5.1 Market Drivers ...................................................................................................................... 30

3.5.2 Market Limiters ..................................................................................................................... 30

3.6 COMPETITIVE ANALYSIS ........................................................................................................... 32

3.7 HOLDING COMPANIES AND BRAND OWNERSHIP ....................................................................... 37

3.8 HERFINDAHL INDEX .................................................................................................................. 38

3.9 MERGERS AND ACQUISITIONS ................................................................................................... 40

HEARING AID MARKET ......................................................................................................... 41

4.1 INTRODUCTION .......................................................................................................................... 41

4.2 HEARING AID ADOPTION ........................................................................................................... 41

4.3 HEARING IMPAIRED POPULATION .............................................................................................. 42

4.4 MARKET OVERVIEW .................................................................................................................. 42

4.5 MARKET ANALYSIS AND FORECAST .......................................................................................... 46

4.5.1 Total Hearing Aid Market ..................................................................................................... 46

4.5.2 Public Hearing Aid Market ................................................................................................... 48

4.5.3 Private Hearing Aid Market .................................................................................................. 50


4.6.1 Market Drivers ...................................................................................................................... 52

4.6.2 Market Limiters ..................................................................................................................... 52

4.7 COMPETITIVE ANALYSIS ........................................................................................................... 53

HEARING AID MARKET BY STYLE ..................................................................................... 57

5.1 INTRODUCTION .......................................................................................................................... 57

TABLE OF CONTENTS

© iData Research Inc., 2014 iii

5.1.1 Traditional Behind-the-Ear ................................................................................................... 57

5.1.2 In-the-Ear .............................................................................................................................. 57

5.1.3 In-the-Canal ........................................................................................................................... 58

5.1.4 Completely-in-Canal ............................................................................................................. 58

5.1.5 Receiver-in-Canal .................................................................................................................. 58

5.2 MARKET OVERVIEW .................................................................................................................. 59


5.3.1 Traditional Behind-the-Ear Hearing Aid Market .................................................................. 63

5.3.2 In-the-Ear Hearing Aid Market ............................................................................................. 65

5.3.3 In-the-Canal Hearing Aid Market ......................................................................................... 67

5.3.4 Completely-in-Canal Hearing Aid Market ............................................................................ 69

5.3.5 Receiver-in-Canal Hearing Aid Market ................................................................................ 71


5.4.1 Market Drivers ...................................................................................................................... 73

5.4.2 Market Limiters ..................................................................................................................... 73

HEARING AID MARKET BY CIRCUIT................................................................................. 75

6.1 INTRODUCTION .......................................................................................................................... 75

6.1.1 Non-Programmable Analog .................................................................................................. 75

6.1.2 Basic Digital Signal Processing ............................................................................................ 76

6.1.3 Economy Digital Signal Processing ...................................................................................... 76

6.1.4 Mid-Level Signal Processing ................................................................................................ 76

6.1.5 Premium Digital Signal Processing....................................................................................... 76

6.2 MARKET OVERVIEW .................................................................................................................. 77

6.2.1 Unit Share by Circuit............................................................................................................. 77


6.3.1 Non-Programmable Analog Hearing Aid Market ................................................................. 82

6.3.2 Basic Digital Signal Processing Hearing Aid Market ........................................................... 84

6.3.3 Economy Digital Signal Processing Hearing Aid Market .................................................... 86

6.3.4 Mid-Level Digital Signal Processing Hearing Aid Market ................................................... 88

6.3.5 Premium Digital Signal Processing Hearing Aid Market ..................................................... 90


TABLE OF CONTENTS

© iData Research Inc., 2014 iv

6.4.1 Market Drivers ...................................................................................................................... 92

6.4.2 Market Limiters ..................................................................................................................... 92

BONE-ANCHORED HEARING AID MARKET .................................................................... 95

7.1 INTRODUCTION .......................................................................................................................... 95



7.3.1 Market Drivers ...................................................................................................................... 98

7.3.2 Market Limiters ..................................................................................................................... 98

7.4 COMPETITIVE ANALYSIS ......................................................................................................... 100

COCHLEAR IMPLANT MARKET ........................................................................................ 103

8.1 INTRODUCTION ........................................................................................................................ 103

8.2 MARKET ANALYSIS AND FORECAST ........................................................................................ 104

8.3 DRIVERS AND LIMITERS .......................................................................................................... 106

8.3.1 Market Drivers .................................................................................................................... 106

8.3.2 Market Limiters ................................................................................................................... 106


HEARING AID BATTERY MARKET ................................................................................... 111

9.1 INTRODUCTION ........................................................................................................................ 111

9.2 MARKET ANALYSIS AND FORECAST ........................................................................................ 112

9.2.1 Hearing Aid Battery Unit Sales by Style ............................................................................ 114

9.3 DRIVERS AND LIMITERS .......................................................................................................... 116

9.3.1 Market Drivers .................................................................................................................... 116

9.3.2 Market Limiters ................................................................................................................... 117


ABBREVIATIONS .................................................................................................................... 120

LIST OF FIGURES

© iData Research Inc., 2014 v

L I S T O F F I G U R E S

Figure 3-1: Currency Exchange Rate, Mexico, 2014 .................................................................................. 23

Figure 3-2: Hearing Device and Battery Market by Segment, Mexico, 2011 – 2021 (US$M) ................... 25

Figure 3-3: Hearing Device and Battery Market by Segment, Mexico, 2011 – 2021 (MXN M) ............... 25

Figure 3-4: Hearing Device and Battery Market Growth by Segment, Mexico, 2011 – 2021 .................... 28

Figure 3-5: Drivers and Limiters, Hearing Device and Battery Market, Mexico, 2014 .............................. 31

Figure 3-6: Herfindahl Index, Hearing Aid and Battery Device Market, Mexico, 2014 ............................ 38

Figure 4-1: Hearing Aid Market by Segment, Mexico, 2011 – 2021 (US$M) ........................................... 43

Figure 4-2: Hearing Aid Market by Segment, Mexico, 2011 – 2021 (MXN M) ........................................ 43

Figure 4-3: Total Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN) ........................................ 46

Figure 4-4: Public Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN) ....................................... 48

Figure 4-5: Private Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN)...................................... 50

Figure 4-6: Drivers and Limiters, Hearing Aid Market, Mexico, 2014 ...................................................... 52

Figure 4-7: Leading Competitors, Hearing Aid Market, Mexico, 2014 ...................................................... 55

Figure 5-1: Hearing Aid Market by Style, Mexico, 2011 – 2021 (US$M) ................................................. 59

Figure 5-2: Hearing Aid Market by Style, Mexico, 2011 – 2021 (MXN M) .............................................. 60

Figure 5-3: Traditional Behind-the-Ear Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN) ...... 63

Figure 5-4: In-the-Ear Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN) ................................ 65

Figure 5-5: In-the-Canal Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN) ............................. 67

Figure 5-6: Completely-in-Canal Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN) ............... 69

Figure 5-7: Receiver-in-Canal Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN) .................... 71

Figure 5-8: Drivers and Limiters, Hearing Aid Market by Style, Mexico, 2014 ........................................ 73

Figure 6-1: Hearing Aid Market by Circuit, Mexico, 2011 – 2021 (US$M) .............................................. 78

Figure 6-2: Hearing Aid Market by Circuit, Mexico, 2011 – 2021 (MXN M) ........................................... 79

Figure 6-3: Non-Programmable Analog Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN) .... 82

Figure 6-4: Basic Digital Signal Processing Hearing Aid Market, Mexico,

2011 – 2021 (US$ and MXN) .................................................................................................................... 84

Figure 6-5: Economy Digital Signal Processing Hearing Aid Market, Mexico,

2011 – 2021 (US$ and MXN) .................................................................................................................... 86

Figure 6-6: Mid-Level Digital Signal Processing Hearing Aid Market, Mexico,

2011 – 2021 (US$ and MXN) .................................................................................................................... 88

LIST OF FIGURES

© iData Research Inc., 2014 vi

Figure 6-7: Premium Digital Signal Processing Hearing Aid Market, Mexico,

2011 – 2021 (US$ and MXN) .................................................................................................................... 90

Figure 6-8: Drivers and Limiters, Hearing Aid Market by Circuit, Mexico, 2014 ..................................... 93

Figure 7-1: Bone-Anchored Hearing Aid Market, Mexico, 2011 – 2021 (US$ and MXN) ....................... 96

Figure 7-2: Drivers and Limiters, Bone-Anchored Hearing Aid Market, Mexico, 2014 ............................ 99

Figure 7-3: Leading Competitors, Bone-Anchored Hearing Aid Market, Mexico, 2014 ......................... 100

Figure 8-1: Cochlear Implant Market, Mexico, 2011 – 2021 (US$ and MXN) ........................................ 104

Figure 8-2: Drivers and Limiters, Cochlear Implant Market, Mexico, 2014 ............................................ 107

Figure 8-3: Leading Competitors, Cochlear Implant Market, Mexico, 2014 ............................................ 108

Figure 9-1: Hearing Aid Battery Market, Mexico, 2011 – 2021 (US$ and MXN) ................................... 112

Figure 9-2: Hearing Aid Battery Unit Sales Breakdown by Style, Mexico, 2014 .................................... 114

Figure 9-3: Drivers and Limiters, Hearing Aid Battery Market, Mexico, 2014 ........................................ 117

Figure 9-4: Leading Competitors, Hearing Aid Battery Market, Mexico, 2014 ....................................... 119

LIST OF CHARTS

© iData Research Inc., 2014 vii

L I S T O F C H A R T S

Chart 1-1: Hearing Device and Battery Market, Mexico, 2011 – 2021 ........................................................ 1

Chart 1-2: Growth Trends by Segment, Hearing Device and Battery Market, Mexico, 2011 – 2021 .......... 2

Chart 1-3: Units Sold by Style, Hearing Aid Market, Mexico, 2014 ............................................................ 3

Chart 1-4: Hearing Aid Market by Circuit, Mexico, 2014 ............................................................................ 4

Chart 1-5: Growth Rate Comparison of Select Metrics, Bone-Anchored Hearing Aid Market, Mexico,

2014 – 2021 ................................................................................................................................................. 5

Chart 1-6: Growth Rate Comparison of Select Metrics, Cochlear Implant Market vs. Hearing Aid Market,

Mexico, 2011 – 2021 ................................................................................................................................... 6

Chart 1-7: Unit Sales by Size, Hearing Aid Battery Market, Mexico, 2014 ................................................. 7

Chart 1-8: Leading Competitors, Hearing Device and Battery Market, Mexico, 2014................................. 8

Chart 3-1: Hearing Device and Battery Market by Segment, Mexico, 2011 – 2021 .................................. 26

Chart 3-2: Hearing Device and Battery Market Breakdown, 2014 ............................................................. 27

Chart 3-3: Hearing Device and Battery Market Breakdown, 2021 ............................................................. 27

Chart 3-4: Hearing Device and Battery Market Growth by Segment, Mexico, 2011 – 2021 ..................... 29

Chart 3-5: Leading Competitors, Hearing Device and Battery Market, Mexico, 2014............................... 35

Chart 3-6: Leading Competitors, Hearing Device and Battery Market, Mexico, 2014............................... 36

Chart 3-7: Herfindahl Index, Hearing Device and Battery Market, Mexico, 2014 ..................................... 39

Chart 4-1: Hearing Aid Market by Segment, Mexico, 2011 – 2021 ........................................................... 44

Chart 4-2: Hearing Aid Market Breakdown, Mexico, 2014 ........................................................................ 45

Chart 4-3: Hearing Aid Market Breakdown, Mexico, 2021 ........................................................................ 45

Chart 4-4: Total Hearing Aid Market, Mexico, 2011 – 2021 ...................................................................... 47

Chart 4-5: Public Hearing Aid Market, Mexico, 2011 – 2021 .................................................................... 49

Chart 4-6: Private Hearing Aid Market, Mexico, 2011 – 2021 ................................................................... 51

Chart 4-7: Leading Competitors, Hearing Aid Market, Mexico, 2014 ....................................................... 55

Chart 5-1: Hearing Aid Market by Style, Mexico, 2011 – 2021 ................................................................. 61

Chart 5-2: Hearing Aid Market Breakdown by Style, Mexico, 2014 .......................................................... 62

Chart 5-3: Hearing Aid Market Breakdown by Style, Mexico, 2021 .......................................................... 62

Chart 5-4: Traditional Behind-the-Ear Hearing Aid Market, Mexico, 2011 – 2021 ................................... 64

Chart 5-5: In-the-Ear Hearing Aid Market, Mexico, 2011 – 2021 .............................................................. 66

Chart 5-6: In-the-Canal Hearing Aid Market, Mexico, 2011 – 2021 .......................................................... 68

LIST OF CHARTS

© iData Research Inc., 2014 viii

Chart 5-7: Completely-in-Canal Hearing Aid Market, Mexico, 2011 – 2021............................................. 70

Chart 5-8: Receiver-in-Canal Hearing Aid Market, Mexico, 2011 – 2021 ................................................. 72

Chart 6-1: Total Hearing Aid Market by Circuit, Mexico, 2011 – 2021 ..................................................... 80

Chart 6-2: Hearing Aid Market Breakdown by Circuit, Mexico, 2014 ....................................................... 81

Chart 6-3: Hearing Aid Market Breakdown by Circuit, Mexico, 2021 ....................................................... 81

Chart 6-4: Non-Programmable Analog Hearing Aid Market, Mexico, 2011 – 2021 .................................. 83

Chart 6-5: Basic Digital Signal Processing Hearing Aid Market, Mexico, 2011 – 2021 ............................ 85

Chart 6-6: Economy Digital Signal Processing Hearing Aid Market, Mexico, 2011 – 2021 ..................... 87

Chart 6-7: Mid-Level Digital Signal Processing Hearing Aid Market, Mexico, 2011 – 2021 .................... 89

Chart 6-8: Premium Digital Signal Processing Hearing Aid Market, Mexico, 2011 – 2021 ...................... 91

Chart 7-1: Bone-Anchored Hearing Aid Market, Mexico, 2011 – 2021 ..................................................... 97

Chart 7-2: Leading Competitors, Bone-Anchored Hearing Aid Market, Mexico, 2014 ........................... 101

Chart 8-1: Cochlear Implant Market, Mexico, 2011 – 2021 ..................................................................... 105

Chart 8-2: Leading Competitors, Cochlear Implant Market, Mexico, 2014 ............................................. 109

Chart 9-1: Hearing Aid Battery Market, Mexico, 2011 – 2021 ................................................................ 113

Chart 9-2: Hearing Aid Battery Unit Sales Breakdown by Style, Mexico, 2014 ...................................... 115

Chart 9-3: Leading Competitors, Hearing Aid Battery Market, Mexico, 2014 ......................................... 119

MEXICAN MARKET FOR HEARING DEVICES AND BATTERIES OVERVIEW

© iData Research Inc., 2014 21

3

M E X I C A N M A R K E T F O R H E A R I N G D E V I C E S A N D BAT T E R I E S

OV E RV I E W

3.1 Introduction

In 2014, approximately X people in Mexico suffered from hearing loss. However, only a minor portion of

this population made use of hearing aids as a treatment that year. This market remains at only a fraction of

its potential size as increasing device penetration remained challenging. The hearing aid market comprises

both standard and implantable hearing aids.

3.1.1 Standard Hearing Aids

Standard hearing aids are devices designed to treat mild to profound hearing loss. The device consists of

an amplification circuit, which can be digital or analog, a receiver and a transducer, through which

amplified sound is delivered to the ear drum. All of these components are placed within a plastic shell that

fits into or around the ear, depending upon the style of hearing aid. Hearing aid styles will suit consumer

preferences in terms of visibility when fitted in the ear and sound characterization. They are also offered

with circuits that vary in quality, features and price.

3.1.2 Hearing Aid Batteries

A majority of batteries sold on the market are of the zinc-air type, which must be manually replaced by the

user, caretaker or audiologist every X days on average (depending on the frequency of use). These

batteries have a high energy density, achieved by using oxygen in the air as the cathode portion of the cell.

Rechargeable batteries and portable chargers are commercially available, but represent an insignificant

portion of the total national volume of units shipped. The predominant battery sizes used in Mexico are of

sizes #X, #X, #X, and #X.



3.1.3 Implantable Hearing Aids

Implantable hearing aids are devices designed with a surgically implanted component. They are often

employed when standard hearing aids are not a suitable treatment option. Implantable hearing aids include

cochlear implants and bone-anchored hearing aids.



3.3 Market Overview

Accounting for over X inhabitants and an increasing number of people over the age of 65, Mexico has a

significant market potential for hearing devices. Hearing loss is strongly associated with age; as a result,

the hearing-impaired population is expected to grow in the near future. Moreover, the aging population,

combined with technological improvements in hearing aid circuitry and the increasing defrayal by the

government, will further drive the market.



3.5 Drivers and Limiters

3.5.1 Market Drivers

Aging Population

Hearing loss is strongly associated with age, with at least moderate hearing loss becoming common above

65 years of age. As the over-65 population grows, there will be a larger hearing impaired population,

which is expected to lead to greater demand for hearing aids as treatment options. This will drive growth

in the hearing aid market, in addition to growth in other associated markets such as hearing aid batteries.

3.5.2 Market Limiters

Aesthetic Concerns

Many patients have lifestyle and aesthetic concerns with wearing hearing aids. Some avoid hearing aids

completely in order to conform to perceived social or aesthetic pressures. Despite the many new hearing

aid styles and discreet designs, some still regard hearing aids as a symbol of advanced old age and

incapability. These attitudes and concerns limit overall hearing aid market growth.



3.6 Competitive Analysis

Starkey

Starkey, a privately held and American-owned company, held a X% share of the overall hearing aid

market, and led the total hearing device and battery market.

Established in 1967, Starkey has 21 facilities in more than 18 countries throughout North America, South

America, Central America, Europe, Asia, and Australia. Starkey’s product line in this market features the

Halo™ and 3 Series™.







3.7 Holding Companies and Brand Ownership

Several holding companies operate within the hearing device market. Each company owns several

individual brands in several market segments. Each brand is often regarded as a separate entity, but it is

important to note which brands are owned by the same parent companies when analyzing competition in

this market.

William Demant Holding Group

William Demant Holding Group comprises several companies (hearing device, diagnostic instruments and

personal communication) that are involved in developing, manufacturing and selling products. The

companies collaborate and share resources and technologies, creating a synergistic union between the

partnerships.



3.9 Mergers and Acquisitions

EQT Acquires Siemens Audiology Solutions

In November 2014, EQT entered into an agreement to acquire Siemens Audiology Solutions from

Siemens AG together with Santo Holding, the investment vehicle of the German Strüngmann family, as

minority co-investor. Siemens Audiology is a leading global manufacturer of hearing aids acknowledged

for its innovative and high-quality products. Research and development has always been a core area for

the company having been fostered by Siemens strong technology heritage. The company’s management

team will continue to drive future development and growth.

Documents

MEXICAN MARKET FOR HEARING DEVICES AND BATTERIES · MEXICAN MARKET FOR HEARING DEVICES AND BATTERIES iDATA_MXHD15_RPT Published in December 2014 By iData Research Inc., 2014 iData