Lin Yan-sheng, Chairman of artificial joint manufacturer United Orthopedic, recently stated that while growth was strong in Japan, the US, and Taiwan in Q1, Europe saw a modest increase of 12%. However, he expects European market growth to accelerate from Q2 onwards.
Lin noted that over the past two years, the industry’s average growth rate has been around 4-5%, while United Orthopedic achieved an impressive annual growth rate of 23-24%. He is confident that the company will maintain a growth rate four to five times higher than the industry average this year.
Discussing global markets, Lin highlighted the US, the largest market worldwide, where new product launches have driven rapid growth, showing strong performance in Q1. Although European growth was slower in Q1, it is expected to catch up, though it may not reach the high levels of 2022. In Japan, despite a low initial base and challenging early years since establishment six to seven years ago, Q1 revenue hit NT$59 million, with significant growth anticipated to continue, marking it as a key future market.
In Taiwan, United Orthopedic holds the second-largest market share at an estimated 30%, continuing to capture market share with recent growth rates surpassing the natural growth rate of 4-5%. Despite the impact of exchange rates, the international market remains steady with significant future potential.
Addressing concerns about the Chinese market, Lin described it as currently chaotic, with many major brands partially withdrawing or relying on outdated products. United Orthopedic maintains a conservative outlook on China. The second phase of the national procurement program is set to finalize by the end of May, revealing which companies will gain entry, with gradual implementation starting in June. United Orthopedic anticipates securing tenders either through exports from Taiwan or authorized local manufacturing, given their competitive pricing.
The global artificial joint market was valued at $20.01 billion in 2022, with the top four companies holding a 70.9% share. United Orthopedic currently has a market share of just 0.5%. Lin is confident in the company's premium products, strong team, and innovative solutions. Reflecting on the company's 30-year journey to its current success, Lin highlighted that while the industry saw average growth rates of 5% in 2022 and 4% in 2023, United Orthopedic achieved annual revenue growth of 23% and 24% respectively. He remains optimistic about maintaining a growth rate four to five times that of the industry this year.
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