The orthodontics industry has been undergoing drastic change led by technological breakthroughs over the last few years.
This subsegment of dental treatment entails the improvement of the arrangement and appearance of protruding, crowded or crooked teeth. It also pertains to correcting problems related to misaligned bites.
Increased consumer awareness regarding aesthetic treatment and rising business investments positions this industry well.
Per Fortune Business Insights, the global orthodontics market reached a value of $4.06 billion in 2018 and is anticipated to scale to $9.72 billion by 2026, at a CAGR of 11.6%.
Factors Driving Orthodontics Treatment Market
Rising Demand Among Teens and Children: Around 60-75% of the total global population is currently suffering from malocclusion or misaligned teeth, per a Cision Report. A recent study published in NCBI shows that only 4% of 13-15-year-old adolescents have normal occlusion with the rest having various forms of malocclusion. This indicates how children and teenagers dominate the global orthodontic market.
Growing Cosmetic Needs: Growing awareness of aesthetic needs has also been a major catalyst for the dental prosthetic market. Per Markets and Markets, the global cosmetic dentistry is expected to make $22.36 billion by 2020, at a CAGR of 6.8% during 2015-2020. Moreover, an increase in disposable income gives rise to higher demand for cosmetic dental surgeries.
Orthodontics Treatment Spreads in Emerging Economies: Growth within the orthodontics market has been primarily led by rising focus of vendors on emerging markets, such as Asia-Pacific and LAMEA. Some of the key developing nations, which have been witnessing increasing use of orthodontics products, are China, India, Brazil and Mexico. Better governmental programs to spread awareness about oral hygiene and modernization of healthcare technology have boosted the prospects of orthodontics treatment in these geographies.
One of the latest trends to watch out for within orthodontic treatment is the increasing usage of clear aligners. These are a type of transparent, plastic dental braces used in the adjustment of teeth. Align Technology ALGN currently offers a wide portfolio of clear aligner products, the primary one of which is known as the Invisalign system.
The system offers a range of treatment options, specialized services and proprietary software for treatment visualization. It is an exclusive method to treat malocclusion based on a series of doctor-prescribed, custom- manufactured and plastic-removable orthodontic clear aligners.
3 Orthodontics Stocks in Focus
Several key players within the highly-fragmented global orthodontics market are looking to consolidate their foothold through innovative product launches, partnerships and acquisitions, and geographical expansion.For instance, Align Technology forayed into the Indian market by commercially rolling out the Invisalign system.
Here we discuss a few such companies, which also have a Zacks Rank #3 (Hold).
Align Technology: This company is rolling out the Invisalign First clear aligners for treatment of younger patients. Apart from this, another product in the company’s portfolio — the Invisalign treatment with mandibular advancement — currently addresses roughly 45% of teenage patient cases and is the only clear aligner to move the mandibular forward while straightening teeth at the same time. The company witnessed strong double-digit growth year over year on continued momentum in Invisalign Go and Invisalign First treatment during its last-reported quarter.
Align Technology, Inc. Price
Align Technology, Inc. price | Align Technology, Inc. Quote
The company has an estimated earnings growth rate of 22.1% for the next five years. The company has a trailing four-quarter positive earnings surprise of 11%, on average.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DENTSPLY SIRONA XRAY: This company is a global leader in the design, development, manufacture and marketing of dental consumables. Earlier this year, DENTSPLY launched PrimeScan, a digital impression scanner. Per management, it is a crucial innovation in the company’s CAD/CAM-based digital dentistry segment and should drive penetration within the global orthodontics market. The 2018 acquisition of OroMetrix has helped DENTSPLY offer a comprehensive orthodontic portfolio that includes a ‘full arch clear-aligner’ solution.
DENTSPLY SIRONA Inc. Price
DENTSPLY SIRONA Inc. price | DENTSPLY SIRONA Inc. Quote
The company has an estimated earnings growth rate of 11.6% for the next five years. The company has a trailing four-quarter positive earnings surprise of 14.2%, on average.
3M MMM: This company boasts a rich portfolio of orthodontic consumables, which include 3M Clarity Ultra Self-Ligating Brackets, 3M Clarity Aligners, Clarity Advanced Ceramic brackets and Forsus Class II Correction System.
3M Company Price
3M Company price | 3M Company Quote
The company has an estimated earnings growth rate of 9.5% for the next five years. The company has a trailing four-quarter positive earnings surprise of 0.8%, on average.
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