The Future of the Orthopedic Devices Market to 2012

Updated 1/16/09

Published Date: 10/12/2008

Summary: A new report by Global Markets Direct, the business intelligence specialists, finds that increasing number of individuals are opting for minimally invasive surgeries and treatment options. Artificial joints, spinal implants and orthobiologics are some of the key segments driving revenue growth and investor interests in the global orthopedic devices sector. Global Markets Direct’s report, “The Future of the Orthopedic Devices Market to 2012”, highlights this development as one of the key market driver for the global orthopedic devices market.

Artificial Joints Will Continue To Drive Growth

The joint reconstruction (artificial joints) market valued at $12.2 billion in 2008 will continue to drive growth in the orthopedic devices sector. The global joint reconstruction market is expected to grow by more than 9% annually to reach $17.4 billion by 2012 and is forecast to contribute 45% of the overall orthopedic devices market value by 2012. The key growth segments within the join reconstruction sector are gender specific knee implants; and hip and knee resurfacing product lines.
The demand for hip and knee replacement procedures is increasing with a rise in the aging population and a growing number of younger patients going for joint arthroplasty procedures. New product innovations, newer procedure techniques and positive clinical outcomes of products introduced in the past four years are some of the key growth drivers in this sector according to Global Market Direct analysis.

Spinal Non-Fusion Technologies To Boost Spinal Implants Growth

The spinal non-fusion devices market valued at $551 million in 2008 is forecast to grow by more than 10% annually to reach $792 million by 2012 accounting for 15% of the spinal surgery market value.
The presence of innovative products and favorable clinical trial data for spinal non-fusion product lines are an indication of the superiority of this technology over existing options. Its advantage over the traditional spinal fusion techniques, primarily associated with higher degree of motion preservation, is fueling the demand and growth of non-fusion spinal implants.

Orthobiologics Will Continue To Attract Investment Dollars

Driven primarily by technological innovations and strategic consolidations, the orthobiologics market will continue to be in investors’ focus. The orthobiologics market, valued at $5.4 billion in 2008 is expected to grow by 9.3% annually to reach $7.5 billion by 2012. Orthobiologics is the fastest growing segment within the orthopedic devices sector with more than 100 products at different stages of clinical development. Global Market Direct analysis predict increased utilization of orthobiologics such as bone morphogenic proteins and autologous growth factors in orthopedic and spine surgeries to drive segment growth in the next 5 years.

Biodegradable Implants To Bolster Growth In Trauma Fixation

Biodegradable implants are set to drive growth of the trauma fixation devices market which was valued at $2.2 billion in 2008 and is expected to grow by 6.5% annually to reach $2.8 billion by 2012.
With at least 3 high potential biodegradable implants under clinical development, the technological landscape is set for significant change within the trauma fixation devices market. Superior technology, patient comfort and procedure simplicity are expected to drive acceptance by providers and purchasers.

Industry Consolidations Will Continue To Reshape The Orthopedic Devices Competitive Landscape

The global orthopedic devices market is set to see heightened consolidation activity, driven primarily by Mergers & Acquisitions (M&As) in the joint reconstruction, spinal surgery and orthobiologics market segments. In 2007-08, a total of 42 M&A deals were signed in the orthopedic devices market with joint reconstruction, spine and orthobiologics companies’ together accounting for 70% of the deal volume, according to Global Markets Direct’s medical equipment deals database. The recent devaluation in market worth of small and mid-cap companies in the orthopedic device sector in light of the financial crisis is expected to trigger fresh bouts of consolidation in the next 3-5 year period.

The Future Will See A Smaller Number of Patients Going Under The Knife For Orthopedic Procedures

Innovations in minimally-invasive technologies have enabled patients to now choose alternate orthopedic procedures instead of the complex and painful surgical procedures. The hip and knee implants market is already witnessing this trend. Knee and hip resurfacing are potential options for those who are seeking a more conservative alternative to total joint replacement. This bone-conserving approach results in a better range of motion and less risk of dislocation than traditional total replacement. Increasing awareness among patient groups and orthopedic surgeons’ familiarity greater with minimally invasive procedure techniques is likely to positively impact the growth dynamics of the orthopedic devices sector in the next 5 years.

The Future of the Orthopedic Devices Market to 2012

Summary

The global orthopedic devices market, over the years, has emerged as one of the most dynamic industries in the medical equipment sector. The industry in the recent past has seen a mega private equity transaction, multiple large mergers, some super large acquisition attempts, heavy patent infringement payouts and multiple high value product launches.
Global Markets Direct’s “The Future of the Orthopedic Devices Market to 2012” report provides key data, information and analysis on the global orthopedic devices market. The report provides market landscape, competitive landscape and market trends information on 7 market categories including joint reconstruction, spinal surgery, trauma fixation, orthobiologics, orthopedic braces and supports, orthopedic accessories, and orthopedic diagnostic devices. The report provides comprehensive information on the key trends affecting these categories, and key analytical content on the market dynamics. The report reviews the competitive landscape in terms of mergers and acquisitions, pipeline products and technology offerings.

Scope

• The report covers data and analysis on the orthopedic devices market in the leading geographies of the world comprising of the United States, Canada, UK, Germany, France, Italy, Spain, Japan, China, India, Australia, and Brazil.
• The report covers global market size and company share data for 7 orthopedic devices market categories comprising of Orthobiologics, Joint Reconstruction, Spinal Surgery, Trauma Fixation, Arthroscopy, Orthopedic Accessories, and Orthopedic Braces and Supports.
• Annualized market revenues data from 2000 to 2007, forecast forward for 5 years to 2012.
• The report provides qualitative analysis of market drivers, restraints, future outlook and challenges by categories and segments.
• The report also covers information on the leading market players, the competitive landscape, and the leading pipeline products and technologies.
• Key topics covered include the global orthopedic devices M&A landscape, global market landscape in the nucleus replacement and gender-specific knees markets and the hip resurfacing market dynamics in the US.
• The report is built using data and information sourced from proprietary databases, primary and secondary research and in house analysis by Global Markets Direct’s team of industry experts.