The orthopedic devices market is set to reach nearly $50 billion in 2023, after gradually recovering from the pandemic and surpassing the pre-COVID level globally. The top three trends for the market this year include rising number of outpatient procedures, rapid development of robotic surgery, supply chain challenges and inflation pressure, says GlobalData, a leading data and analytics company.
Tina Deng, Principal Medical Devices Analyst at GlobalData, comments: “COVID-19 is accelerating the shift in the site of care, with more procedures, particularly total joint replacements, taking place in outpatient or ambulatory surgical centers (ASCs) to reduce hospital bed occupancy rates. The shift largely depends on the regulatory environment and reimbursement policies. As more types of orthopedic procedures, such as complex spine and joint replacement surgeries, are removed from the Centers for Medicare & Medicaid Services (CMS) inpatient-only list in the US, both patients and surgeons will seek systems and facilities that deliver the health service at the best.
“On the manufacturers’ side, more orthopedic instruments are tailored to meet the needs of ASCs with smaller sizes and remotely controlled features. Additionally, companies like Stryker have launched an ASC-focused business to deliver solutions specifically to optimize clinical and financial outcomes in the ASCs.”
Robotics-assisted surgeries will be more popular in the orthopedic operating room in 2023. Orthopedic robotic surgical systems aid in various procedures such as partial knee replacement, total knee replacement, and total hip replacement, to ultimately help surgeons perform procedures more consistently and accurately than with manual techniques.
Tina adds: “Boosted by artificial intelligence (AI) and machine learning, new generations of orthopedic robots are expected to further improve clinical outcomes. Unlike the general surgery robotics market—which is dominated by only one company, Intuitive Surgical—all major orthopedic manufacturers are competing in the orthopedic robotics market.”
According to GlobalData analysis, the market for orthopedic robotic surgical systems and accessories is expected to reach $984 million globally in 2023, with year-over-year growth of 25.6%.
Prices of raw materials of medical devices have skyrocketed in recent years. The market has been facing a significant rise in transport costs, and longer and more unpredictable delivery times. Price increases over the last two years are due to the effect of both the COVID-19 pandemic and Russo-Ukrainian war.
Tina concludes: “Orthopedic device manufacturers with more commoditized portfolios such as hip and knee implants will have less pricing power and a more limited ability to pass pricing on to hospitals. They are unwilling to increase prices and risk losing share to their competitors. Some companies may be unable to pass prices on to customers due to previous contracts. As costs remain high, brands that keep the same price will be suffering further margin erosion. GlobalData expects the trend to continue in 2023, as there is not a very clear path toward resolution of these issues for the orthopedic industry.”
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