09.15.15
Valued at more than $5 billion in 2015, the American spinal implant market will grow to $6.4 billion in the next 10 years, representing a compound annual growth rate of 2.4 percent, according to a report from Q2 Metrics Inc.
The U.S. spinal implant market is a mature sector with its largest product segments—traditional anterior cervical plating and posterior thoracolumbar pedicle screw fixation—featuring largely commoditized products and a lack of product innovation, the report states. Combined with ever-mounting pricing pressure from multiple points along the supply chain, steady pricing decreases are expected in most segments of the spinal implant market through 2024, Q2 analysts predicted.
But shifts in procedure and product mix to premium-priced artificial discs, plate/cage hybrid devices with integrated screw fixation, and minimally invasive alternatives will help offset declining unit prices, they note. The main beneficiaries of these shifts in the short term are the spine businesses of Medtronic plc and Johnson & Johnson’s DePuy Synthes—as well as pure-play spine companies with a noted focus and strength in these growing segments, including NuVasive Inc., Globus Medical Inc. and LDR Holding Corp.
“We’re seeing strong momentum in both hospital and physician reimbursement for artificial discs, which will help drive double-digit growth in this segment over the next 10 years,” said Q2 Metrics President Aaron Dickson. “And while the thoracolumbar market has been hardest hit by pricing pressures, premium-priced LLIF (lateral lumbar interbody fusion) and TLIF (transforaminal lumbar interbody fusion) devices continue to cannibalize their ALIF (anterior lumbar interbody fusion) and PLIF (posterior lumbar interbody fusion) counterparts, helping drive a greater than $1 billion growth in this segment by 2024.”
Q2 Metrics, headquartered in Toronto, Canada, provides global healthcare market intelligence.
The U.S. spinal implant market is a mature sector with its largest product segments—traditional anterior cervical plating and posterior thoracolumbar pedicle screw fixation—featuring largely commoditized products and a lack of product innovation, the report states. Combined with ever-mounting pricing pressure from multiple points along the supply chain, steady pricing decreases are expected in most segments of the spinal implant market through 2024, Q2 analysts predicted.
But shifts in procedure and product mix to premium-priced artificial discs, plate/cage hybrid devices with integrated screw fixation, and minimally invasive alternatives will help offset declining unit prices, they note. The main beneficiaries of these shifts in the short term are the spine businesses of Medtronic plc and Johnson & Johnson’s DePuy Synthes—as well as pure-play spine companies with a noted focus and strength in these growing segments, including NuVasive Inc., Globus Medical Inc. and LDR Holding Corp.
“We’re seeing strong momentum in both hospital and physician reimbursement for artificial discs, which will help drive double-digit growth in this segment over the next 10 years,” said Q2 Metrics President Aaron Dickson. “And while the thoracolumbar market has been hardest hit by pricing pressures, premium-priced LLIF (lateral lumbar interbody fusion) and TLIF (transforaminal lumbar interbody fusion) devices continue to cannibalize their ALIF (anterior lumbar interbody fusion) and PLIF (posterior lumbar interbody fusion) counterparts, helping drive a greater than $1 billion growth in this segment by 2024.”
Q2 Metrics, headquartered in Toronto, Canada, provides global healthcare market intelligence.