Solid Growth Forecast for Global Orthopedic Software Market

As the number of joint- and bone-related disorders rises, so too will the need for orthopedic software.

The global market for such software is expected to reach $636.5 million by the end of 2030, an 88 percent spike from its $338.5 million value in 2020, according to Kenneth Research. The market is expected to swell 6.6 percent annually over the next eight years, driven by a growing prevalence of orthopedic disorders, an increasing need amongst healthcare providers to improve service quality via lower the costs, and a surge in adoption of EHRs and other eHealth solutions. Market growth can also be attributed to the rising cases of orthopedic-related injuries from traffic accidents (the World Health Organization estimates between 20 million and 50 million people worldwide suffer non-fatal injuries in traffic accidents). Additionally, the world’s aging population are prone to different types of orthopedic conditions, and will contribute to the need for orthopedic-related software.

The world’s 65-and-over population of 703 million in 2019 is expected to double to 1.5 billion in the year 2050, according to a statistical report titled, “World Ageing Population 2019,” published by the Department of Economic and Social Affairs of the United Nations. The statistics also stated the share of this population group increased from 6 percent in 1990 to 9 percent in 2019.

Healthcare service providers worldwide are increasingly adopting information technology applications to enhance the quality of their service offerings. One of the major factors to this adoption is the surge in the number of outpatient visits in hospitals. For instance, the number of U.S. hospital outpatient visits alone increased from roughly 1,800 visitors per 1,000 population in 2000 to about 2,400 visitors in 2019. On the other hand, the surge in different types of orthopedic disorders globally has raised the need amongst healthcare service providers that provide orthopedic disorder-related services to adopt orthopedic software for enhancing their existing services. According to statistics by the International Osteoporosis Foundation, globally more than 8.9 million fractures annually are caused by osteoporosis. Compared to the rates of hip fracture globally in 1990, it is expected that fractures will increase by 310 percent in men and 240 percent in women by the end of 2050, statistics show. Furthermore, about 1.71 billion people worldwide had musculoskeletal conditions; among all the musculoskeletal disorders, the prevalence of low back pain caused the highest burden, thereby affecting 568 million people, according to WHO. 
 
The global orthopedic software market is segmented on the basis of region into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The N.A. market generated the largest revenue—$198 million in 2020—and is expected to reach $352.6 million by the end of 2030. Market growth can primarily be attributed to a surge in the adoption of electric medical records (EMRs) or electric health records (EHRs) and the growing prevalence of different types of orthopedic disorders. According to U.S. Centers for Disease Control and Prevention (CDC) statistics, 89.9 percent of U.S. office-based physicians used any EMR/EHR system in the year 2019, while 72.3 percent of them used a certified EMR/EHR system. The CDC estimated that by 2040, 78 million U.S. adults will have some form of arthritis, up 23.8 percent from 63 million adults in 2020. The N.A. market is further segmented by country into the United States and Canada. The U.S. market is forecast to garner the largest revenue—$186.4 million—by the end of this year, while the Canadian sector is expected to achieve the highest compound annual growth rate (CAGR)—7.2 percent—during the forecast period.
 
Europe’s orthopedic software market registered the second-largest revenue ($66.3 million) in 2020 and is expected to reach $131.1 million by the end of 2030. The market in the region is further segmented by country into Germany, United Kingdom, Italy, France, Spain, Russia, Netherlands, and the Rest of Europe. The U.K. market generated the largest revenue ($11.6 million) in 2020 and is forecast to reach $24.1 million by the end of 2030. Italy’s market is anticipated to achieve the highest CAGR of 8.3 percent during the forecast period.
 
The global orthopedic software market is segmented on the basis of product type into digital templating/pre-operative planning software, orthopedic EHR, orthopedic picture archiving and communication systems (PACS), orthopedic practice management, and orthopedic revenue cycle management. Amongst these segments, the orthopedic picture archiving and communication systems (PACS) segment registered a revenue of $84.8 million in 2020 and is expected to generate the largest revenue—$180.8 million—by the end of 2030. North America registered $49.5 million in 2020 and is projected to generate the largest revenue—$103.3 million—by the end of 2030, achieving the highest CAGR of 7.7 percent during the forecast period. Europe is anticipated to garner the second-largest revenue—$35.4 million—by the end of 2030, up from $16.8 million in 2020.
 
The global orthopedic software market is further segmented on the basis of end-user into hospitals, specialty orthopedic clinics, surgery centers, and others. Among these segments, the hospitals segment generated the largest revenue—$148.3 million—in 2020 and is expected to reach $280.1 million by the end of 2030. North America is expected to garner the largest revenue—$152.7 million—by the end of 2030, up from $86.3 million in 2020. In Asia Pacific, the segment generated $17.6 million in 2020 and is expected to garner the largest revenue—$44.1 million—by the end of 2030.
 
Some of the prominent industry leaders in the global orthopedic software market are Medical Device Business Services Inc. (Johnson & Johnson), Materialise NV, LEXI Co. Ltd., mediCAD Hectec GmbH, ORTHOKEY ITALIA S.r.l., Wright Medical Group N.V., JRI Orthopaedics, Brainlab AG, PEEK HEALTH S.A., Phoenix Ortho, Zimmer Biomet, Stryker Corporation, Medstrat, and Corin Group.