Acquisitions Set to Propel Global Orthopedics Market to $64 Billion by 2025

Mergers and acquisitions of orthopedic companies are expected to foster a 4 percent annual growth in the industry over the next four years.

Research from worldwide data and analytics company GlobalData predicts the sector’s value will swell to $64 billion by 2025, driven mostly by the rise in acquisitions within the orthopedic space in recent months.  

Stryker Corp.’s acquisition of OrthoSensor, a medical device company that specializes in sensor technology for total joint replacement procedures, will allow Stryker to strengthen its position within the orthopedics market by combining sensor technology with data analytics to quantify orthopedics and improve robotic surgery.  Another deal that was completed shortly before is Smith+Nephew’s acquisition of Extremity Orthopaedics Business. Smith+Nephew will be able to expand its orthopedics portfolio to enter the shoulder replacement and foot and ankle segments. The portfolio includes devices, implants and instruments for extremities.
 
Kevin Dang, a medical devices analyst at GlobalData, said: “While various sectors have seen a decline in mergers and acquisitions (M&A), deals in orthopedics have not shown any signs of slowing down. Major players such as Stryker, a leading manufacturer of orthopedic, medical and surgical products, are looking to expand their portfolios by integrating new products from other segments. For instance, Stryker intends to incorporate wearables and smart implants into orthopedics. This unique approach will open up more opportunities in the sector should this deal turn out to be a success because competitors will soon follow with shrewd acquisitions of their own.” 
 
According to GlobalData’s deals database, there were 15 major deals completed in orthopedics in Q4 2020 compared to just five deals in Q3 2020. Currently, five deals have already been completed in January 2021 alone, which shows a promising trend for the rest of the first quarter.
 
Dang added: “The strong continuation of deals into Q1 2021 within the orthopedics segment will promote further growth of the overall market.”