Worldwide Orthopaedic market in 2016: 40.5 B US$ (+4.2%)
The orthopaedics market, including hip, knee, spine, trauma, extremities and orthobiologics accounted for more than US$40B in 2016 – a growth of 4.2% Vs 2015.The United States remains the largest market due to historical trends & higher sale prices. In Europe, Germany is by far the biggest market for all segments. Followed by the UK, France & Italy.
The main drivers of the orthopaedics market remain demographic & economic parameters. Product innovation, resulting in a better (or higher) Product Mix, is boosting the market. They should remain the major growth contributors in the future. The trend towards reimbursement results in price pressure. This is the main limiter of the orthopaedic market. Price erosion of mature products in orthopaedics has been a constant over the past 20 years. We do not expect a major shift, but some countries will suffer more significant price decreases than others.
Revenues of the major Orthopaedic companies in 2016 (B US$)
Even the 5 major companies, control more than 60% of the worldwide orthopaedics market, have continuously lost market share to the challengers. The challengers have gained 1 to 2% market share per year (MUS$400 to MUS$ 800 additional revenue), achieving US$15B in revenue in 2016 (Vs 14.5 BUS$ in 2015). A huge gap remains between the size of the Majors and that of the Challengers. The revenues of the Majors are 10 to 50 times bigger than the Challengers’. However, the Challengers are growing more rapidly, on average by two-digit growth due to their wider range of products and their local high-level services. They are also attracting new sales forces.
The challengers gained market share continuously (2013-2016)
The only way for the Majors to have two-digit growth is by acquiring rivals (Depuy & Synthes, Zimmer & Biomet, Medtronic & Covidien).
Managing Partner – Avicenne Consulting
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