The global arthroscopy devices market is suggested to have reached a value of around $3.1 billion in 2011, and is forecasts to reach a total of $4.2 billion by the year 2018. This would give a CAGR growth rate between 2011 and 2018 of 4.9%.
The market is primarily driven by the increasing prevalence of osteoarthritis, due itself to a growing elderly population worldwide. This has led to a surge in the number of arthroscopy procedures being performed. Increasing preference for minimally invasive techniques and better implant material is another major growth driver, as is the rising number of sports injuries due to increased participation, particularly from children and adolescents, in sporting activities (Safe Kids USA, 2011). Adults aged 40 years and above are also more likely to sustain sports injuries through participation in sporting activities than the younger population (AAOS, 2011). The reimbursement scenario for arthroscopy remains unfavorable, especially in the US, due to multiple changes to Relative Value Units (RVUs).
The US is the largest market for arthroscopy devices, accounting for 48% in 2011. It was valued at $1.4 billion in 2011 and is forecast to reach $2 billion by 2018 at a CAGR of 4.8%, driven by increasing preference for minimally invasive procedures. This is in turn expected to drive adoption and increase procedure volumes. The adult population aged 40 years and above in the US engaging in physical activity will lead to more sports-related injuries (AAOS, 2011), which will further fuel arthroscopic procedure volumes. Companies in the US market currently face pricing pressures due to competition and the growing need for cost-effective healthcare services, although the increase in the volume of arthroscopy procedures is expected to offset a decline in their Average Selling Price (ASP).
Smith and Nephew and Arthrex dominated the global market for arthroscopy devices in 2011 with a share of 21% each. DePuy Synthes (12%), Conmed (10%), Stryker (8%) and ArthroCare (7%) also had significant market presence. An unfavorable reimbursement environment combined with pricing pressure is the major barrier to companies sustaining revenue growth in dollar terms. However, technical advances that allow for better procedure outcomes and cost-effectiveness will continue to drive arthroscopy procedure volumes. Companies are expected to focus on direct-to-consumer campaigns to create awareness of the various treatment options available to patients and their benefits. An increase in awareness of minimally invasive arthroscopy procedures will continue to drive market growth during the forecast period.
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