U.S. total knee replacement market to surpass $4 billion by 2024, facilitated by the increasing incidences of degenerative diseases
Publisher : Fractovia | Published Date : 2018-11-01Request Sample
Total knee replacement (TKR) market is poised to witness a steady growth rate over the ensuing years due to the increasing prevalence of chronic bone disorders among the global population. Nations with growing number of geriatric as well as obese population, that are susceptive to degenerative diseases like osteoporosis, will propel the total knee replacement industry as a prominent revenue generator within the healthcare segment.
U.S. Total Knee Replacement Market, By Product, 2013 – 2024 (USD Million)
According to an International Osteoporosis Foundation (IOF) report, every 1 in 5 men and every 1 in 3 women suffer from osteoporosis, indicating that the requirement of effective bone disease treatments, including procedures like TKR, is bound to increase.
The demand for TKR procedures is observed to be expanding rapidly, prompting key industry players to pour in huge capital into research and development for introducing robust technological advances to the market. ConforMis knee implants, for instance, are custom designed and then 3D printed to match the dimensions of the patient’s natural knee, facilitating quicker and pain free recovery post the operation. For the record, some of the prominent revenue contenders in this space are Stryker, Medacta, Smith & Nephew, MicroPort Scientific, Corin, DJO Global, DePuy Synthes, and Zimmer Biomet
Speaking of the global opportunities, the developed economies, , especially ones with advanced healthcare facilities are cited to be major growth avenues for the total knee replacement industry growth. Below is a brief outlook of total knee replacement market trends with a regional frame of reference:
U.S. total knee replacement market outlook:
Touted as one of the leading contributors to the industry and exhibiting the highest potential for growth, the U.S. total knee replacement market is estimated to accrue over USD 4 billion by 2024. The industry demand will be aided by the increasing number of individuals suffering from degenerative diseases and obesity, with records stating that the country saw an average of 227 TKR procedures being performed per 100,000 population in 2014, a figure that has since risen gradually.
The U.S., attributing to its unique healthcare market charges a lot higher for healthcare services and prescription drugs than in other nations. The nation witnessed $10,348 per capita healthcare expenditure in 2016, which is more than half as much when compared to other wealthy countries.
Reportedly, the average hospital charges for a TKR in the U.S. is about $49,500 and this price does not consider inpatient charges that occur during a patient’s hospital stay. These on an average go up to $7,500, bringing the overall average TKR cost to about $57,000.
According to the 2017 National Health Expenditure Projections forecast, the U.S. is projected to accelerate its national health spending at an average rate of 5.5% per year between 2017 – 2026, with the total health expenditure reaching $5.7 trillion by 2026. The total knee replacement market is projected to carve itself a sizable chunk out of this expenditure based on the amplified demand for knee replacement procedures, along with the rise in cost of treatments induced by technological advancements in the U.S. healthcare system.
It is imperative to mention that Canada is also considered to be a lucrative market for the North American total knee replacement industry, with a lifestyle pattern similar to the U.S. Although not as high as its neighbor, Canada still spent around $4,753 per capita on healthcare (PPP adjusted) in 2016. Canada spent over $1 billion annually on joint replacement surgeries during 2016-2017, signifying the tremendous earning capacity for the regional total knee replacement market.
Europe total knee replacement market outlook:
The UK total knee replacement market is witnessing a substantial push with knee replacement procedures becoming an increasingly common phenomenon. Referring to National Joint Registry, approximately 160,000 total knee replacement procedures are carried out each year in Wales and England. A 2015 UK Mirror report mentioned that the previous year, NHS has spent a total of £585 million (USD 754.94 million) on knee replacement surgeries. Reportedly, in the same year, more than 90,000 knee surgeries were conducted in the NHS clinics and hospitals at an average charge of £6,500 each.
Germany is also slated to emerge as a top-notch regional avenue for Europe total knee replacement industry with the increasing healthcare spending and the growing disposable income. The region’s annual per capita healthcare spending was close to $5,551 in 2016. In 2014, the region witnessed 197 inpatient total knee replacements were performed per 100,000 population. As per Global Market Insights, Inc. Germany total knee replacement industry will record a CAGR of 4% over 2018-2024.
In essence, with an upward trend in the demand for total knee replacement procedures worldwide and the rapid R&D investments by the key industry players, the total knee replacement market is anticipated to record a respectable CAGR of 3.7% from 2018 to 2024.
