MarketOptimizer released a new report on the orthopedic power tools market, with some question as to whether robotic technologies and computer assistance will make a big enough impact to stick around.
"Although the surgical protocol of robotic-assisted procedures is well-established, the technology has been slow to gain acceptance," said a company analyst. "As with computer-assisted devices, the lingering issue is the cost of robotic systems, as orthopedic surgeons often question whether the clinical benefits offered by the equipment can outweigh the extra expenditure."
Here are 10 trends from the report:
1. The global orthopedic power tools market was worth $1.4 billion in 2013 and is expected to grow at a compound annual growth rate of 2.5 percent through 2020, reaching $1.6 billion.
2. However, computer assisted and robotic surgery is expected to remain relatively flat, reserved for the top-tier hospitals in mostly developed countries.
3. Marketing drivers will likely continue to enhance existing growth for computer-assisted devices and robotic surgery.
4. One of the key factors holding robotic surgical procedures back is cost-effectiveness; the technology currently doesn't have data justifying costs in today's healthcare market.
5. The current challenging economic climate and reimbursement hindrance for computer-assisted joint replacements have made hospitals more reluctant, especially with a delay in recoupment for the purchase.
6. The countries where robotic and computer assisted devices are expected to grow include the United States, France, Germany, Italy, Spain, United Kingdom, Japan, Brazil, China and India. However, they will also experience the strongest price pressures and delayed capital equipment purchase as a result.
7. The big emerging players in the orthopedic power tools market are Aesculap, Arthrex, Brasseler USA/Tava Surgical, ConMed Linvatec, DePuy Synthes, MicroAire, Misonix, Medtronic, OsteoMed, Stryker and Zimmer. Stryker currently has 35 percent of the global orthopedic power tools market share.
8. Orthopedic surgeons have more enthusiasm for navigation technology than they did a few years ago, and the applications have grown for use in hip, knee and spine procedures.
9. Sales of pneumatic-powered tools will decline as a proportion of the overall market in western economies as surgeons adopt new-generation battery-powered systems. This adoption will drive growth in the future.
10. The orthopedic power tools market is expected to grow the fastest in China and India where markets offer several opportunities for manufacturers seeking to expand.
"The bar for effective competition has been raised again and again in the power tools field, making it very difficult for small- to mid-sized companies to navigate the landscape," said the analyst. "How two-tier companies will leverage their platform technologies in order to diversify their current portfolios and enhance their competitive edges against Stryker will be the most interesting development to follow in the coming years."