ReportsnReports has come out with a new estimate on the value of the spinal fusion market over the next six years. Here's how it compares to other reports from around the industry:
1. ReportsnReports estimates the spinal fusion market will reach $6.9 billion by 2020. The compound annual growth rate is 5.58 percent. However, this growth isn't as large as it could be. Several factors are contributing to slow growth in the spinal fusion market, including a new class of medical technologies improving upon fusion's weaknesses. Non-fusion technologies designed to retain range of motion and eliminate adjacent segment disease could become more popular in the future.
According to a report from Millennium Research Group, the global spinal non-fusion market will nearly triple in size through 2022 to reach and surpass $1.6 billion.
GlobalData recently lowered its predicted CAGR for spinal fusions from 10 percent to 5 percent annually through 2020, consistent with the ReportsnReports analysis.
2. The United States will dominate the spinal fusion market over the next six years. However, the country's global market share will decline from 71 percent in 2013 to 63 percent in 2020 due to several compounding factors.
A Global Analysis and Market Forecasts also notes the dominating size of the U.S. market for spinal fusions as a result of the clinical success among appropriately-indicated patients. The immense aging population will drive additional growth in the future. "The spinal fusion market is expected to remain strong over the forecast period," according to Global Analysis and Market Forecasts.
3. The United States market will have one of the lowest CAGRs through 2020 because the market is maturing. Additional newly-enacted reimbursement hurdles from public health payers will stunt U.S. market growth. "Public payers [in the United States] are beginning to implement strict measures on reimbursement documentation in an effort to eliminate medically unnecessary procedures," states the report. "For example, Medicare will now require spine surgeons to document prolonged periods of conservative treatment to alleviate the patient's symptoms prior to undergoing surgery."
4. Emerging economies will experience the highest growth rates in spinal fusion over the next few years. China will have double-digit growth rate through 2020 and increase its global market share from 5 percent in 2013 to 10 percent in 2020. A report from Decision Resources Group echoes this optimism on emerging economies, but also sheds light on challenges there as well. The Asia Pacific spinal implant and bone growth substitute market is projected to reach $7 billion by 2022, but price competition and government regulations put pressure on individual pricing even as demand increases.
5. Some established markets will also experience large growth rates. The European Union, including the United Kingdom and Italy, will see huge growth primarily due to increasing procedure volumes for spinal fusion surgeries. There are favorable reimbursement levels in the European Union and patients are willing to undergo surgery with minimally invasive techniques.
In the immediate future, emerging economies will be a source of immense growth for the spinal fusion market. Healthcare spending in established markets such as the United States and United Kingdom is expected to slow due to economic pressure and healthcare reform implementation, according to a Deloitte report.
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