In mid 2011, we completed a comprehensive analysis of the products, technologies, markets and companies in the field of spine surgery. This $13 billion market is comprised of predominantly medical devices that address trauma, degenerative disc disease and a wide range of conditions of the spine. This remains the most comprehensive analysis of the global spine surgery market available.
Medical devices — and virtually all medical products — are under intense scrutiny to justify their cost/benefit. Medical device costs had already been in the crosshairs of advocates for cost containment in healthcare before the global economic downturn that emerged in 2008. However, the only force stronger than cost-cutting in healthcare seemed to be the inexorable drive for healthcare services by the senior population. As a result, while efforts to rein in healthcare costs in the past few years have resulted in tangible declines in average selling prices across a wide range of medical devices, demand for products in spine surgery has increased such that price reductions seem relatively unimportant.
The compound annual growth rates in sales of spine surgery devices range from modest to extraordinary. Growth rates in sales of select spine surgery product segments are actually well into double digit figures annually as procedure volumes are driven by high volume clinical need and supported by clinical outcomes for a voracious population of patients, many of whom are in the growing category of active seniors not content to accept lifestyles with restricted mobility.
Currently (see below), the bulk of the market remains in the well established spine fusion market, which continues to grow well (>9% annually) despite strong demand for technologies such as disc replacement, dynamic stabilization, and others that seek (and may achieve) better long term outcomes.
Worldwide Spine Surgery Device Market by Modality, 2010
Source: MedMarket Diligence, LLC; Report #M520, Worldwide Spine Surgery: Products, Technologies, Markets and Opportunities, 2010-2020.