Artificial Disc Market Overview
The global artificial disc market is estimated to be valued at $1,050.0 million in 2017 and is projected to grow at a CAGR of 18.8% during the forecast period. The market will be led by cervical discs, in terms of both size and growth, owing to their potential to simulate the natural disc (in terms of function) and provide support to the cervical vertebrae. Cervical discs are expected to generate revenue of $2,479.6 million by 2024.
GLOBAL ARTIFICIAL DISC MARKET, BY MATERIAL, $M (2014–2024)
Metal-on-polymer is the most commonly used material for manufacturing artificial discs, and its market is expected to grow at a CAGR of 19.3% during the forecast period. This growth in the demand for metal-on-polymer discs is mainly driven by their flexibility, durability, biocompatibility, and resistance towards mechanical loading during physiological activities.
Globally, North America is estimated to be the largest contributor in the artificial disc market in 2017 and is expected to account for 49.4% of the market share by 2024. This leading position of the North American artificial disc market is driven by increasing prevalence of degenerative disc diseases, surging geriatric population, rising healthcare expenditure, improving economy, expanding private healthcare sector, and growing awareness among patients about the availability of various treatment options available in the region.
Artificial Disc Market Dynamics
Increase in mergers and acquisitions by the players in the industry is a key trend observed in the artificial disc market. For instance, in September 2017, NuVasive Inc. acquired Vertera Spine, a medical device company that develops and commercializes spinal fusion interbody implants using the patented porous polyetheretherketone (PEEK) technology. The acquisition aimed at building an advanced material science portfolio of NuVasive Inc. to complement the company’s position in the spine category.
Further, in July 2016, NuVasive Inc. acquired Biotronic NeuroNetwork (Biotronic), a provider of intraoperative neurophysiological monitoring (IONM) services, to deliver intraoperative neurophysiological monitoring services to healthcare facilities and surgeons to support more than 75,000 cases in the U.S annually.
Some of the major factors supporting the growth of the artificial disc market include product and technological innovations; increasing incidence of degenerative disc diseases; rising propensity for minimal incision surgeries; better clinical trial results with cervical total disc replacement (C-TDR) compared to anterior cervical discectomy and fusion (ACDF); long-term cost benefits of disc replacement over the spinal fusion procedures; surging geriatric population; and rising healthcare expenditure.
Degenerative disc diseases are more prevalent in geriatric population; since the age of an individual increases, it starts affecting the structure and function of the spine. This is one of the most common cause for spine surgeries and interventional procedures, such as artificial disc replacement. According to the American Chiropractic Association, around 31 million Americans experience low back pain at any given time. Also, the Chicago Institute of Neurosurgery and Neuroresearch stated in its study that by the age of 50, around 85% of the American population is expected to show an evidence of disc degeneration.
Globally, the rise in healthcare expenditure, has shifted the focus of the people toward disc replacement surgeries despite their high cost. For instance, according to the World Bank, there was an increase in the healthcare expenditure in the gross domestic product (GDP) from 9.5% in 2010 to 9.9% in 2014. Also, according to the National Health Expenditure Accounts (NHEA), the healthcare expenditure in the U.S. was 17.4% of its GDP in 2014, which increased to 17.8% in 2015.
The increasing number of clinical studies on artificial discs over ACDF surgeries and rising healthcare expenditure and government funding in R&D in emerging countries have created ample opportunities for the players in the artificial disc market.
The rising disposable income of the population residing in these countries has further increased the affordability for advanced treatment options. Besides, the increasing focus on the development of healthcare infrastructure in developing markets has further enabled healthcare providers in these markets to concentrate their resources on the adoption of advanced technologies, such as artificial disc replacement, in the case of spine surgeries.
Artificial Disc Market Competitive Landscape
Key players in the artificial disc market are launching new products and have been receiving approvals from the governments to increase their market share. For instance, in September 2017, NuVasive Inc. launched the LessRay software technology system, which comprised a propriety software algorithm and hardware components, designed to address the problem of overexposure to radiation in hospital operating rooms, particularly in the case of minimally invasive spine surgery (MISS).
Further, in April 2017, NuVasive Inc. launched a new RELINE Trauma portfolio as the company’s foundation to address the estimated $100.0 million U.S. spine trauma fixation market growing at a rate of 5.6% annually.
Some of the other key players operating in the artificial disc market are AxioMed LLC, Simplify Medical Inc., K2M Inc., Spinal Kinetics Inc., Globus Medical Inc., Johnson & Johnson, B. Braun Melsungen AG, Zimmer Biomet Holdings Inc., and Medtronic PLC.