28 Apr 2021
Posted in Coronavirus
COVID-19 pandemic wiped out $4.8bn in the orthopedic market in 2020, says GlobalData
The global orthopedic market has lost over $4.8bn in revenue since the outbreak of COVID-19. The market was worth over $48.4bn prior to COVID-19, with a compound annual growth rate (CAGR) of 2.8%. However, the market has since been affected by lower levels of elective procedures and has decreased by around 10% to $43.6bn in 2020, according to GlobalData, a leading data and analytics company.
GlobalData estimates that 15–30% of elective surgeries were canceled due to measures put in place to prevent the spread of COVID-19. The impact was pronounced on the orthopedic market in 2020. As Q1 2021 saw continued pressure from COVID-19 and its impact on the recovery of elective procedures, GlobalData expects that it will take the remainder of 2021 to return to pre-COVID-19 levels for elective orthopedic surgeries globally.
Tina Deng, MSc, Principal Medical Devices Analyst at GlobalData, comments: “To fight against the recession, major players have reconstructed their core business. For example, Zimmer Biomet recently announced it would spin off its spine and dental businesses to prioritize its resources on the hip, knee and trauma market. Additionally, Stryker acquired Wright Medical to expand its product portfolio and customer base to its trauma, foot and ankle, and upper extremities businesses in 2020. Meanwhile, Smith & Nephew acquired the Extremity Orthopedics business of Integra LifeSciences Holdings Corporation to strengthen its extremities business, which is among the fastest-growing segments in orthopedics.
“COVID-19 has accelerated the shift in the site of care, with more procedures, particularly with total joints, taking place in outpatient or ambulatory surgical centers (ASCs) to reduce hospital bed occupancy rates. As a result, more orthopedic instruments are tailored to meet the needs of ASCs with smaller size and remotely controlled features. Additionally, companies like Stryker launched an ASC-focused business in 2020 to deliver specific solutions to optimize clinical and financial outcomes in the ASCs. GlobalData expects this trend to continue in the coming years.”