Orthopedics market set to reach $64bn by 2025 as acquisitions surge, says GlobalData
Global market value for orthopedic devices is projected to grow at a compound annual growth rate (CAGR) of 4% to $64bn by 2025, driven by the rise in acquisitions within the orthopedics space in recent months, according to GlobalData, a leading data and analytics company.
Kevin Dang, Medical Devices Analyst at GlobalData, comments: “While various sectors have seen a decline in mergers and acquisitions (M&A), deals in orthopedics have not shown any signs of slowing down. Major players such as Stryker, a leading manufacturer of orthopedic, medical and surgical products, are looking to expand their portfolios by integrating new products from other segments. For instance, Stryker intends to incorporate wearables and smart implants into orthopedics. This unique approach will open up more opportunities in the sector should this deal turn out to be a success because competitors will soon follow with shrewd acquisitions of their own.”
Stryker’s acquisition of OrthoSensor, a medical device company that specializes in sensor technology for total joint replacement procedures, will allow Stryker to strengthen its position within the orthopedics market by combining sensor technology with data analytics to quantify orthopedics and improve robotic surgery. Another deal that was completed shortly before is Smith & Nephew’s acquisition of Extremity Orthopaedics Business. Smith & Nephew will be able to expand its orthopedics portfolio to enter the shoulder replacement and foot and ankle segments. The portfolio includes devices, implants and instruments for extremities.
According to GlobalData’s deals database, there were fifteen major deals completed in orthopedics in Q4 2020 compared to just five deals in Q3 2020. Currently, five deals have already been completed in January 2021 alone, which shows a promising trend for the rest of the first quarter.
Dang adds: “The strong continuation of deals into Q1 2021 within the orthopedics segment will promote further growth of the overall market.”
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