U.S. implantable medical device demand percent annual growth, in millions of dollars. Image: The Freedonia Group Inc. (Cleveland).

U.S. demand for implantable medical devices is forecast to increase 7.7% annually to $52 billion in 2015, according to a new study from The Freedonia Group Inc., a Cleveland-based market research firm. The study, “Implantable Medical Devices to 2015,” credits both technological advances and the development of next-generation devices that should increase patient and provider confidence in implant products. Demand will also benefit from the lack of alternative treatments for many chronic disorders and injuries, Freedonia asserts; although, over the long term, sales for medical implants will be challenged as insurance providers tighten control over implantation costs. However, the ability of medical implants to reduce overall treatment cost for many conditions, including osteoarthritis and chronic heart failure, will work in favor of growth for these products.

According to the report, orthopedic implants will remain the largest implantable device segment in market value. U.S. demand for orthopedic implants is forecast to increase 8.8% annually to $29.4 billion in 2015, spurred by technological improvements and safety enhancements. Advances will also reflect the growing prevalence of degenerative musculoskeletal disorders and lifestyle changes that place people at risk for sports and exercise injuries. At the same time, as products become more durable and long-lived, demand will increasingly come from an enlarged patient base for new surgeries rather than for replacements.

Also challenging this segment over the long term will be advances in pharmaceutical alternatives to treat arthritic conditions. However, the segment will benefit from a strong base of insurance approvals for orthopedic implants, Freedonia states, as well as a stable and well-funded medical delivery system and product designs that allow for less-invasive surgeries.

Cardiovascular implants have good potential to reduce the overall treatment cost for heart disease and contribute significantly to improved quality of life. Demand for these devices is expected to grow 5.1 percent annually to $14.6 billion in 2015. Pacing devices will realize the greatest sales gains, largely due to growth in cardiac resynchronization therapy. A focus on developing new
generations of pacing devices that reduce mortality and improve patient outcomes has resulted in greater pricing flexibility in an increasingly cost-conscious health care environment. Demand for cardiovascular stents and related devices will be similar to that of demand for pacing devices. The fastest growth will be in structural implants, as technological advances in heart valves, ventricular-assist devices, and implantable monitors will encourage greater use.

(For information on purchasing the report, visit www.freedoniagroup.com.)