Market Reviews

We expect 2Q20 orthopedic performance above consensus projections, but the U.S.'s inability to check the spread of COVID-19 will slow market recovery.

Increasing adoption of enabling technology, company consolidation through M&A, and accelerating growth of outpatient centers are COVID-proof orthopedic trends that will shape the market in 2021 and beyond.

Despite the uncertainty brought on by COVID-19, we've looked ahead and developed our orthopedic market forecast and trends through 2022.

Patient sentiment and confidence will play a key role in the COVID-19 orthopedic procedure recovery. What can we learn about patients from the data?

The underlying fundamentals of the orthopedic industry remain unchanged due to COVID-19. However, we should prepare for significant alterations in the market landscape as well as the ways that we interact with colleagues and customers.

The second quarter of 2019 brought incremental improvement over the first. Stryker and Medtronic saw revenue growth in the mid-single digits, Smith Nephew performed at 1.6% and DePuy Synthes and Zimmer Biomet experienced a year-over-year loss. Price pressure was a common theme in the quarter for many companies, as it offset some gains made from increased surgical volumes for the reporting period.

The first quarter of 2019 brought modest growth to the orthopedic market, as expected seasonal softness and more competition in digital surgery platforms slowed sales for some of the largest players. The 25 companies covered in this article had combined total orthopedic sales of $8.7 billion, growing just 1.1% versus the prior year. While the top two players, DePuy Synthes and Zimmer Biomet, both saw -2% growth, the quarter did feature strong performances by Medtronic (+5%) and Wright Medical (+16%) among the larger players.

The first quarter of 2019 was an active one for robotic and digital surgery developments. As adoption of digital surgery tools increases, leadership from joint replacement and spine companies indicate they have seen a direct sales benefit from upselling and product pull through.

According to our estimates published in THE ORTHOPAEDIC INUSTRY ANNUAL REPORT, orthopedic industry revenue reached $51 billion worldwide in 2018 and grew 3.5% over 2017. Results were mixed among the largest companies as some stumbled operationally while others overperformed, due in part to early adoption of technology and entry into high-growth segments. Common strategic themes present in 2018 that will continue as part of the industry's narrative in 2019 and beyond include connected ecosystems of products, flagship technology (e.g. robotics), portfolio-wide pull through and a growing shift to outpatient procedures.