Orthobiologics Market Size and Share
Market Definition
Biologic and biochemical products with application across orthopedics.
October 2024 (update coming January 2025)
Mike Evers, Senior Market Analyst
Welcome to our orthobiologics market report. This page supplements the orthobiologics chapter in THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT®. This segment has a broad reach into many areas of orthopedics that saw elevated growth rates as the market rebounded from a period of disruption.
The Market at a Glance
Orthobiologics sales account for 9.3% of the $59 billion global orthopedics market. Segment sales surpassed $5.4 billion and benefitted from rebounding spine and trauma surgical volumes in 2023. Supply chain disruption, reimbursement changes and volume-based procurement (VPB) in China offset some of orthobiologics’ growth potential, however.
Market Forecast
We anticipate some remaining upside for orthopedic procedure volumes in 2024 with less disruption to the orthobiologics segment, as well as its associated segments like spine and trauma. New regenerative treatments could bolster the market’s growth rate after the backlogged procedure volume peters out. We estimate the market will surpass $6.2 billion by 2027.
Exhibit 1: Worldwide Orthobiologics Sales by Year ($millions)
Get More Orthopedic Market Data. Download the Orthopedic Companies Sales Matrix for our most complete and granular numbers. It contains worldwide orthopedic sales for 75 public and private companies by segment from 2016 through 2024.
Here are some of the orthobiologic market dynamics we considered in our forecasts:
The Osteoarthritis Health Crisis
Osteoarthritis (OA) affects 32.5 million adults in the U.S., with an overall economic burden of $137 billion annually, according to estimates by U.S. Centers for Disease Control and Prevention. The economic burden has more than doubled over the last decade. Additionally, research suggests that arthritis-related activity limitations contribute to the lower employment rates of working-age individuals with OA. The number of impacted adults in the U.S. could double by 2040. Orthobiologics for OA pain will see sustained, robust demand and investments.
Short-Term Market Disruption Creates Headwinds
Market disruption in 2023 hit orthobiologics directly and indirectly via associated segments like spine and sports medicine. Major players like Bioventus and Orthofix faced leadership challenges that led to more uncertainty in the market. Ongoing geopolitical instability and inflationary pressures could extend these headwinds through 2024.
Early Innings for Regenerative Treatments
More orthopedic companies are looking to commercialize regenerative treatments. The regulatory journey for these treatments is long and expensive and will delay for years a significant number of products reaching the market and gaining adoption. We expect the promise of regenerative therapies to drive more orthopedic funding and M&A activity in the coming years. However, that activity may take a bit of time to ramp up. The current investment and acquisition environment favors commercial-ready targets.
We’re solving a biological problem through the intersection of engineering, chemistry and biological materials science. There have been many failures in regenerative medicine — it’s a tough nut to crack. But patients shouldn’t have to wait for the care they need. They should get the relief they need now.
Dushyanth Surakanti, Sparta Biomedical’s CEO and Founder
Sales by Region
Orthopedic markets in Australia, Canada and several EU countries demonstrated strength during the year. However, sanctions on Russia and VBP in China were headwinds. Segments closely associated with orthobiologics — spine, trauma and sports medicine — underwent VBP tenders in successive years, resulting in drastic price declines and disrupted ordering patterns.
Anti-corruption initiatives in China also affected the market, but Medtronic, the largest orthobiologics company, said contracting through VBP insulated the company from much of that impact.
Exhibit 2: Orthobiologics Sales by Region ($millions)
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $3,839.2 | $3,706.6 | $132.6 | 3.6% |
| OUS | $1,661.1 | $1,611.3 | $49.8 | 3.1% |
| EMEA | $902.1 | $866.8 | $35.2 | 4.1% |
| APAC | $610.5 | $600.9 | $9.6 | 1.6% |
| ROW | $148.5 | $143.6 | $4.9 | 3.4% |
| Total | $5,500.3 | $5,317.9 | $182.4 | 3.4% |
Exhibit 3: Orthobiologics Market Share by Region ($millions)
Top Companies
The diverse nature of orthobiologics creates a very balanced market relative to the rest of orthopedics. All players own less than 10% of the market. The segment has 19 players with at least $50 million in annual revenue, the most in orthopedics, according to our estimates.
We expect consolidation to increase within the segment as regenerative treatments mature and become acquisition targets for larger orthopedic companies. The segment has been one of the most active since 2020 and is the only one to see sequential deal volume increases over the past three years.
Exhibit 4: Top 10 Orthobiologics Players and All Others ($millions)
| Company | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Medtronic | $526.0 | $496.7 | $29.3 | 5.9% |
| MTF Biologics | $397.1 | $388.9 | $8.2 | 2.1% |
| DePuy Synthes | $346.1 | $334.1 | $11.9 | 3.6% |
| Bioventus | $340.5 | $326.3 | $14.2 | 4.4% |
| Stryker | $321.2 | $308.7 | $12.5 | 4% |
| Sanofi | $286.8 | $302.5 | ($15.7) | (5.2%) |
| Arthrex | $270.4 | $262.3 | $8.1 | 3.1% |
| Globus Medical * | $189.5 | $199.7 | ($10.2) | (5.1%) |
| Heraeus | $188.0 | $179.2 | $8.8 | 4.9% |
| LifeNet Health | $181.8 | $175.6 | $6.1 | 3.5% |
| All Others | $2,452.9 | $2,343.8 | $109.1 | 4.7% |
| Market Total | $5,500.3 | $5,317.9 | $182.4 | 3.4% |
Exhibit 5: Orthobiologics Market Share by Company ($millions)
* On a pro forma basis.
Bioventus shook off some poor strategic decisions in recent history to finish the year strong in its viscosupplement and bone graft substitute franchises. After the failed acquisition of CartiHeal, the HA reimbursement quagmire and leadership change, the company seems back on solid ground. The new leadership team vowed to accelerate revenue growth, improve operational efficiency and increase cash flow and liquidity in 2024.
The arrival of Stryker’s spine robot could help the company win additional shares and opportunities for its orthobiologics products. Globus Medical has significant M&A integration work to do in 2024 due to the expectation that its acquisition of NuVasive will blunt sales growth. Orthofix’s DBM franchise remained robust in 2023, but the company had trouble replicating that success with its cell-based allografts.
Important Developments in the Orthobiologics Market
Bioventus Rights the Ship
After a long period of disruption including failed acquisitions, executive turnover and reimbursement changes, Bioventus performed extremely well in 2024. Its Pain and Joint segment averaged better than 20% in the last three quarters on the strength of DUROLANE and improved commercial execution. Bioventus’ Surgical Solutions business, including bone growth substitutes, is growing in the mid-teens so far in 2024 after a strong 2023.
The sales team has done a great job of selling around all the contract positions that we have. We're starting to get into new areas like the VA and executing a lot better in the IDNs. We're more targeted with that. Our markets are continuing to expand with a number of lives and opportunities.
Mark Singleton, Bioventus CFO
BONESUPPORT’s Incredible Growth
BONESUPPORT is one of the fastest-growing companies in orthopedics, with annual revenues surpassing $50 million and a four-year CAGR over 48%. FDA clearance of CERAMENT G in 2022 continues to drive tremendous growth for the company. Coming off 80% growth in 2023, the company grew more than 56% through the first half of 2024. Drug-eluting CEMEMENT products in the U.S. grew more than 100% in both the first and second quarters of 2024, providing the catalyst for BONESUPPORT’s acceleration.
Increasingly Attractive M&A Targets
Orthobiologics accounted for 25% of orthopedic M&A activity in 2023, with just one fewer transaction than the juggernaut segment of spine. Since 2020, orthobiologoics and digital technology have accounted for the same number of transactions, tying them for third most active in orthopedics behind spine and trauma (foot and ankle, more specifically). Recent activity was highlighted by moves from Crescent Innovations, CG Bio and Xtant.
Further Reading
Thanks for visiting! Need more insight into the orthobiologics market? Questions and comments are always welcome. You can reach me by email. Until then, check out this selection of orthobiologics-related posts from recent months.
September 11, 2024
,
Julie A. Vetalice
September 13, 2024
,
Julie A. Vetalice
August 29, 2024
,
Julie A. Vetalice
Our overview of the $5.5 billion orthobiologics market includes up-to-date information on forecasted growth, the top companies and industry-driving trends.
Market Definition
Biologic and biochemical products with application across orthopedics.
October 2024 (update coming January 2025)
Mike Evers, Senior Market Analyst
Welcome to our orthobiologics market report. This page supplements the orthobiologics chapter in THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT®. This segment has a broad reach into many areas of orthopedics that saw elevated growth rates as the market rebounded from a period of disruption.
The Market at a Glance
Orthobiologics sales account for 9.3% of the $59 billion global orthopedics market. Segment sales surpassed $5.4 billion and benefitted from rebounding spine and trauma surgical volumes in 2023. Supply chain disruption, reimbursement changes and volume-based procurement (VPB) in China offset some of orthobiologics’ growth potential, however.
Market Forecast
We anticipate some remaining upside for orthopedic procedure volumes in 2024 with less disruption to the orthobiologics segment, as well as its associated segments like spine and trauma. New regenerative treatments could bolster the market’s growth rate after the backlogged procedure volume peters out. We estimate the market will surpass $6.2 billion by 2027.
Exhibit 1: Worldwide Orthobiologics Sales by Year ($millions)
Get More Orthopedic Market Data. Download the Orthopedic Companies Sales Matrix for our most complete and granular numbers. It contains worldwide orthopedic sales for 75 public and private companies by segment from 2016 through 2024.
Here are some of the orthobiologic market dynamics we considered in our forecasts:
The Osteoarthritis Health Crisis
Osteoarthritis (OA) affects 32.5 million adults in the U.S., with an overall economic burden of $137 billion annually, according to estimates by U.S. Centers for Disease Control and Prevention. The economic burden has more than doubled over the last decade. Additionally, research suggests that arthritis-related activity limitations contribute to the lower employment rates of working-age individuals with OA. The number of impacted adults in the U.S. could double by 2040. Orthobiologics for OA pain will see sustained, robust demand and investments.
Short-Term Market Disruption Creates Headwinds
Market disruption in 2023 hit orthobiologics directly and indirectly via associated segments like spine and sports medicine. Major players like Bioventus and Orthofix faced leadership challenges that led to more uncertainty in the market. Ongoing geopolitical instability and inflationary pressures could extend these headwinds through 2024.
Early Innings for Regenerative Treatments
More orthopedic companies are looking to commercialize regenerative treatments. The regulatory journey for these treatments is long and expensive and will delay for years a significant number of products reaching the market and gaining adoption. We expect the promise of regenerative therapies to drive more orthopedic funding and M&A activity in the coming years. However, that activity may take a bit of time to ramp up. The current investment and acquisition environment favors commercial-ready targets.
We’re solving a biological problem through the intersection of engineering, chemistry and biological materials science. There have been many failures in regenerative medicine — it’s a tough nut to crack. But patients shouldn’t have to wait for the care they need. They should get the relief they need now.
Dushyanth Surakanti, Sparta Biomedical’s CEO and Founder
Sales by Region
Orthopedic markets in Australia, Canada and several EU countries demonstrated strength during the year. However, sanctions on Russia and VBP in China were headwinds. Segments closely associated with orthobiologics — spine, trauma and sports medicine — underwent VBP tenders in successive years, resulting in drastic price declines and disrupted ordering patterns.
Anti-corruption initiatives in China also affected the market, but Medtronic, the largest orthobiologics company, said contracting through VBP insulated the company from much of that impact.
Exhibit 2: Orthobiologics Sales by Region ($millions)
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $3,839.2 | $3,706.6 | $132.6 | 3.6% |
| OUS | $1,661.1 | $1,611.3 | $49.8 | 3.1% |
| EMEA | $902.1 | $866.8 | $35.2 | 4.1% |
| APAC | $610.5 | $600.9 | $9.6 | 1.6% |
| ROW | $148.5 | $143.6 | $4.9 | 3.4% |
| Total | $5,500.3 | $5,317.9 | $182.4 | 3.4% |
Exhibit 3: Orthobiologics Market Share by Region ($millions)
Top Companies
The diverse nature of orthobiologics creates a very balanced market relative to the rest of orthopedics. All players own less than 10% of the market. The segment has 19 players with at least $50 million in annual revenue, the most in orthopedics, according to our estimates.
We expect consolidation to increase within the segment as regenerative treatments mature and become acquisition targets for larger orthopedic companies. The segment has been one of the most active since 2020 and is the only one to see sequential deal volume increases over the past three years.
Exhibit 4: Top 10 Orthobiologics Players and All Others ($millions)
| Company | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Medtronic | $526.0 | $496.7 | $29.3 | 5.9% |
| MTF Biologics | $397.1 | $388.9 | $8.2 | 2.1% |
| DePuy Synthes | $346.1 | $334.1 | $11.9 | 3.6% |
| Bioventus | $340.5 | $326.3 | $14.2 | 4.4% |
| Stryker | $321.2 | $308.7 | $12.5 | 4% |
| Sanofi | $286.8 | $302.5 | ($15.7) | (5.2%) |
| Arthrex | $270.4 | $262.3 | $8.1 | 3.1% |
| Globus Medical * | $189.5 | $199.7 | ($10.2) | (5.1%) |
| Heraeus | $188.0 | $179.2 | $8.8 | 4.9% |
| LifeNet Health | $181.8 | $175.6 | $6.1 | 3.5% |
| All Others | $2,452.9 | $2,343.8 | $109.1 | 4.7% |
| Market Total | $5,500.3 | $5,317.9 | $182.4 | 3.4% |
Exhibit 5: Orthobiologics Market Share by Company ($millions)
* On a pro forma basis.
Bioventus shook off some poor strategic decisions in recent history to finish the year strong in its viscosupplement and bone graft substitute franchises. After the failed acquisition of CartiHeal, the HA reimbursement quagmire and leadership change, the company seems back on solid ground. The new leadership team vowed to accelerate revenue growth, improve operational efficiency and increase cash flow and liquidity in 2024.
The arrival of Stryker’s spine robot could help the company win additional shares and opportunities for its orthobiologics products. Globus Medical has significant M&A integration work to do in 2024 due to the expectation that its acquisition of NuVasive will blunt sales growth. Orthofix’s DBM franchise remained robust in 2023, but the company had trouble replicating that success with its cell-based allografts.
Important Developments in the Orthobiologics Market
Bioventus Rights the Ship
After a long period of disruption including failed acquisitions, executive turnover and reimbursement changes, Bioventus performed extremely well in 2024. Its Pain and Joint segment averaged better than 20% in the last three quarters on the strength of DUROLANE and improved commercial execution. Bioventus’ Surgical Solutions business, including bone growth substitutes, is growing in the mid-teens so far in 2024 after a strong 2023.
The sales team has done a great job of selling around all the contract positions that we have. We're starting to get into new areas like the VA and executing a lot better in the IDNs. We're more targeted with that. Our markets are continuing to expand with a number of lives and opportunities.
Mark Singleton, Bioventus CFO
BONESUPPORT’s Incredible Growth
BONESUPPORT is one of the fastest-growing companies in orthopedics, with annual revenues surpassing $50 million and a four-year CAGR over 48%. FDA clearance of CERAMENT G in 2022 continues to drive tremendous growth for the company. Coming off 80% growth in 2023, the company grew more than 56% through the first half of 2024. Drug-eluting CEMEMENT products in the U.S. grew more than 100% in both the first and second quarters of 2024, providing the catalyst for BONESUPPORT’s acceleration.
Increasingly Attractive M&A Targets
Orthobiologics accounted for 25% of orthopedic M&A activity in 2023, with just one fewer transaction than the juggernaut segment of spine. Since 2020, orthobiologoics and digital technology have accounted for the same number of transactions, tying them for third most active in orthopedics behind spine and trauma (foot and ankle, more specifically). Recent activity was highlighted by moves from Crescent Innovations, CG Bio and Xtant.
Further Reading
Thanks for visiting! Need more insight into the orthobiologics market? Questions and comments are always welcome. You can reach me by email. Until then, check out this selection of orthobiologics-related posts from recent months.
September 11, 2024
,
Julie A. Vetalice
September 13, 2024
,
Julie A. Vetalice
August 29, 2024
,
Julie A. Vetalice
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