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Orthopedic market sales are expected to surpass $55.5 billion in 2022, growing +3.4% versus 2021, according to our estimates. While the industry faced a third year of disruption, its 2022 growth closely reflects the pre-COVID average growth rate and outperforms our original estimate of 3.2%.
“It feels like the orthopedic industry is about 95% of the way back to normalized capacity,” said Mike Evers, ORTHOWORLD’s Senior Market Analyst. “Of course, we expect this year’s macroeconomic pressures, such as supply chain disruption, inflation and staffing shortages, to persist into 2023.”
Mr. Evers outlined end-of-year sales projections for the top orthopedic companies and highlighted the performance of each market segment in our latest webinar, “Orthopedic Market 2022 Projections & 2023 Outlook.” Data in the webinar and highlighted within this article come from our newly-updated Orthopedic Company Revenue Matrix, a comprehensive collection of company sales data that is downloadable and integrable into your models.
Orthopedic Company Performance
The largest orthopedic companies are projected to combine for more than $36.7 billion in revenue and growth of 2.2% vs. 2021, as seen in Exhibit 1.
Exhibit 1: Orthopedic Companies over $1 Billion ($ Millions)
| Company | FY22P | FY21 | $ Chg | % Chg |
|---|---|---|---|---|
| Stryker | $9,369.5 | $8,969.8 | $399.7 | 4.5% |
| DePuy Synthes | $8,620.0 | $8,584.7 | $35.2 | 0.4% |
| Zimmer Biomet | $6,884.8 | $6,827.3 | $57.5 | 0.8% |
| Smith+Nephew | $3,583.7 | $3,644.8 | ($61.1) | (1.7%) |
| Medtronic | $3,177.7 | $3,109.4 | $68.2 | 2.2% |
| Arthrex | $2,834.2 | $2,679.5 | $154.7 | 5.8% |
| NuVasive | $1,206.5 | $1,139.0 | $67.5 | 5.9% |
| Globus Medical | $1,025.1 | $958.1 | $67.0 | 7% |
| Total | $36,701.4 | $35,912.6 | $788.8 | 2.2% |
A few observations about this tier:
- Stryker saw strong performances from its knee, hip, extremities and enabling technology portfolios, which extended its lead as the top orthopedic company.
- DePuy Synthes, Zimmer Biomet, Smith+Nephew and Medtronic each have a sizeable international presence. The group has the most exposure in China, where the national rollout of a volume-based procurement strategy resulted in drastic price cuts in joint replacement, spine and trauma.
- Globus Medical is expected to cross the $1 billion mark in revenues this year. The company’s spine portfolio and expansion of its ExcelsiusGPS robotic navigation platform have driven its growth.
Orthopedic Market Segment Sales
Taking a deeper look at the orthopedic market, we split our segments into joint replacement, spine, trauma, sports medicine and orthobiologics. While each market segment had a different tale in 2022, they all exceeded pre-pandemic sales, something we didn’t see in 2021. Exhibit 2 illustrates a four-year sales history for each segment.
Exhibit 2: Orthopedic Market Segment Sales 2019-2022 ($ Millions)
A few observations about each market segment’s performance in 2022:
- Joint replacement revenue is projected to reach $20 billion, with growth of +3.3%. While joint replacement is among the categories that have been slowest to recover from the pandemic, hip and knee sales accelerated in 2022. We don’t anticipate a large number of cases coming back into the funnel at one time; instead, a modest tailwind from the backlog of procedures will continue into 2023 and maybe 2024.
- Spine sales are expected to reach $10.1 billion, with growth of +3.2%. Mid-tier players continue to take share in the spine space. Globus Medical and ATEC are two notable players with solid performances. The pending merger of Orthofix and SeaSpine is anticipated to cause some disruption in the space next year.
- Trauma sales are expected to reach $8 billion, with growth of +3.8%. While the trauma market was the most insulated segment from the effects of the pandemic, its 2022 growth is slightly below pre-COVID rates. Executives at the largest orthopedic companies showed no concerns over the dip, chalking it up to general market softness. The fast-growing foot and ankle segment remains the outlier in the trauma market. Paragon 28 and Treace Medical Concepts will grow 22% and 45% this year, respectively.
- Sports medicine revenue is expected to surpass $6.3 billion, with growth of +4.4%. The sports medicine market has yet to return to its pre-COVID growth rate of +5% due to several factors. Procedure volumes have been slower to recover in specific segments like joint preservation. Sports medicine companies have also faced capital equipment supply constraints, hurting their ability to build, sell and deliver products.
- Orthobiologics sales are expected to reach $5.3 billion, with growth of +2.4%. This segment experienced a significant decline during the pandemic. Further, viscosupplements have undergone considerable changes in reimbursement, which has had a varied impact on companies. Looking forward, the combined portfolio of SeaSpine, Orthofix and Orthofix’s partnership with MTF Biologics creates an extensive and varied portfolio that will benefit the merged company.
2023 Performance Outlook
We expect orthopedic companies and, thus, the overall industry to continue on an upward trajectory in 2023. As we think about the market holistically, a few themes resonate for next year:
- Hospital staffing storages will constrain the moderate procedure backlog tailwind.
- The largest companies will disproportionately focus their R&D efforts on enabling technology and digital solutions, particularly for joint replacement and spine.
- Companies will continue to chase opportunities in outpatient and ASC settings, enhancing their implant and technology portfolios and selling strategies.
- The OUS environment will pose significant challenges for companies. Volume-based procurement in China is impacting joint replacement, spine and trauma players, and we expect more segments to come under national tenders. Additionally, looming EU MDR deadlines are forcing companies to consider which products to prioritize and keep on the market.
- Orthopedics did not face a favorable M&A and IPO environment in 2022. It remains to be seen whether 2023 will bring improvements. However, companies are positioning themselves to capitalize on market shifts.
All orthopedic companies will likely contend with macro market pressures, such as supply chain disruptions, staffing shortages and inflation. Of course, they’ve encountered similar challenges recently and have mainly managed to execute with skill to ensure positive sales growth.
Looking for deeper insights? This market overview was based on the recently published webinar, “Orthopedic Market 2022 Projections & 2023 Outlook.”
Orthopedic market sales are expected to surpass $55.5 billion in 2022, growing +3.4% versus 2021, according to our estimates. While the industry faced a third year of disruption, its 2022 growth closely reflects the pre-COVID average growth rate and outperforms our original estimate of 3.2%.
“It feels like the orthopedic industry is about 95%...
Orthopedic market sales are expected to surpass $55.5 billion in 2022, growing +3.4% versus 2021, according to our estimates. While the industry faced a third year of disruption, its 2022 growth closely reflects the pre-COVID average growth rate and outperforms our original estimate of 3.2%.
“It feels like the orthopedic industry is about 95% of the way back to normalized capacity,” said Mike Evers, ORTHOWORLD’s Senior Market Analyst. “Of course, we expect this year’s macroeconomic pressures, such as supply chain disruption, inflation and staffing shortages, to persist into 2023.”
Mr. Evers outlined end-of-year sales projections for the top orthopedic companies and highlighted the performance of each market segment in our latest webinar, “Orthopedic Market 2022 Projections & 2023 Outlook.” Data in the webinar and highlighted within this article come from our newly-updated Orthopedic Company Revenue Matrix, a comprehensive collection of company sales data that is downloadable and integrable into your models.
Orthopedic Company Performance
The largest orthopedic companies are projected to combine for more than $36.7 billion in revenue and growth of 2.2% vs. 2021, as seen in Exhibit 1.
Exhibit 1: Orthopedic Companies over $1 Billion ($ Millions)
| Company | FY22P | FY21 | $ Chg | % Chg |
|---|---|---|---|---|
| Stryker | $9,369.5 | $8,969.8 | $399.7 | 4.5% |
| DePuy Synthes | $8,620.0 | $8,584.7 | $35.2 | 0.4% |
| Zimmer Biomet | $6,884.8 | $6,827.3 | $57.5 | 0.8% |
| Smith+Nephew | $3,583.7 | $3,644.8 | ($61.1) | (1.7%) |
| Medtronic | $3,177.7 | $3,109.4 | $68.2 | 2.2% |
| Arthrex | $2,834.2 | $2,679.5 | $154.7 | 5.8% |
| NuVasive | $1,206.5 | $1,139.0 | $67.5 | 5.9% |
| Globus Medical | $1,025.1 | $958.1 | $67.0 | 7% |
| Total | $36,701.4 | $35,912.6 | $788.8 | 2.2% |
A few observations about this tier:
- Stryker saw strong performances from its knee, hip, extremities and enabling technology portfolios, which extended its lead as the top orthopedic company.
- DePuy Synthes, Zimmer Biomet, Smith+Nephew and Medtronic each have a sizeable international presence. The group has the most exposure in China, where the national rollout of a volume-based procurement strategy resulted in drastic price cuts in joint replacement, spine and trauma.
- Globus Medical is expected to cross the $1 billion mark in revenues this year. The company’s spine portfolio and expansion of its ExcelsiusGPS robotic navigation platform have driven its growth.
Orthopedic Market Segment Sales
Taking a deeper look at the orthopedic market, we split our segments into joint replacement, spine, trauma, sports medicine and orthobiologics. While each market segment had a different tale in 2022, they all exceeded pre-pandemic sales, something we didn’t see in 2021. Exhibit 2 illustrates a four-year sales history for each segment.
Exhibit 2: Orthopedic Market Segment Sales 2019-2022 ($ Millions)
A few observations about each market segment’s performance in 2022:
- Joint replacement revenue is projected to reach $20 billion, with growth of +3.3%. While joint replacement is among the categories that have been slowest to recover from the pandemic, hip and knee sales accelerated in 2022. We don’t anticipate a large number of cases coming back into the funnel at one time; instead, a modest tailwind from the backlog of procedures will continue into 2023 and maybe 2024.
- Spine sales are expected to reach $10.1 billion, with growth of +3.2%. Mid-tier players continue to take share in the spine space. Globus Medical and ATEC are two notable players with solid performances. The pending merger of Orthofix and SeaSpine is anticipated to cause some disruption in the space next year.
- Trauma sales are expected to reach $8 billion, with growth of +3.8%. While the trauma market was the most insulated segment from the effects of the pandemic, its 2022 growth is slightly below pre-COVID rates. Executives at the largest orthopedic companies showed no concerns over the dip, chalking it up to general market softness. The fast-growing foot and ankle segment remains the outlier in the trauma market. Paragon 28 and Treace Medical Concepts will grow 22% and 45% this year, respectively.
- Sports medicine revenue is expected to surpass $6.3 billion, with growth of +4.4%. The sports medicine market has yet to return to its pre-COVID growth rate of +5% due to several factors. Procedure volumes have been slower to recover in specific segments like joint preservation. Sports medicine companies have also faced capital equipment supply constraints, hurting their ability to build, sell and deliver products.
- Orthobiologics sales are expected to reach $5.3 billion, with growth of +2.4%. This segment experienced a significant decline during the pandemic. Further, viscosupplements have undergone considerable changes in reimbursement, which has had a varied impact on companies. Looking forward, the combined portfolio of SeaSpine, Orthofix and Orthofix’s partnership with MTF Biologics creates an extensive and varied portfolio that will benefit the merged company.
2023 Performance Outlook
We expect orthopedic companies and, thus, the overall industry to continue on an upward trajectory in 2023. As we think about the market holistically, a few themes resonate for next year:
- Hospital staffing storages will constrain the moderate procedure backlog tailwind.
- The largest companies will disproportionately focus their R&D efforts on enabling technology and digital solutions, particularly for joint replacement and spine.
- Companies will continue to chase opportunities in outpatient and ASC settings, enhancing their implant and technology portfolios and selling strategies.
- The OUS environment will pose significant challenges for companies. Volume-based procurement in China is impacting joint replacement, spine and trauma players, and we expect more segments to come under national tenders. Additionally, looming EU MDR deadlines are forcing companies to consider which products to prioritize and keep on the market.
- Orthopedics did not face a favorable M&A and IPO environment in 2022. It remains to be seen whether 2023 will bring improvements. However, companies are positioning themselves to capitalize on market shifts.
All orthopedic companies will likely contend with macro market pressures, such as supply chain disruptions, staffing shortages and inflation. Of course, they’ve encountered similar challenges recently and have mainly managed to execute with skill to ensure positive sales growth.
Looking for deeper insights? This market overview was based on the recently published webinar, “Orthopedic Market 2022 Projections & 2023 Outlook.”
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Carolyn LaWell is ORTHOWORLD's Chief Content Officer. She joined ORTHOWORLD in 2012 to oversee its editorial and industry education. She previously served in editor roles at B2B magazines and newspapers.
