Orthopedic Market Size and Share
April 2024
Mike Evers, Senior Market Analyst
Welcome to our overview of the orthopedic market. This page and the Segment Reports build upon our work in THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT®. The orthopedic market ran hot in 2023, growing several percentage points above its historical average.
The Market at a Glance
The orthopedic market grew +6.3% in 2023 to $59 billion worldwide. Surgeries lost or deferred during the pandemic returned to the funnel and elevated orthopedic procedure volumes beyond historical norms. We expect the tailwind will last through most of 2024.
Orthopedic Sales by Product Segment
Joint replacement volumes rebounded sharply in 2023 after almost three years of lagging recovery compared to other orthopedic segments. The knee and hip replacement categories finished well above their historical averages. Trauma also bounced back after a softer 2022 and the impact of volume-based procurement (VBP) in China.
Orthobiologics faced reimbursement changes in viscosupplements and availability constraints on allografts stemming from an industry-wide reagent supply disruption. Sports medicine will go through the VBP tender process in China during 2024, and the early impacts from that change hit some companies in late 2023.
Exhibit 1: Worldwide Orthopedic Sales by Product Segment ($millions)
| Company | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $21,474.0 | $20,007.8 | $1,466.3 | 7.3% |
| Knees | $10,097.6 | $9,264.4 | $833.2 | 9% |
| Hips | $8,369.0 | $7,968.0 | $400.9 | 5% |
| Extremities | $3,007.5 | $2,775.4 | $232.2 | 8.4% |
| Spine | $10,412.6 | $9,868.2 | $544.4 | 5.5% |
| Trauma | $8,532.4 | $8,001.0 | $531.4 | 6.6% |
| Sports Medicine | $6,775.6 | $6,301.1 | $474.5 | 7.5% |
| Orthobiologics | $5,500.3 | $5,317.9 | $182.4 | 3.4% |
| Enabling Technology | $1,307.0 | $1,192.3 | $114.6 | 9.6% |
| Other | $5,002.4 | $4,803.5 | $199.0 | 4.1% |
| Market Total | $59,004.3 | $55,491.7 | $3,512.5 | 6.3% |
Market Forecast
The orthopedic market’s post-pandemic recovery gathered momentum in the second half of 2022 and improved further in 2023. Surgical volumes for large joints in the U.S. ran well above historical norms and drove much of the year’s upside. The market finished 2023 with $59 billion in sales and 6.3% growth.
We expect some remaining volume upside in the coming quarters before growth rates normalize. However, demographic trends and the expansion of technology could modestly accelerate market growth in the mid-term.
Exhibit 2: Worldwide Orthopedic Sales by Year ($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 68 public and private companies by segment from 2016 through 2023.
We based our orthopedic market forecast on many factors, including stabilizing surgical volumes, the impact of GLP-1 weight loss drugs and changing patient behavior patterns.
More Stable Procedure Volumes and Seasonality
The catch-up period for deferred and canceled surgeries likely peaked in mid-2023, but most orthopedic players expect a modest tailwind through 2024. The seasonal rhythms of the industry also normalized during 2023. While the pandemic period certainly changed orthopedics, the last two years have injected some needed certainty and predictability back into the market.
GLP-1 Drugs Unlikely to Impact the Orthopedic Industry
The efficacy of GLP-1 weight loss drugs brought further uncertainty to orthopedic investors in the second half of 2023. However, initial concerns over the impact on joint replacement and other orthopedic procedures were likely overblown. The consensus among those executives is that the drugs will have no negative impact on orthopedic procedure volumes and could be a modest tailwind in the longer term if lower BMIs create more surgical candidates.
Changing Patient Behavior Around Orthopedic Surgery
In mid-2023, Zimmer Biomet noted the early signs of a changing paradigm among patients eligible for orthopedic procedures. The company believes technologies like robotics, increased access to orthopedic ASCs and more flexibility due to remote work make patients more likely to undergo procedures. Improved patient confidence could further elevate the largest orthopedic segments.
Sales by Region
The United States and certain European countries enjoyed a volume tailwind from backlogged procedures in 2023. According to Stryker CEO Kevin Lobo, the APAC and EMEA regions are at an inflection point for robotics and currently resemble the U.S. robotics market of five or six years ago.
Orthopedic companies faced plenty of headwinds outside the U.S. in 2023. Sanctions on Russia and the simultaneous impacts from VBP and anti-corruption initiatives in China offset growth in those markets. However, China remains a strategically important market for orthopedic players as it ultimately grows to become the largest healthcare market in the world.
The European Union’s Medical Device Regulation (MDR) remains a significant expense and regulatory hurdle for companies opting to stay in that market. Orthofix, for example, accumulated $9.5 million in MDR expenses in 2023 and expects an annual impact of around $3 million.
Exhibit 3: Orthopedic Sales by Region ($millions)
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $39,581.1 | $37,059.8 | $2,521.3 | 6.8% |
| OUS | $19,423.2 | $18,431.9 | $991.3 | 5.4% |
| EMEA | $10,744.2 | $10,100.9 | $643.3 | 6.4% |
| APAC | $6,698.1 | $6,460.8 | $237.3 | 3.7% |
| ROW | $1,980.9 | $1,870.2 | $110.7 | 5.9% |
| Market Total | $59,004.3 | $55,491.7 | $3,512.5 | 6.3% |
Exhibit 4: Orthopedic Market Share by Region ($millions)
Top Companies
The orthopedic market has more than 1,000 active companies, which we categorize into five tiers based on global annual revenue:
- Over $1 billion
- Between $400 million and $999 million
- Between $200 million and $399 million
- Between $100 million and $199 million
- All other companies below $100 million
Our estimates show fewer than 50 companies generate more than $100 million in orthopedic sales. Those companies account for approximately 85% of all orthopedic sales. Consolidation remains a significant force in the market, and orthopedic M&A transactions accelerated in 2023 for the first time since the pandemic.
Exhibit 5: Orthopedic Market Share by Company Tier ($millions)
Companies Over $1 Billion
The seven companies with over $1 billion in annual orthopedic revenue make up two-thirds of the global market and totaled $39 billion in orthopedic sales during 2023.
The top four companies in this group dominate the joint replacement market and enjoyed volume tailwinds in 2023 that drove above-market growth. Meanwhile, Medtronic saw its closest competitor, Globus Medical, leap forward with its NuVasive merger.
Exhibit 6: Orthopedic Sales for Top-Tier Players ($millions)
| Company | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Stryker | $10,360.4 | $9,425.5 | $934.9 | 9.9% |
| DePuy Synthes | $8,941.6 | $8,586.4 | $355.2 | 4.1% |
| Zimmer Biomet | $7,394.3 | $6,939.9 | $454.4 | 6.5% |
| Smith+Nephew | $3,747.5 | $3,549.4 | $198.2 | 5.6% |
| Medtronic | $3,238.0 | $3,146.4 | $91.6 | 2.9% |
| Arthrex | $2,990.7 | $2,828.6 | $162.2 | 5.7% |
| Globus Medical | $2,395.8 | $2,224.8 | $171.0 | 7.7% |
| Subtotal | $39,068.4 | $36,700.9 | $2,367.5 | 6.5% |
| Market Total | $59,004.3 | $55,491.7 | $3,512.5 | 6.3% |
Here are a few of the developments that we’re watching among the top-tier players.
Joint Replacement Uptick
How far into 2024 will joint replacement procedure volume tailwinds persist? Industry leaders agree it will carry through most of the year before returning to more baseline numbers. However, players like Stryker and Zimmer Biomet see promising demographic trends in the segment that could drive a long-term higher market growth rate.
Technology-Driven M&A
We expect orthopedic M&A to remain active in 2024 as technology becomes increasingly important, especially in the spine market. Spine is the most active segment at 28% of all orthopedic M&A transactions since 2016, while digital-focused transactions accelerated since the pandemic. Despite relatively low market adoption, these technologies exert a powerful influence on implant market share.
VBP in China
Many multinational companies in this tier have weathered multiple price cuts on orthopedic products in China. Sports medicine will join joint replacement, trauma and spine as nationally tendered segments in 2024. While the changes drove some global players out of China, the persistence of others underscores the vital importance of the Chinese market.
Get More Orthopedic Market Data. Download the Orthopedic Revenue Matrix for our most complete and granular numbers. It contains worldwide orthopedic sales for 68 public and private companies by segment from 2016 through 2023.
Companies Between $400 Million and $999 Million
The nine companies in this tier generated $5.1 billion in 2023 sales, comprising about 9% of the overall orthopedic market. This tier includes some of the best growth stories in orthopedics. However, many of those same companies have much to prove in 2024.
More of the Same at Enovis
The company is consistently among the best performers in orthopedics and once again outgrew the market by a fair margin. Enovis’ aggressive acquisitive strategy in high-growth markets, proven integration capabilities and efficient approach to enabling technology make it a formidable contender. To cap off a strong 2023, Enovis scooped up fast-growing LimaCorporate.
Bidding Adieu to ZimVie Spine
After three years of steeply declining spine sales, ZimVie threw in the towel on the segment to become a pure-play dental company. After Zimmer Biomet cast off its lagging business, ZimVie attempted to right-size the spine business but couldn’t carve out a strong niche for its portfolio. Ultimately, ZimVie sold its spine assets to H.I.G. Capital for $375 million in total consideration. The company has since rebranded as Highridge Medical.
ATEC Not Shy About Success
Over recent years, disruption in the spine market has provided ATEC the perfect opportunity to position itself as an alternative to larger and potentially distracted companies. ATEC holds approximately 5% market share in spine and said the remaining market was 35% disrupted and 60% apathetic. It is hard to argue with ATEC’s success. The company’s five-year CAGR since its 2018 turnaround is nearly 40%.
Companies Between $200 Million and $399 Million
The nine companies in this tier totaled $2.5 billion in sales, making up just over 4% of the orthopedic market. Exactech endured product recalls, while Enovis acquired LimaCorporate at the start of 2024.
More Recall Woes at Exactech
The company voluntarily initiated recalls on its knee, hip and ankle replacement products between 2021 and 2023 due to defective packaging, which led to oxidation and increased risk of product failure. In early 2024, FDA alerted patients and healthcare providers about risks associated with the company’s shoulder replacement implants after Exactect declined to initiate a voluntary recall.
LimaCorporate Joins Enovis
With its ninth acquisition since 2020, Enovis acquired LimaCorporate for $850 million in early 2024. Lima brings a diversified portfolio that has grown at a high single-digit CAGR over the last 10 years, increasing into the low teens in the previous several years. Enovis expects LimaCorporate to generate between $290 million and $300 million in 2024.
Medartis Wins Lower Extremity Share
The rollout and remarkable success of KeriMedical products in the EMEA region helped Medartis pass the $100 million milestone there for the first time. Lower extremity sales surged 41% in EMEA and represent an area of strategic importance and focus for the company.
Companies Between $100 Million and $199 Million
The 20 companies in this revenue tier generated $3 billion in 2023, constituting 5.2% of the orthopedic market. Treace Medical, Vericel, OrthoPediatrics, Skeletal Dynamics and SI-BONE drove sales growth above 20% for the year.
Treace Medical’s Competitive Edge
Treace Medical isn’t surprised that orthopedics’ largest players want to tap into the $5 billion bunion treatment market. “We’re way ahead,” said company founder and CEO John Treace, pointing to his company’s IP, surgeon retention rates and focused sales force.
Weigao Hit With VBP Impact
While many domestic Chinese orthopedic companies enjoy a higher volume share in the wake of successive VBP waves, the resulting price cuts and adjustments can sting. Weigao’s revenues declined nearly 38% in 2023 and cited ex-factory price cuts and channel inventory gap discounts as primary drivers of the drop.
OrthoPediatrics Racing to Market Dominance
While the market’s top players pay less attention to pediatric orthopedics, one company is quickly amassing share. OrthoPediatrics has quietly developed into one of the more acquisitive companies in the industry, and has positioned itself to control up to 50% of the pediatric trauma and deformity market in the next few years.
Important Trends in Orthopedics
Orthopedic M&A Punches Above Its Weight Class
We tracked 29 orthopedic M&A announcements and 24 closed transactions in 2023, marking the first yearly increase since 2020. Orthopedic valuations and multiples compare favorably to overall medtech. Targets are now split mainly into two camps: commercial stage or highly differentiated companies with a clear path to market adoption. A survey of recent deals shows a bias toward commercialized targets. Enovis’ deals for LimaCorporate, Novastep and Mathys fit the profile.
Companies of all sizes are investing in new technologies, with an increasing focus on integrated monitoring through more of the patient journey to enable predictive analytics.
A New Class of Buyer Emerges
While Stryker and its globalized peers will continue ranking at the top of M&A activity, a new class of buyer emerged in names like Enovis and OrthoPediatrics. Since 2020, those companies have been in the top five for most orthopedic acquisitions.
Funding Pace Slows, Check Sizes Grow
The unprecedented market conditions of 2021 drove the acceleration of orthopedic funding as investors sought to deploy a war chest of capital in the immediate aftermath of the pandemic. However, the number of investments declined in the last two years. The 28 investments announcements during 2023 represented a 40% drop-off from the 2021 activity peak. However, the average investment increased by more than $11 million (+72%) since 2020 as investors prioritized later-stage companies and big-ticket items that can pave a path to profitability.
Further Reading
Thanks for visiting! Need more insight into the orthopedic market? Questions and comments are always welcome. You can reach me by email. I’ll be back soon with updates to this page as we complete our projections for the 2023 finish.
The posts below feature some of the biggest developments and trends in orthopedics that we’re watching for 2024.
Our overview of the $59 billion orthopedic market includes up-to-date information on forecasted growth, the top companies and industry-driving trends.
April 2024
Mike Evers, Senior Market Analyst
Welcome to our overview of the orthopedic market. This page and the Segment Reports build upon our work in THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT®. The orthopedic market ran hot in 2023, growing several percentage points above its historical average.
The Market at a Glance
The orthopedic market grew +6.3% in 2023 to $59 billion worldwide. Surgeries lost or deferred during the pandemic returned to the funnel and elevated orthopedic procedure volumes beyond historical norms. We expect the tailwind will last through most of 2024.
Orthopedic Sales by Product Segment
Joint replacement volumes rebounded sharply in 2023 after almost three years of lagging recovery compared to other orthopedic segments. The knee and hip replacement categories finished well above their historical averages. Trauma also bounced back after a softer 2022 and the impact of volume-based procurement (VBP) in China.
Orthobiologics faced reimbursement changes in viscosupplements and availability constraints on allografts stemming from an industry-wide reagent supply disruption. Sports medicine will go through the VBP tender process in China during 2024, and the early impacts from that change hit some companies in late 2023.
Exhibit 1: Worldwide Orthopedic Sales by Product Segment ($millions)
| Company | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $21,474.0 | $20,007.8 | $1,466.3 | 7.3% |
| Knees | $10,097.6 | $9,264.4 | $833.2 | 9% |
| Hips | $8,369.0 | $7,968.0 | $400.9 | 5% |
| Extremities | $3,007.5 | $2,775.4 | $232.2 | 8.4% |
| Spine | $10,412.6 | $9,868.2 | $544.4 | 5.5% |
| Trauma | $8,532.4 | $8,001.0 | $531.4 | 6.6% |
| Sports Medicine | $6,775.6 | $6,301.1 | $474.5 | 7.5% |
| Orthobiologics | $5,500.3 | $5,317.9 | $182.4 | 3.4% |
| Enabling Technology | $1,307.0 | $1,192.3 | $114.6 | 9.6% |
| Other | $5,002.4 | $4,803.5 | $199.0 | 4.1% |
| Market Total | $59,004.3 | $55,491.7 | $3,512.5 | 6.3% |
Market Forecast
The orthopedic market’s post-pandemic recovery gathered momentum in the second half of 2022 and improved further in 2023. Surgical volumes for large joints in the U.S. ran well above historical norms and drove much of the year’s upside. The market finished 2023 with $59 billion in sales and 6.3% growth.
We expect some remaining volume upside in the coming quarters before growth rates normalize. However, demographic trends and the expansion of technology could modestly accelerate market growth in the mid-term.
Exhibit 2: Worldwide Orthopedic Sales by Year ($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 68 public and private companies by segment from 2016 through 2023.
We based our orthopedic market forecast on many factors, including stabilizing surgical volumes, the impact of GLP-1 weight loss drugs and changing patient behavior patterns.
More Stable Procedure Volumes and Seasonality
The catch-up period for deferred and canceled surgeries likely peaked in mid-2023, but most orthopedic players expect a modest tailwind through 2024. The seasonal rhythms of the industry also normalized during 2023. While the pandemic period certainly changed orthopedics, the last two years have injected some needed certainty and predictability back into the market.
GLP-1 Drugs Unlikely to Impact the Orthopedic Industry
The efficacy of GLP-1 weight loss drugs brought further uncertainty to orthopedic investors in the second half of 2023. However, initial concerns over the impact on joint replacement and other orthopedic procedures were likely overblown. The consensus among those executives is that the drugs will have no negative impact on orthopedic procedure volumes and could be a modest tailwind in the longer term if lower BMIs create more surgical candidates.
Changing Patient Behavior Around Orthopedic Surgery
In mid-2023, Zimmer Biomet noted the early signs of a changing paradigm among patients eligible for orthopedic procedures. The company believes technologies like robotics, increased access to orthopedic ASCs and more flexibility due to remote work make patients more likely to undergo procedures. Improved patient confidence could further elevate the largest orthopedic segments.
Sales by Region
The United States and certain European countries enjoyed a volume tailwind from backlogged procedures in 2023. According to Stryker CEO Kevin Lobo, the APAC and EMEA regions are at an inflection point for robotics and currently resemble the U.S. robotics market of five or six years ago.
Orthopedic companies faced plenty of headwinds outside the U.S. in 2023. Sanctions on Russia and the simultaneous impacts from VBP and anti-corruption initiatives in China offset growth in those markets. However, China remains a strategically important market for orthopedic players as it ultimately grows to become the largest healthcare market in the world.
The European Union’s Medical Device Regulation (MDR) remains a significant expense and regulatory hurdle for companies opting to stay in that market. Orthofix, for example, accumulated $9.5 million in MDR expenses in 2023 and expects an annual impact of around $3 million.
Exhibit 3: Orthopedic Sales by Region ($millions)
| Region | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $39,581.1 | $37,059.8 | $2,521.3 | 6.8% |
| OUS | $19,423.2 | $18,431.9 | $991.3 | 5.4% |
| EMEA | $10,744.2 | $10,100.9 | $643.3 | 6.4% |
| APAC | $6,698.1 | $6,460.8 | $237.3 | 3.7% |
| ROW | $1,980.9 | $1,870.2 | $110.7 | 5.9% |
| Market Total | $59,004.3 | $55,491.7 | $3,512.5 | 6.3% |
Exhibit 4: Orthopedic Market Share by Region ($millions)
Top Companies
The orthopedic market has more than 1,000 active companies, which we categorize into five tiers based on global annual revenue:
- Over $1 billion
- Between $400 million and $999 million
- Between $200 million and $399 million
- Between $100 million and $199 million
- All other companies below $100 million
Our estimates show fewer than 50 companies generate more than $100 million in orthopedic sales. Those companies account for approximately 85% of all orthopedic sales. Consolidation remains a significant force in the market, and orthopedic M&A transactions accelerated in 2023 for the first time since the pandemic.
Exhibit 5: Orthopedic Market Share by Company Tier ($millions)
Companies Over $1 Billion
The seven companies with over $1 billion in annual orthopedic revenue make up two-thirds of the global market and totaled $39 billion in orthopedic sales during 2023.
The top four companies in this group dominate the joint replacement market and enjoyed volume tailwinds in 2023 that drove above-market growth. Meanwhile, Medtronic saw its closest competitor, Globus Medical, leap forward with its NuVasive merger.
Exhibit 6: Orthopedic Sales for Top-Tier Players ($millions)
| Company | FY23 | FY22 | $ Chg | % Chg |
|---|---|---|---|---|
| Stryker | $10,360.4 | $9,425.5 | $934.9 | 9.9% |
| DePuy Synthes | $8,941.6 | $8,586.4 | $355.2 | 4.1% |
| Zimmer Biomet | $7,394.3 | $6,939.9 | $454.4 | 6.5% |
| Smith+Nephew | $3,747.5 | $3,549.4 | $198.2 | 5.6% |
| Medtronic | $3,238.0 | $3,146.4 | $91.6 | 2.9% |
| Arthrex | $2,990.7 | $2,828.6 | $162.2 | 5.7% |
| Globus Medical | $2,395.8 | $2,224.8 | $171.0 | 7.7% |
| Subtotal | $39,068.4 | $36,700.9 | $2,367.5 | 6.5% |
| Market Total | $59,004.3 | $55,491.7 | $3,512.5 | 6.3% |
Here are a few of the developments that we’re watching among the top-tier players.
Joint Replacement Uptick
How far into 2024 will joint replacement procedure volume tailwinds persist? Industry leaders agree it will carry through most of the year before returning to more baseline numbers. However, players like Stryker and Zimmer Biomet see promising demographic trends in the segment that could drive a long-term higher market growth rate.
Technology-Driven M&A
We expect orthopedic M&A to remain active in 2024 as technology becomes increasingly important, especially in the spine market. Spine is the most active segment at 28% of all orthopedic M&A transactions since 2016, while digital-focused transactions accelerated since the pandemic. Despite relatively low market adoption, these technologies exert a powerful influence on implant market share.
VBP in China
Many multinational companies in this tier have weathered multiple price cuts on orthopedic products in China. Sports medicine will join joint replacement, trauma and spine as nationally tendered segments in 2024. While the changes drove some global players out of China, the persistence of others underscores the vital importance of the Chinese market.
Get More Orthopedic Market Data. Download the Orthopedic Revenue Matrix for our most complete and granular numbers. It contains worldwide orthopedic sales for 68 public and private companies by segment from 2016 through 2023.
Companies Between $400 Million and $999 Million
The nine companies in this tier generated $5.1 billion in 2023 sales, comprising about 9% of the overall orthopedic market. This tier includes some of the best growth stories in orthopedics. However, many of those same companies have much to prove in 2024.
More of the Same at Enovis
The company is consistently among the best performers in orthopedics and once again outgrew the market by a fair margin. Enovis’ aggressive acquisitive strategy in high-growth markets, proven integration capabilities and efficient approach to enabling technology make it a formidable contender. To cap off a strong 2023, Enovis scooped up fast-growing LimaCorporate.
Bidding Adieu to ZimVie Spine
After three years of steeply declining spine sales, ZimVie threw in the towel on the segment to become a pure-play dental company. After Zimmer Biomet cast off its lagging business, ZimVie attempted to right-size the spine business but couldn’t carve out a strong niche for its portfolio. Ultimately, ZimVie sold its spine assets to H.I.G. Capital for $375 million in total consideration. The company has since rebranded as Highridge Medical.
ATEC Not Shy About Success
Over recent years, disruption in the spine market has provided ATEC the perfect opportunity to position itself as an alternative to larger and potentially distracted companies. ATEC holds approximately 5% market share in spine and said the remaining market was 35% disrupted and 60% apathetic. It is hard to argue with ATEC’s success. The company’s five-year CAGR since its 2018 turnaround is nearly 40%.
Companies Between $200 Million and $399 Million
The nine companies in this tier totaled $2.5 billion in sales, making up just over 4% of the orthopedic market. Exactech endured product recalls, while Enovis acquired LimaCorporate at the start of 2024.
More Recall Woes at Exactech
The company voluntarily initiated recalls on its knee, hip and ankle replacement products between 2021 and 2023 due to defective packaging, which led to oxidation and increased risk of product failure. In early 2024, FDA alerted patients and healthcare providers about risks associated with the company’s shoulder replacement implants after Exactect declined to initiate a voluntary recall.
LimaCorporate Joins Enovis
With its ninth acquisition since 2020, Enovis acquired LimaCorporate for $850 million in early 2024. Lima brings a diversified portfolio that has grown at a high single-digit CAGR over the last 10 years, increasing into the low teens in the previous several years. Enovis expects LimaCorporate to generate between $290 million and $300 million in 2024.
Medartis Wins Lower Extremity Share
The rollout and remarkable success of KeriMedical products in the EMEA region helped Medartis pass the $100 million milestone there for the first time. Lower extremity sales surged 41% in EMEA and represent an area of strategic importance and focus for the company.
Companies Between $100 Million and $199 Million
The 20 companies in this revenue tier generated $3 billion in 2023, constituting 5.2% of the orthopedic market. Treace Medical, Vericel, OrthoPediatrics, Skeletal Dynamics and SI-BONE drove sales growth above 20% for the year.
Treace Medical’s Competitive Edge
Treace Medical isn’t surprised that orthopedics’ largest players want to tap into the $5 billion bunion treatment market. “We’re way ahead,” said company founder and CEO John Treace, pointing to his company’s IP, surgeon retention rates and focused sales force.
Weigao Hit With VBP Impact
While many domestic Chinese orthopedic companies enjoy a higher volume share in the wake of successive VBP waves, the resulting price cuts and adjustments can sting. Weigao’s revenues declined nearly 38% in 2023 and cited ex-factory price cuts and channel inventory gap discounts as primary drivers of the drop.
OrthoPediatrics Racing to Market Dominance
While the market’s top players pay less attention to pediatric orthopedics, one company is quickly amassing share. OrthoPediatrics has quietly developed into one of the more acquisitive companies in the industry, and has positioned itself to control up to 50% of the pediatric trauma and deformity market in the next few years.
Important Trends in Orthopedics
Orthopedic M&A Punches Above Its Weight Class
We tracked 29 orthopedic M&A announcements and 24 closed transactions in 2023, marking the first yearly increase since 2020. Orthopedic valuations and multiples compare favorably to overall medtech. Targets are now split mainly into two camps: commercial stage or highly differentiated companies with a clear path to market adoption. A survey of recent deals shows a bias toward commercialized targets. Enovis’ deals for LimaCorporate, Novastep and Mathys fit the profile.
Companies of all sizes are investing in new technologies, with an increasing focus on integrated monitoring through more of the patient journey to enable predictive analytics.
A New Class of Buyer Emerges
While Stryker and its globalized peers will continue ranking at the top of M&A activity, a new class of buyer emerged in names like Enovis and OrthoPediatrics. Since 2020, those companies have been in the top five for most orthopedic acquisitions.
Funding Pace Slows, Check Sizes Grow
The unprecedented market conditions of 2021 drove the acceleration of orthopedic funding as investors sought to deploy a war chest of capital in the immediate aftermath of the pandemic. However, the number of investments declined in the last two years. The 28 investments announcements during 2023 represented a 40% drop-off from the 2021 activity peak. However, the average investment increased by more than $11 million (+72%) since 2020 as investors prioritized later-stage companies and big-ticket items that can pave a path to profitability.
Further Reading
Thanks for visiting! Need more insight into the orthopedic market? Questions and comments are always welcome. You can reach me by email. I’ll be back soon with updates to this page as we complete our projections for the 2023 finish.
The posts below feature some of the biggest developments and trends in orthopedics that we’re watching for 2024.
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