Orthopedic Navigation Systems Market Size, Share & Trends Analysis Report By Application (Knee, Hip, Spine), By Technology (Electromagnetic, Optical), By End-use (Hospitals, Ambulatory Surgical Centers), By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global orthopedic navigation systems market size was valued at USD 2.36 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 12.5% from 2023 to 2030. The rising geriatric population & cases of joint reconstruction, growing healthcare expenditure, and high awareness levels among patients & healthcare professionals are expected to drive the market growth over the forecast years. The rise in the prevalence of minimally invasive surgeries is expected to drive the demand for this market. There is a rise in orthopedic conditions such as ligamentous knee injuries, osteoarthritis, rheumatoid arthritis, and osteoporosis. These ailments affect the body's musculoskeletal system, which comprises muscles, bones, joints, nerves, ligaments, cartilage, and tendons. This reduces the range of motion, stiffness, swelling, and muscle pain that later requires surgical treatment.

According to the Centers for Disease Control and Prevention (CDC), the prevalence of arthritis is expected to increase in the upcoming decades. According to the Centers for Disease Control and Prevention, 54.4 million (or 1 in 4) U.S. adults have some form of arthritis, which is expected to reach 78 million by 2040. Among them, two-thirds are expected to be women. Also, by 2040, the estimated number of adults reporting arthritis will be 34.6 million, 43.2% of adults with arthritis. This indicates the potential need for navigation systems for orthopedic surgeries in the foreseeable future. This indicates the potential need for navigation systems for orthopedic surgeries in the foreseeable future.

Facing the outbreak of COVID-19, many countries made the required decision to abandon all non-emergency surgical procedures to free up caregivers for patients with COVID-19. The pandemic has adversely affected the overall market due to restrictions on non-emergency procedures, resulting in delays to several procedures for orthopedic companies. For instance, Stryker’s net revenue decreased by 9.1% from last year, and Smith & Nephew’s revenue decreased by 11.2% in 2020 from 2019. However, from the 3rd quarter, the market rapidly started recovering as hospitals gradually resumed elective procedures. Therefore, in the upcoming years, the market for orthopedic navigation systems will be projected to recover rapidly, assuming the growing demand for surgical procedures.

Associated advantages of Computer-assisted Surgeries (CAS), such as low blood loss, shorter hospital stays, and easier rehabilitation, are other factors expected to drive the industry revenue. CAS is instrumental in delivering accurate implant alignment, provides improved functionality, improves quality-adjusted life year, and causes less pain & tissue damage and fewer complications. Due to the abovementioned factors, the demand for minimally invasive surgery is increasing rapidly. Furthermore, technological advancement in orthopedic surgical navigation procedures, increasing incidence of osteoarthritis, and rise in funding for R&D are other factors expected to boost the demand.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 44.7% in 2022. The availability of improved infrastructure, high awareness levels, and favorable government initiatives about promoting orthopedic navigation systems are some factors contributing to the growth of this region. In addition, factors such as the increasing geriatric population, high government spending on healthcare, well-developed reimbursement structure, and presence of established manufacturers in the region contribute to the regional market growth. Moreover, the collaboration between government organizations such as the American Board of Orthopedic Surgeries and educational institutes such as the Accreditation Council for Graduate Medical Education is further upskilling competencies-based education in this sector. This is further fueling the growth of orthopedic navigation systems.

Asia Pacific is expected to grow at the fastest CAGR of 13.7% during the forecast period. The growth is due to high unmet clinical needs, increased government initiatives to improve patient awareness related to minimally invasive procedures for replacement surgeries, and rising investments by manufacturers for the production of cost-efficient orthopedic navigation systems. The geriatric population is more prone to orthopedic disorders, presenting a huge target population in the region, with China, Japan, and India being the major regional contributors. These are some reasons companies are moving towards the Asia Pacific orthopedic navigation systems market. For instance, in May 2023, a medical device company Exactech announced its plan to fast-track its Newton knee technique expansion in the Asia Pacific region. The announcement made by the company followed the 96th Annual Meeting of the Japanese Orthopaedic Association. Newton's knee technique aims to improve the surgical process ensuring consistent balance in surgeries by giving important data on gap balance.

Application Insights

Based on application, the global orthopedic navigation market is segmented into the knee, hip, and spine. The knee segment dominated the market with the largest revenue share of 46.3% in 2022. An increasing number of total knee replacement procedures and rising awareness about associated benefits contribute to its dominance. In addition, wider applications in multiple surgical conditions, such as total knee arthroplasty, uni-compartmental (partial) knee replacement, kneecap replacement (patellofemoral arthroplasty), and revision knee replacement, further support segment growth.

Increasing technological advancements, such as minimally invasive surgeries, accompanied by the availability of improved implant materials, are likely to boost knee surgery procedure volumes, thereby supporting segment growth. The further growth is due to upcoming technologies and innovations in this segment. For instance, in March 2022, Pixee Medical launched the ‘Knee+’ first augmented reality (AG) guidance system for total knee arthroplasty. It will help the orthopedic surgeon in real-time 3D positioning of instruments with the help of augmented reality glasses without using disposable and bulky capital equipment.

The spine segment is expected to grow at the fastest CAGR of 13.4% over the forecast period. This growth is due to the increasing volume of spine surgeries as spinal disorders are increasing. Spinal injuries are the main reason for mortality and morbidity resulting from either weakening of the neurological injury or bony spine to the spinal nerves or spinal cord. Quick medical and surgical treatment is vital to diminish chronic functional disability.

In addition, the increasing incidence of sports injuries and the growing number of road accidents and falls lead to segment growth. This factor attracts major market players to invest more in this segment. For instance, in September 2022, Stryker, a leading medical technology company, launched its first spine navigation software, ‘Q Guidance System,’ which received 510 (k) clearance from the U.S. Food and Drug Administration (FDA). This navigation software is designed to support cranial surgeries that aim to elevate surgical ability.

Technology Insights

Based on technology, the market is segmented into electromagnetic, optical, and others. The optical segment dominated the market with the largest revenue share in 2022. This system has boosted technical procedures in surgery and paved the way for complex procedures. An optical surgical navigation system is easier to complete than old-style surgical systems. Moreover, it is built on the principle of stereo vision with high precision. These systems find application in medical procedures requiring very high precision and demanding major access paths. Some optical navigation systems, such as optical coherence tomography (OCT) and Raman Spectroscopy, can be used to sense the inheritance capability of bone, and surgeons will benefit from the visual images of bone. Such advantages associated with the technology can be attributed to segment growth.

Electromagnetic navigation systems involve electromagnetic techniques comprising magnetic field producers and magnetic field detectors to create a live image of the body. This navigation system is particularly important for elderly people, who are extremely vulnerable to numerous physical conditions. According to the National Cancer Institute, electromagnetic external shock wave therapy (ESWT) systems are designed for orthopedic procedures. Orthopedic ESWT systems are used for orthopedic procedures to alleviate pain; they are also intended for treating chronic orthopedic diseases such as plantar fasciitis, lateral epicondylitis, and calcifying tendonitis of the rotator cuff. This is expected to support the segment growth in the coming years.

End-use Insights

Based on end-use, the market is segmented into hospitals and ambulatory surgical centers. The hospital segment dominated the market with the largest revenue share in 2022. Hospitals offer a large array of treatment options relating to pain management and orthopedic procedures. Moreover, the presence of technologically advanced medical devices and the increased patient footfall under these facilities further drive segment growth.

The ambulatory surgical centers (ASCs) end-use segment is expected to witness the fastest CAGR over the forecast period. Factors such as reduced wait times, personalized care, and shorter stay duration have increased the demand for these centers. Innovative surgical methods in such settings allow tests and procedures to be performed without hospital admission. This is expected to support segment growth.

Key Companies & Market Share Insights

Key factors that can be attributed to a few players' dominance include an extensive product portfolio and a wide global distribution network. However, other players are also gaining significant market share due to mergers & acquisitions and new product development activities. For instance, in January 2023, Orthofix, a global medical device company working majorly on spine and orthopedics, and SeaSpine, a medical technology company focusing on surgical disorders related to the spine, announced the merger of equals. The merger catalyzes Orthofix Medical Inc. as the leading global orthopedics and spine company.

The key players are involved in various strategies, such as distribution agreements, expansion strategies, and new product development, to improve their market penetration. For instance, in November 2020, Stryker announced the acquisition of Wright Medical to enhance its position in the global market of extremities & trauma, providing ample opportunities to reach more patients, advance innovation, and improve outcomes.

In July 2020, Smith+Nephew introduced a device called RI.HIP Navigation for Total Hip Arthroplasty. This device received CE Mark certification and the U.S. Food and Drug Administration (FDA) 510(k) clearance for Total Hip arthroplasty. As a result of such initiatives, competitiveness in this industry is expected to be high in the upcoming years.

Orthopedic Navigation Systems Market Report Scope

Global Orthopedic Navigation Systems Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global orthopedic navigation systems market based on application, technology, end-use, and region.

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Knee

  • Hip

  • Spine

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • Electromagnetic

  • Optical

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospitals

  • Ambulatory Surgical Centers

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait