Australian Hip, Knee Implants Market to Top $1.3 Billion by 2030

Australia’s aging population is expected to drive demand for hip and knee implants over the next seven years, prompting the market to more than double in value, according to Astute Analytica. 

The global analytics and advisory firm predicts the country’s hip/knee sector will swell 11.46% annually through 2030, increasing its value from $552 million (2022) to $1.31 billion. According to a report by the Australian Bureau of Statistics, there were an estimated 4.2 million people aged 65 and over in June 2020, which represents approximately 16% of Australia’s total population. This number is expected to continue to rise, with estimates suggesting that between 21% and 23% of Australia’s population will be aged 65 and over by 2066.
 
Another key driver of market growth is the rising incidence of osteoarthritis (OA), the most common degenerative condition leading to hip and knee replacement surgeries. Roughly 20,000 knee and 19,000 hip replacement surgeries take place in Australia annually due to osteoarthritis. 
 
The primary implant segment is currently estimated to dominate the hip and knee implants market, holding a 74.6% share in 2022. However, this segment is projected to experience significant growth, with a 12% compound annual growth rate (CAGR) forecast through 2030. Polyethylene is currently the most widely used material for articulating surfaces in hip and knee implants. The polyethylene segment is projected to grow 13% annually, driven by the development of newer PE variants with different wear properties to extend the life of the arthroplasty and improve wear resistance.
 
The hospital segment currently accounts for 66% of the Australia hip and knee implants market. This segment is projected to grow 12.3% annually during the forecast period, thanks to the availability of cutting-edge treatment options and the increasing number of patients using these facilities. In terms of sales channel, the direct channel segment currently holds a 60% share.
 
The market is highly concentrated, with four major players holding more than 56% of the revenue share: Zimmer Biomet Holdings Inc., Stryker Corporation, Smith+Nephew, and B. Braun Melsungen. Consequently, competition in this market is intense and new entrants may face significant challenges in establishing a foothold. To gain a competitive edge, companies must focus on differentiating their products with unique features such as longer durability, ease of use, and cost-effectiveness. In addition, companies can consider strategic partnerships or collaborations with other firms to expand their reach and access new markets. As these major players are large multinational corporations, they have the financial resources and distribution networks to operate in different countries, which makes them more robust to regional economic downturns.
 
Some of the top market trends include: 

• Minimally Invasive revolution: The rise of minimally invasive procedures in hip and knee replacement surgery is revolutionizing the way patients recover. These procedures use smaller incisions, resulting in less pain, shorter recovery time, and a quicker return to normal activities.
• Advanced implant materials: Improvements in implant materials have led to stronger and more durable implants. This is especially beneficial for active patients, who need an implant that can withstand their lifestyle.
• Cutting-edge surgical techniques: Surgical techniques have advanced to the point where hip and knee replacement surgery is safer and more effective than ever. Smaller incisions reduce the risk of complications, and advanced technology allows for more precise and accurate placement of the implant.
• Improved post-operative care: Post-operative care has also evolved, with new rehabilitation protocols helping patients recover faster, and reducing the risk of complications.
• More options for patients: With the availability of a wide range of hip and knee replacement systems, patients have more options from which to choose. They can select the implant that best suits their needs and preferences, leading to better outcomes and higher satisfaction rates. 

Polyethylene is a crucial material used in the production of hip and knee implants and is responsible for generating a significant portion of market revenue (more than 40%). This highlights the essential role of polyethylene in the industry and the importance of this material for the production of these medical devices. From a business standpoint, companies that produce polyethylene for use in hip and knee implants have a strong market position. This large market share indicates that they are well-established industry players and have a proven track record of providing high-quality polyethylene products.
 
These companies in the Australia hip and knee implants market can capitalize on this market position by continuing to invest in R&D to develop new and improved polyethylene materials. This will allow them to stay ahead of the competition and maintain their market share by offering products that have better performance, durability and longevity. Additionally, these companies can also look to expand their business by targeting other regions and countries. Diversifying their product portfolio to other medical devices and implants that use polyethylene as a key material can also be a good strategy.
 
Top market players include: Arthrex Inc., B. Braun Melsungen, ConforMIS, Corentec Co. Ltd., Corin Group, DJO Global LLC, Elite Surgical, Exactech Inc., GROUP FH ORTHO communication, Johnson & Johnson Services Inc., KYOCERA Medical Technologies Inc., Stryker Corporation, and Zimmer Biomet, among others.