China’s Spinal Fusion Market to Double its Global Share by 2020

China’s spinal fusion market value will grow from $226 million in 2013 to $665 million by 2020, expanding at a compound annual growth rate (CAGR) of 16.66 percent, making it the world’s fastest growing spinal fusion market for the forecast period, according research and consulting firm GlobalData.

The company’s latest report claims the growth will cause China to double its global market share from 5 percent in 2013 to 10 percent in 2020, driven by the number of surgical procedures more than tripling from approximately 46,000 in 2013 to an estimated 146,000 in 2020.

“The primary reason for China’s phenomenal growth is the increasing spinal fusion surgery procedure volumes, resulting from favorable reimbursement levels and patients’ willingness to undergo surgery with minimally invasive techniques,” said Joseph Gregory, a GlobalData analyst covering surgical devices.

Additionally, GlobalData projects the spinal plating systems market in China will increase from $66 million in 2013 to $199 million by 2020, at a higher CAGR of 17.08 percent. This is substantially greater than the global average CAGR of 7.63 percent in this key segment.

China’s growth coincides with a downturn for the United States, whose global market share will decline from 71 percent in 2013 to 63 percent in 2020. Despite this, U.S.-based companies have positioned themselves to take advantage of the soaring demand for spinal surgery in China.

“Medtronic Spine & Biologics, already the world’s market leader and in command of 32 percent of the Asia-Pacific (APAC) spinal surgery market, is perfectly placed to capitalize on the burgeoning market in China, having acquired China Kanghui Holdings for $816 million in 2012,” noted Gregory. “The acquisition was a strategic move to increase the company’s presence in China, as well as to complement its current orthopedic and spinal implant offerings. The move will allow Medtronic to become a larger player in orthopedics and spine fusion in the APAC region’s surrounding and emerging markets.”