The global hip and knee reconstruction market is projected to grow at a sluggish rate to reach $16.46bn by 2022, according to a report by GlobalData.
The market was valued at $14bn in 2015 and will grow at a compound annual growth rate of 2.5% during the forecast period.
Entitled 'MediPoint: Hip and Knee Reconstruction - Global Analysis and Market Forecasts', the report reveals that despite an increase in the number of hip and knee replacements cases, the market will suffer from certain economic factors.
Levying of medical device excise tax in the US accompanied by austerity measures in Europe and a delay in elective surgery have all contributed to slow growth in the hip and knee reconstruction segment.
The existing economic environment in Europe as a result of the Eurozone debt crisis has impacted on the growth of the joint replacement market. Medical practitioners will also be more hesitant to adopt new products due to the uncertainty of whether the benefits of premium implants will be worth the high costs, according to the report.
GlobalData's managing analyst on medical devices Linda Tian said: "Similar issues can be seen in the US, as the medical device excise tax, which imposes a 2.3% tax on domestic sales of medical devices, puts an immense and costly burden on manufacturers.
"Some of the ramifications of tax implementation include increased price tags, layoffs, cuts in research and development, and delayed expansion plans, which will adversely affect growth prospects for the hip and knee reconstruction markets during the forecast period."
The market for hip and knee reconstruction includes primary, partial, and revision hip and knee replacements, as well as hip resurfacing. The growing popularity of total joint replacement surgery as a treatment option for degenerative joint disease is offset by high procedure costs and strict budgetary measures in the healthcare system.
The GlobalData report also finds that patients are delaying hip and knee replacements because of high costs and are instead opting for viscosupplementation to delay knee replacement surgery. Viscosupplementation is the removal of inflamed synovial tissue, debris and impinging bone spurs that offers immediate relief.