Driven by recent acquisitions, the orthopedic devices market is expected to grow at a 4 percent compound annual growth rate through 2025, according to a GlobalData report.
"While various sectors have seen a decline in mergers and acquisitions, deals in orthopedics have not shown any signs of slowing down," said Kevin Dang, medical devices analyst for GlobalData. He said major orthopedic device companies aim to expand their portfolios by integrating new products from other segments.
Smith+Nephew and Stryker already have both made big acquisitions this year. Smith+Nephew entered the shoulder replacement and foot and ankle segments with its acquisition of Integra LifeScience's extremity orthopedics business, and Stryker's acquisition of OrthoSensor will add wearables and smart implants to its orthopedics line.
"This unique approach will open up more opportunities in the sector should this deal turn out to be a success, because competitors will soon follow with shrewd acquisitions of their own," said Mr. Dang.
During the fourth quarter of 2020, there were 15 major deals in orthopedics, compared to five deals during the third quarter.
If the current growth rate projections continue, the orthopedic devices market will reach $64 billion in 2025.